PAGCOR Sets Course for Casino Filipino Divestiture to Stem Projected Losses
Cameron Walter · Oct 14, 2026
PAGCOR Sets Course for Casino Filipino Divestiture to Stem Projected Losses
PAGCOR has outlined plans to sell its network of 35 Casino Filipino properties, a move that encompasses twelve wholly owned sites along with twenty-three others operating under revenue-sharing agreements, and officials have placed a preliminary valuation between PHP20 billion and PHP30 billion, or roughly $318 million to $477 million, according to statements released in October 2026.
The regulator intends to complete the exit from casino operations during the third or fourth quarter of 2027 once necessary approvals clear the Governance Commission for Government-Owned or -Controlled Corporations and the Office of the President, allowing the agency to concentrate resources solely on its regulatory mandate.
Financial Pressures Driving the Decision
Operations face mounting shortfalls that have prompted the accelerated timeline, with internal projections indicating at least PHP7 billion in losses for 2026 compared with approximately PHP6 billion the prior year, a trajectory Chairman Alejandro Tengco has characterized as bleeding like mad amid elevated operating costs and intensified competition from private operators.
Data compiled by PAGCOR staff shows that high fixed expenses continue to outpace revenue growth at many locations, and the agency has determined that continued ownership no longer aligns with its long-term structural objectives.
Scope of the Proposed Transaction
The sale package includes the twelve facilities that PAGCOR controls outright plus the twenty-three additional venues tied to revenue-sharing contracts, giving prospective buyers a broad footprint across multiple Philippine regions while the agency retains oversight authority post-divestiture.
Valuations remain preliminary and subject to due-diligence reviews, yet the figures already signal a substantial transfer of assets that would reshape the domestic gaming landscape once regulatory clearances arrive.
Approval Process and Transition Timeline
Before any transfer proceeds, the Governance Commission for Government-Owned or -Controlled Corporations must evaluate the proposal, after which the Office of the President will conduct its own review, steps that officials expect to unfold over the coming months while PAGCOR prepares detailed asset inventories and financial disclosures.
The phased exit strategy calls for completion between July and December 2027, giving the agency time to wind down operational responsibilities and redirect staff toward regulatory functions that include licensing, compliance monitoring, and revenue collection from private gaming entities.
Strategic Shift Toward Regulation
Once the sale concludes, PAGCOR will cease direct participation in casino management and instead enforce rules across the broader industry, a realignment that mirrors similar transitions observed in other jurisdictions where state operators have stepped back to focus on oversight roles.
Agency records indicate that regulatory activities already generate significant income through fees and shares of private operator revenues, providing a foundation that could sustain operations without the drag of loss-making casino holdings.
Market Context in October 2026
News of the planned divestiture surfaced amid ongoing discussions about Philippine gaming policy, and reports from industry observers note that private casino developers have expressed interest in acquiring underperforming state assets to expand their own portfolios.
Figures released alongside the announcement underscore how competition from newer integrated resorts has eroded margins at several Casino Filipino locations, reinforcing teh case for a full withdrawal by the end of 2027.
Conclusion
The proposed sale represents a pivotal restructuring for PAGCOR, one that would transfer ownership of thirty-five properties while positioning the agency to strengthen its regulatory framework ahead of the 2027 deadline, provided the required governmental approvals materialize on schedule.