State-run Philippine Amusement and Gaming Corp. (Pagcor) has blamed the lingering impact of the United States (US)-Iran war for the massive contraction of its net income to ₱1.6 billion in the first semester of 2026, largely reflecting the decline in e-gaming revenues.

Pagcor’s net income for the first half plunged 85.3 percent from ₱10.8 billion in 2025, it said in a statement on Thursday, July 30. The six-month decline reversed the massive growth seen in the previous year.

Chairman and Chief Executive Officer (CEO) Alejandro H. Tengco explained that this trend was due to the Pagcor’s “higher mandated remittances to the Philippine Sports Commission (PSC) following the Supreme Court’s (SC) ruling requiring the state gaming agency to remit five percent of its gross income to the PSC, instead of the previously adopted computation.”

Under the revised computation mandated by the SC, Pagcor turned over ₱2 billion to the PSC, 59 percent higher than the ₱1.3 billion remitted a year ago.

During the period, Pagcor said its revenues dropped by more than a quarter, due largely to weakened gaming operations. Total collections for the first six months reached ₱43.3 billion, down from ₱59.1 billion in the same period last year.

Tengco attributed the primary cause of this downturn to external volatility, which he likewise cited for the weak performance in the first quarter.

“Our first-half revenue results reflect the continuing impact of geopolitical tensions in the Middle East, which dampened consumer spending during the first quarter and affected overall industry performance,” the Pagcor chief said.

This pressure was particularly visible in the electronic gaming sector, where revenues from eGames, eBingo, and bingo grantees fell 41.9 percent to ₱18.6 billion from ₱32 billion in the previous year.

While there were signs of stabilization toward the end of the semester, Pagcor remains cautious about near-term developments.

“While market conditions improved in the second quarter, uncertainties remain, particularly with the recent uptick in global fuel prices,” Tengco said.

Despite these headwinds, the state gaming firm maintained its support for various government initiatives.

Pagcor contributed ₱30.2 billion to nation-building during the first half, it reported.

This total included the national government’s (NG) 50-percent share, which stood at ₱18.5 billion; the five-percent franchise tax at ₱1.9 billion; funding for socio-civic projects at ₱7.4 billion; and various sports incentives for athletes.

Looking ahead, Tengco said Pagcor is focused on strengthening industry performance through sound regulation and close collaboration with its stakeholders to ensure that the gaming sector continues to generate meaningful revenues for the country. - Derco Rosal