The Philippines’ plan to privatise 43 Casino Filipino venues is facing political, legal and commercial resistance as the government seeks to end the regulator’s dual role as industry supervisor and casino operator.
The Philippine Amusement and Gaming Corporation expects the sale to raise between PHP30bn and PHP50bn (US$488m to $813m), below earlier estimates of PHP60bn to PHP80bn.
Pagcor chairman and chief executive Alejandro Tengco wants the state-owned group to dispose of its casinos by 2028, leaving it solely responsible for licensing and regulating the country’s gambling industry.
“A referee cannot also be a player on the same field,” Tengco said.
The proposal is being reviewed by the Governance Commission for Government-Owned or Controlled Corporations. A recommendation is expected to reach President Ferdinand Marcos Jr before the end of 2026.
Casino Filipino generates more than PHP10bn annually from 43 venues serving predominantly local mass-market players. Potential buyers are expected to include the operators of Manila’s integrated resorts.
Alliance Global Group chief executive Kevin Andrew Tan has previously expressed interest in selected venues as part of plans to expand Newport World Resorts beyond Manila.
The reduced valuation partly reflects Pagcor’s lack of ownership over most of the properties housing its casinos. Buyers would acquire gaming operations, licences and future revenue rather than the underlying real estate.
Individual asset sales and lease transfers would require negotiations with landlords, potentially allowing property owners to demand higher rents or withhold consent.
Employee liabilities could create further pressure on bids. Pagcor has indicated that buyers may be expected to retain between 50% and 70% of existing casino staff or contribute towards severance costs.
The Pagcor Employees Association has challenged the proposed structure, arguing that separating the organisation’s regulatory and commercial functions requires legislation rather than an executive order.
Opposition has also emerged in Congress. Representative Rufus Rodriguez has proposed establishing an independent regulator while allowing Pagcor to retain its casinos.
“Pagcor is earning tens of billions of pesos a year for the government and for its numerous public service programmes,” Rodriguez said. “Why sell the goose that lays the golden eggs?”
Privatisation could also reduce funding for the Philippine Health Insurance Corporation. Half of the government’s share of Pagcor gaming revenue is allocated to the national healthcare programme.
Legal firm Geronimo Law estimated that replacing direct Casino Filipino earnings with regulatory licence fees could create an annual healthcare funding shortfall of between PHP1.7bn and PHP2.1bn.
Pagcor’s own gaming revenue fell by 27% to PHP38.9bn during the first half of 2026, contributing to total corporate revenue of PHP43.3bn.
