The Philippine Amusement and Gaming Corporation recorded a remarkable growth of net income within the first nine months of 2025. According to the regulator’s latest financial update, net income was Php14.32 billion, or US$244 million, a 49% increase compared to the same period last year. Still, despite this robust growth, PAGCOR also disclosed a recent slowdown in income growth mainly driven by regulatory tightening in the electronic gaming sector, or eGames.
Income Growth and Recent Challenges
In the first half of the year, PAGCOR’s income was on a steady rise, from around Php4.2 billion (US$71.5 million) in the first quarter to Php6.6 billion (US$112 million) in the second quarter, powered by a strong performance in eGames, an increasingly important contributor. The following quarter resulted in revenues declining back to approximately Php3.5 billion (US$59.6 million), as new restrictions were placed on the eGames segment.
This slowdown is linked to the regulatory steps made by the Philippine Central Bank when it instructed e-wallet providers to stop direct links to online gambling platforms. PAGCOR attributed this to a Senate hearing, where it explained that its income fell 49% in the two months following the enforced removal of links to online gambling. This was actually meant to address concerns linked to online gambling but also hit licensed operations under the jurisdiction of PAGCOR itself.
Revenue Breakdown and Contributions
Total revenues for the period January to September attained Php84.1 billion (US$1.43 billion), up by 5.87% from last year’s Php79.4 billion (US$1.35 billion). Of this amount, gaming operations revenue comprised Php75.9 billion (US$1.29 billion), while other related services and income contributed Php8.16 billion (US$139 million).
PAGCOR’s Chairman and Chief Executive Officer, Alejandro H. Tengco, said its financial results show the stronger drive of the agency toward good governance, digital transformation, and the promotion of sustainable and responsible gaming.
In line with its mandate, PAGCOR’s total contributions to nation-building grew 11% to Php54.3 billion (US$924 million) during the first nine months of the year. Two-thirds of the amount was remitted to the National Government by virtue of Presidential Decree 1869 which allocates 50% of its gaming revenues net of 5% franchise tax to government programs. The funds also go to agencies such as the Dangerous Drugs Board and the Philippine Health Insurance Corporation (PhilHealth).
Tax Payments and Broader Impact
Aside from its direct government dues, PAGCOR paid PhP3.79 billion (US$64.5 million) in franchise taxes and PhP609.87 million (US$10.4 million) in corporate income taxes to the country’s BIR, underlining its position as a vital source of income.
Chairman Tengco said PAGCOR is committed to seeing that earnings are channeled back to public benefit projects. He said the PAGCOR itself had likewise emphasized that all its earnings are reinvested in public welfare, such as classroom construction, healthcare facilities, disaster response efforts, and various community development projects. He says they will continue this momentum, along with keeping a responsible industry and regulated compliance from the agency at the top of the list.
Navigating the Online Gaming Landscape
Significantly, PAGCOR is alarmed by the proliferation of at least 12,000 illegal online operators, with their offers undercutting a regulated market of only 77 licensed platforms and perpetuating the scourge of gambling addiction. Secondly, PAGCOR considers a ban on eGames to be counterproductive and a balanced regulatory approach because strangling the legal market could drive players into the arms of unregulated operators, translating to huge revenue losses and impacts on jobs.
Other innovations include setting up an AI-powered monitoring system and a special 24/7 helpline for calls to further drive responsible gaming. For its part, the strong growth recorded by PAGCOR in the first nine months of 2025 is tempered by recent restrictions placed on eGames.
It will be defined in the coming months by sustained endeavors on the part of the agency in balancing governance and the adoption of technology for added player protection. Meanwhile, PAGCOR remains steadfast in its goals: to provide a viable gaming industry for the country and to create revenue for the Filipino people through its nation-building endeavors.
Source: Inside Asian Gaming (IAG)