PAGCOR maintains target for late-2026 to 2027 Casino Filipino privatization

01-10-2020 |  

The Philippine Amusement and Gaming Corporation (PAGCOR) is targeting the privatization of its Casino Filipino operations by late 2026 or early 2027, as part of a broader plan to transition into a purely regulatory body.

Cited by Philstar, PAGCOR chairman Alejandro H. Tengco said the planned sale of Casino Filipino branches could generate between PHP30 billion and PHP50 billion ($530 million to $880 million), broadly in line with earlier estimates.

Speaking over the weekend, Tengco said the state-owned gaming regulator and operator is awaiting the completion of a comprehensive review by the Governance Commission for Government Owned and Controlled Corporations (GCG). He added that PAGCOR is seeking the GCG’s approval, or ‘green light,’ for its proposed “decoupling” process as early as next year.

The remarks are consistent with statements Tengco made in September, as PAGCOR continues to wait for the GCG’s nod.

Under the decoupling plan, PAGCOR would exit casino operations entirely and assume a solely regulatory role, focusing on issuing licenses and collecting regulatory and license fees from private operators. Tengco said that once the GCG review is completed and approval is granted, the proposal will be forwarded to the Office of the President. The final step may involve the issuance of an executive order or amendments to existing directives to formalize the transition.

Tengco noted that the timeline for completing the shift will depend on the pace of regulatory approvals, but said the transition could be finalized by late 2026 or early 2027. He reiterated that the sale of Casino Filipino branches is expected to provide a significant one-off boost as PAGCOR exits direct gaming operations.

However, Tengco acknowledged that privatization will fundamentally alter PAGCOR’s revenue structure. Once the agency stops operating casinos, income from gaming operations will cease and be replaced primarily by license and regulatory fees collected from private casino operators. He noted that current legislation allocates around 70 percent of PAGCOR’s income to nation-building contributions, a structure that will change following privatization as revenues shift toward regulatory collections.

According to the latest financial results, PAGCOR’s self-operated casinos under the Casino Filipino brand recorded PHP3.22 billion ($57 million) in revenue in the third quarter of 2025, down 11.6 percent year-on-year.

Casino Filipino properties accounted for about 3.4 percent of total Philippine gross gaming revenue during the period.

At the same time, Tengco stressed that PAGCOR’s operating expenses are expected to decline sharply after decoupling. The regulator will no longer need to maintain casino personnel or lease and operate gaming facilities, which he said would help offset the anticipated drop in gross income.

As reported earlier by AGB, PAGCOR is also prioritizing the modernization of its Casino Filipino venues while processing the privatization plan. This includes upgrades to gaming facilities and the acquisition of new equipment to improve asset value and operational standards ahead of a potential sale.

Source: AGBrief