Pagcor Expects GCG Recommendation This Month on Casino Filipino Decoupling
GCG will recommend this month on decoupling Casino Filipino from Pagcor, with a potential 2027 operator exit. Privatization could raise at least PHP20 billion amid PHP6-7 billion annual losses. Tengco cited licensee interest and market headwinds pressuring net income below PHP5 billion.
SCCG Take — Decoupling would let Pagcor shed loss-making operations to focus on regulation, but success requires viable buyers and approval amid softening GGR and added remittances.
A recommendation on whether to decouple the Casino Filipino chain from the Philippine Amusement and Gaming Corp (Pagcor) is due within October. Alejandro Tengco, chairman and chief executive of Pagcor, said the Governance Commission for Government-Owned or Controlled Corporations (GCG) will advise the Office of President Ferdinand Marcos Jr. within October on whether it supports the split.
Tengco spoke on the sidelines of the recent Kaban Hotel and Casino opening in Boracay. He had indicated last month that the GCG would conclude its review very soon.
Decoupling Timeline and Operator Exit
Pagcor is looking to exit its casino operator role by the third or fourth quarter of 2027, subject to government approval. According to reporting by GGRAsia, privatisation of the state-owned Casino Filipino venues could raise at least PHP20 billion (US$318.8 million).
Tengco was quoted saying there is no other way forward on disposal. Some of Pagcor’s existing licensees are interested in acquiring outlets. Pagcor currently runs 35 casinos in its network, including 12 operated directly and 23 under revenue-sharing arrangements with private partners.
Financial Losses Driving the Decision
Casino Filipino operations posted circa PHP6 billion in losses last year. The figure is projected to reach PHP7 billion for full-year 2026. “Casino Filipino is bleeding like mad,” Tengco said, pointing to workforce maintenance costs.
The Philippine market’s 2026 gross gaming revenue (GGR) might not meet an initial target of approximately PHP400 billion but could instead come in above PHP350 billion, amid economic downturn and Middle East conflict. Pagcor’s net income could drop below PHP5 billion, down sharply from nearly PHP17.5 billion in 2025.
A Supreme Court ruling adds further strain, requiring Pagcor to remit 5 percent of gross revenue to the Philippine Sports Commission dating back to 1993. Monthly payments have increased from roughly PHP180 million to PHP400 million.
The GCG recommendation will determine whether this restructuring advances on the stated timeline. Approval would mark a concrete shift in separating regulatory and operational roles, though execution depends on identifying buyers and securing final government sign-off.
Reporting: GGRAsia
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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