The Philippine Amusement and Gaming Corporation (PAGCOR) has hailed the long-term potential of the country’s iGaming sector, despite the market being impacted by ongoing tensions in the Middle East.
Alejandro Tengco, the regulator’s Chair and Chief Executive Officer, said he remained ‘hopeful’ that the industry will begin to recover once the geopolitical tensions that have destabilised the country’s economy and reduced consumer spending are resolved.
PAGCOR reported a year-on-year gaming revenue decline of 15.87% to P104.12bn through the first quarter of 2026.
The e-games sector was most significantly hit, as revenue fell by 22.43% YoY to P39.9m during Q1, reversing a trend of positive iGaming growth in 2025. Meanwhile, licensed casinos generated P44.5bn, while PAGCOR-operated casinos contributed a further P3.17bn.
“We attribute the first quarter dip to several factors, including softer discretionary spending amid geopolitical tensions in the Middle East, and rising inflationary pressures,” explained Tengco.
PAGCOR’s leader spoke in April of the need for regulators around the world to come together to meet the challenges presented by the conflict between the US, Israel and Iran, as he said that the global gambling market is ‘feeling the impact of the oil crisis’.
Wynn expects delays on UAE project
Alongside PAGCOR, Wynn Resorts has also been left to count the costs of the conflict.
Earlier this month, the company confirmed that there would be a ‘modest delay’ to the construction of its Al Marjan Island casino in the UAE – a country that has been targeted by missile attacks from Iran.
The company’s CEO, Craig Billings, told investors that the company has had to ‘wear’ some of the expenses caused by increased shipping costs and logistical challenges associated with carrying on the construction in the current climate.
So far, Wynn has invested over $1bn in the project, which it has a 40% stake in alongside Marjan LLC and RAK Hospitality Holding. Once complete, the resort will be the first land-based casino opened in the UAE.
Like Tengco, Billings has expressed optimism that the region can bounce back from the challenges presented by the conflict.
He said: “[The UAE] is a country that has navigated multiple regional conflicts over the past two decades and has consistently come out stronger. They’ve done that by investing in infrastructure, diversifying their economy, and positioning themselves as a neutral hub for commerce and tourism.”
Although both men remain positive, peace talks between the US and Iran appear to have stalled, further prolonging the impact on Asia’s gambling sector.