Privatization of PAGCOR to start in 2025; 50B to 60B pesos in revenue predicted

The Philippines’s gaming regulatory agency is set to privatize more 45 casinos; PAGCOR to modernize systems before privatization; PAGCOR predicts 50 to 60B pesos in revenue to be had from privatization; some government officials in objection.

Original story by Ronnel Domingo for Inquirer.net

Philippine Amusement and Gaming Corp. (Pagcor) is bent on kicking off by the middle of 2025 the privatization of 45 casinos that it operates, expecting proceeds ranging from P60 billion to P80 billion, Pagcor chair and chief executive Alejandro Tengco told lawmakers on Monday.

At a hearing conducted by the committee of appropriations at the House of Representatives, Tengco said that while the expected amount of privatization proceeds was conservative, Pagcor will improve the casinos and raise their value to make them more attractive to buyers.

“That is the minimum estimate, but we expect [the amount] to rise because [the privatization] will go through [competitive] bidding,” he said.

Based on a separate estimate of Albay Rep. Joey Salceda, privatization will generate proceeds of P120 billion to P128 billion.

Tengco added that privatization “is sure to proceed, there’s no stopping it, and President Marcos has approved it.”

Recently, during his State of the Nation Address, PH President Marcos lauded the performance of the PAGCOR, citing its contributions to state revenue.

However, some lawmakers, including Cagayan de Oro City Rep. Rufus Rodriguez, objected. Rodriguez said he would file a resolution to oppose the privatization plan.

“After hearing [Tengco’s report on the status of Pagcor], it seems that everything will be in order in the coming years,” Rodriguez said.

Earlier in the hearing, Tengco said Pagc or expected to post revenues of P72 billion for 2023, based on the first semester’s P36-billion top line.

Also, Tengco said the expected full-year revenue for 2023 would be near Pagcor’s prepandemic revenue of P76 billion in 2019.

“So why are we going to sell the goose that lays the golden egg when we have good people at the helm of Pagcor,” Rodriguez said.

“If we privatize this, then the regularity of income that we receive from Pagcor will be cut short,” he added. “Why [should we] give the traffic [revenue stream] to them (private entities)?”

Apart from Rodriguez, other government officials have also expressed opposition to PAGCOR’s privatization. Philippine Finance Secretary Benjamin Diokno recently expressed that the Philippine Amusement and Gaming Corp (Pagcor) should no longer continue its dual role as both operator and regulator of the country’s gaming industry.

Recently, PAGCOR cited an uptick of revenue growth at 35.6%. The government agency, which recently celebrated its 40th year cited that its contributions could reach PHP 70B by year’s end.

Learn more about the plans of the country’s principal gaming regulatory agency towards privatization and more insights from PH Congressman Rufus Rodriguez in the original article here: https://business.inquirer.net/415977/pagcor-gets-ball-rolling-on-casino-privatization