PAGCOR Casino Filipino Privatization: ₱30B Sale Plan Amid Losses
The Philippine Amusement and Gaming Corporation (PAGCOR) is considering selling its Casino Filipino business for an estimated ₱20 billion to ₱30 billion as mounting operating losses intensify pressure for a shift away from direct casino management.
The state gaming regulator is targeting an exit from casino operations in the third or fourth quarter of 2027, subject to government approval and the completion of the required transaction procedures.
PAGCOR Chairman and CEO Alejandro H. Tengco has said the proposed sale forms part of a broader plan to separate the agency’s commercial gaming activities from its regulatory responsibilities.
PAGCOR Casino Filipino privatization faces key approval decision
The proposed PAGCOR Casino Filipino privatization remains dependent on government approval of the planned separation, commonly referred to as “decoupling.”
The Governance Commission for Government-Owned or -Controlled Corporations (GCG) is expected to submit its recommendation to the Office of the President within October 2026, according to recent public statements by Tengco.
Presidential approval would clear the way for the next steps in the proposed restructuring. The sale has not been completed, and its final scope, valuation and implementation remain subject to the relevant approvals and transaction process.
The separation is intended to allow PAGCOR to focus on regulating the gaming industry rather than simultaneously operating casinos within the market it oversees.
Proposed sale valued at up to ₱30 billion
PAGCOR has placed a preliminary value of ₱20 billion to ₱30 billion on the planned divestment. A final valuation has yet to be established.
The agency’s casino network comprises 35 locations: 12 casinos operated directly by PAGCOR and 23 covered by revenue-sharing arrangements with private partners.
The eventual transaction structure will determine how individual properties and operating arrangements are transferred. The proposed sale would require financial assessment and due diligence before the assets could be disposed of.
PAGCOR has also initiated procurement for financial advisory and valuation services for the potential privatization of its Casino Filipino business units. The procurement notice describes work that includes valuation, financial and legal due diligence, and transaction support, subject to the necessary government authorization.
Rising Casino Filipino losses add urgency
The planned exit comes as PAGCOR anticipates at least ₱7 billion in losses from Casino Filipino operations in 2026, compared with approximately ₱6 billion in 2025.
Tengco has attributed much of the financial pressure to rising personnel expenses. The cost of maintaining the casino workforce has become a central consideration in the agency’s plans to change its operating model.
The projected figure is an estimate for 2026, rather than a finalized full-year result. The eventual financial outcome will depend on actual operating performance and expenses through the end of the year.
The proposed sale is intended to address PAGCOR’s role as both gaming regulator and casino operator while changing how its commercial operations are managed.
What happens next?
The next major step is the government’s decision on whether PAGCOR can proceed with the proposed separation of its regulatory and commercial functions.
If approval is secured, the agency will need to advance the valuation, due-diligence and transaction stages before ownership or operating responsibilities can be transferred. The final sale proceeds will depend on the valuation and the terms of any completed transactions.
PAGCOR’s stated target is to exit casino operations in the third or fourth quarter of 2027. That timetable remains a target, not a confirmed completion date.
For now, the proposed divestment represents a significant potential change in the structure of Philippine gaming regulation. Its outcome will depend on government approval, the valuation of the casino business and the successful execution of the sale process.
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Sources
Asia Gaming Brief
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