The Philippine Amusement and Gaming Corp. plans to sell all 35 casinos it owns or operates under its license, seeking to raise at least P20 billion while shedding a loss-making business that could cost it P7 billion this year as it separates its commercial operations from its regulatory functions.
PAGCOR chairman and chief operating officer Alejandro Tengco said the state gaming regulator expects the Governance Commission for Government-Owned or -Controlled Corporations to recommend the proposed “decoupling” to the Office of the President within October.
“Casino Filipino is bleeding like mad,” Tengco told reporters on the sidelines of the opening of Kaban Boracay. “For 2026, I’m looking at a loss of P7 billion. That’s the minimum. We lost about P6 billion in 2025.”
The planned sale covers 12 casinos wholly owned by PAGCOR and 23 operating under revenue-sharing arrangements. The Casino Filipino properties include outlets in major urban centers such as Cebu City, Davao City, Angeles City, Tagaytay City, and Malabon City.
Tengco said PAGCOR would hire a financial adviser to finalize the casinos’ valuation if President Ferdinand Marcos Jr. approves the decoupling. His preliminary estimate puts their combined value at P20 billion to P30 billion.
Under the proposed sale, operators of the 23 casinos covered by revenue-sharing agreements would enjoy the right of first refusal, while the 12 wholly owned properties would be offered to potential bidders. Tengco said major industry players, including casino operators in Entertainment City, have already expressed interest.
Tengco said proceeds from the asset disposal should fill any funding gap from the cost of the decoupling, including severance payments estimated around P20 billion but currently covered by PAGCOR’s retirement trust fund.
He described the separation as a major institutional reform with legal, financial, operational, and human-resource implications that must be carefully executed.
PAGCOR is already testing a different commercial model at Kaban Boracay. Under the arrangement, the casino operator pays PAGCOR 35 percent of gross gaming revenue but shoulders the salaries of its own employees, reducing the state firm’s payroll burden.
Tengco said the model could be replicated at other casinos, potentially allowing PAGCOR to retain gaming income without carrying the same operating costs.
The proposed divestment would mark a major shift for PAGCOR, which has long regulated the gaming industry while competing in it through its own casino operations. Selling the casinos would remove a persistent financial drain and allow the agency to focus on regulation, while using the proceeds to help pay for the transition.
