It means "unfortunately".

Posted by Masakim on November 11, 2001

In Reply to: It means "unfortunately". posted by Bruce Kahl on November 11, 2001

: : more's the pity what does that phrase mean?

: Your phrase is adverbial and means the same as "unfortunately".

: For instance:

: Did you pass the test?
: More's the pity!, I flunked!

More's the Pity, The. It's regrettable (sometimes said with tongue in cheek, since the speaker us actually rather pleased that the thing has happened). The straight version was employed in 1797 by R. M. Roche in _Children of the Abbey_: "Poor thing, she is going fast indeed, and the more's the pity, for she is a sweet creature."
From The Dictionary of Cliches by James Rogers

He's got a bad reputation, and it's true, more's the pity. (_Woman_)

Decisions like these showed that the actions of the present Government were not all of a single tough-minded piece. The more the pity, then, that the verdict on United Clyde Shipbuilders was delivered with such apparent indifference. (_The Listener_)