Philippine Gaming Faces Tougher Second Half Says Maybank

Maybank Investment Bank sees a tougher second half for Philippine gaming, with land based casinos facing softer tourism, higher costs and weaker VIP demand.

Good to know

• Pagcor chief Alejandro Tengco said Philippine gaming GGR could fall as much as 19% in 2026.
• Maybank named online gaming as the main bright spot for the sector.
• DigiPlus Interactive Corp is expected to benefit from promotions and wider reach into lower income customer segments.

Online Gaming Carries More Of The Market

The stronger part of the Philippine gaming story now sits online. Maybank said digital operators can outperform as they lean on promotions and reach players outside the traditional casino customer base.

DigiPlus Interactive Corp, listed in the Philippines, was named by Maybank as one operator positioned to benefit from that trend.

That matters because land based casino growth looks less reliable in the near term. Online gaming gives operators a lower cost channel, broader access and less dependence on foreign arrivals or VIP rooms.

Casinos Face Cost And Tourism Problems

Maybank warned that “brick-and-mortar casinos face steep headwinds due to inflation, high utility costs cannibalising disposable income, and a lack of VIP high-rollers tied to slower-than-expected tourism growth.”

Foreign visitor arrivals rose 2.6% year on year in the first quarter to about 1.76 million. Growth came from most key markets, but South Korea and China stayed weaker. For Philippine casinos, those two markets matter because they have historically supported mass tourism and premium gaming activity.

Higher utility costs also squeeze casino margins, while inflation reduces local discretionary spending. That combination leaves venues fighting on both sides: fewer high value tourists and less spending power at home.

Pagcor Forecast Shows Revenue Risk

Maybank also pointed to comments from Alejandro Tengco, chairman and chief executive of the Philippine Amusement and Gaming Corp, or Pagcor.

At the start of June, Tengco said Philippine gambling GGR could fall by as much as 19% in 2026. Revenue could land as low as PHP320 billion ($5.20 billion), compared with PHP396.14 billion in 2025.

That forecast gives Maybank warning more weight. The issue is not only weaker foot traffic or higher bills. It is a potential broad decline in total Philippine gaming revenue, with digital growth helping soften the hit rather than fully removing it.

The post Philippine Gaming Faces Tougher Second Half Says Maybank appeared first on iGaming.org.