The Philippine Amusement and Gaming Corp. (PAGCOR) expects gross gaming revenues to recover in the second half of the year as declining fuel prices ease pressure on consumer spending.
The state gaming firm anticipates that the electronic gaming segment will lead growth, particularly among lower-income Class D and E consumers.
PAGCOR’s chief executive said electronic gaming activity should improve in the third and fourth quarters following recent reductions in fuel costs.
Gross gaming revenues in the second quarter are expected to remain weak, weighed down by the conflict in the Middle East, which disrupted tourism and consumer spending.
The executive noted that the absence of tourists and VIP players due to the war affected revenue, while lower-income consumers also curtailed spending on electronic gaming.
He projected second-quarter revenues will likely match the prior quarter but fall well below year-ago levels.
The Philippine gaming industry recorded P87.6 billion in gross gaming revenues in the first quarter, down 15.87% from P104.12 billion a year earlier.
International visitor arrivals reached 2.74 million in the first five months, up 7.9% from a year earlier, according to tourism data.
Despite the overall increase, arrivals from South Korea, a key market for integrated resorts, declined 10% to 501,000 during the period.
Headline inflation eased to 6.4% in June from 6.8% in May, alongside recent fuel price declines that could support household consumption.
Separately, the planned separation of PAGCOR’s regulatory and casino operating functions remains on track for completion within the year.
The Governance Commission for Government-Owned or -Controlled Corporations said its review of the proposed decoupling is ongoing to ensure procedural accuracy.
A commission official said the transition is largely prepared but declined to set a specific deadline, reaffirming it would conclude this year.
Once approved, PAGCOR’s reorganization will be implemented in phases, with interest in the operating assets coming from existing integrated resort operators.
PAGCOR’s chief said that after the commission submits its recommendation, the Office of the President will review the proposal before issuing an executive order.
He described the shift to a purely regulatory role as a defining legacy of his leadership at the agency.
