PAGCOR Expects Casino Filipino Exit Ruling This Month

The Philippine Amusement and Gaming Corporation (PAGCOR) expects a key recommendation on its exit from Casino Filipino this month. Chairman and CEO Alejandro Tengco said a state commission will send its findings to the president before the month ends. The proposal would separate PAGCOR's regulatory role from its casino operations.

Tengco made the remarks on the sidelines of the Kaban Hotel and Casino Boracay grand opening, the Manila Bulletin reported. He said the state-run casinos could lose roughly ₱7 billion ($112 million) in 2026. Some existing licensees also want to buy Casino Filipino branches, he added. The timeline has slipped several times since late 2025.

GCG Recommendation on PAGCOR Decoupling Due in October

The Governance Commission for GOCCs (GCG) has been reviewing PAGCOR's plan for months. Tengco said the commission would act before the end of October. Its recommendation would go "to the Office of the President on whether it supports the decoupling or not," he said. Tengco told reporters the step would "definitely" happen this month. He also downplayed the chance of a rejection.

The president would then decide whether to issue the executive order needed to formally split PAGCOR's functions. PAGCOR had originally expected the GCG to act in August. In September, Tengco said a decision would come "very soon."

Licensees Eye Casino Filipino Sale Worth ₱20 Billion ($320 Million)

Tengco said interested buyers include "some of our existing licensees." Local media reports suggest Entertainment City operators are also interested.

PAGCOR expects to raise roughly ₱20 billion ($320 million) from the privatization. Tengco's preliminary valuation puts the casinos at ₱20 billion to ₱30 billion ($320 million to $480 million). A financial adviser would finalize that figure if the president approves the plan.

The proposal covers 12 wholly owned Casino Filipino properties. PAGCOR would also sell or transfer its interests in 23 licensed casinos. Severance costs for affected employees are estimated at around ₱20 billion ($320 million). PAGCOR's retirement trust fund currently covers that amount, Tengco said. He added that sale proceeds should cover any funding gap from the decoupling.

Casino Filipino Losses Mount as PAGCOR Tests Kaban Boracay Model

The push comes as Casino Filipino continues to lose money. Tengco projected losses of roughly ₱7 billion ($112 million) for 2026. He also expects PAGCOR's net income to fall below ₱5 billion ($80 million) this year, down from ₱17.5 billion ($280 million) in 2025.

Nationwide gross gaming revenue (GGR) may miss its initial target of about ₱400 billion ($6.4 billion). Tengco said it could instead land above ₱350 billion ($5.6 billion).

PAGCOR is also testing a new model at Kaban Boracay. Under the setup, the operator pays PAGCOR 35% of GGR and covers its own staff salaries. Tengco said the model could be replicated at other casinos. Elsewhere in Asia, Macau is sticking to its 2026 GGR forecast despite a slump.