PAGCOR Casino Privatization Plan Moved to 2026 Instead of Mid-2025

September 12, 2024 Philippines iGaming & Gambling

The Philippine Amusement and Gaming Corp. (PAGCOR) has announced a delay in its plan to privatize approximately 40 of its casinos, pushing the timeline to early 2026. The delay is due to the need for amendments to PAGCOR’s charter.

PAGCOR Chairman and CEO Alejandro Tengco revealed that the agency is committed to shifting its focus more towards regulatory duties. The initial target of completing the privatization by mid-2025 has now been adjusted. The PAGCOR head forecasts that the agency will generate at least PHP50 billion from the privatization of over 40 casinos nationwide.

“As to the privatization of PAGCOR casinos, we intend to start the process by early 2026,” Tengco was quoted as saying by the PNA during the IAG Academy Summit held in Manila on September 10, 2024.

“Since day one, we have been very vocal about our plans to focus solely on PAGCOR’s role as a regulator to provide a level playing field for all our stakeholders.”

“We still have to amend the charter of PAGCOR. So next year will be allocated for the amendments.” He added, “Also, there are a lot of things to do. It’s not as easy as we thought it would be. And our priorities include modernization, the lessors.”

Currently, PAGCOR has a dual role as both operator and regulator. It regulates and licenses various forms of gaming, including casino gaming, while also operating around 40 casinos across the Philippines.

The planned sale of these casinos is expected to generate approximately PHP 50 billion. This is a decrease from the earlier estimate of PHP 60 billion to PHP 80 billion. Tengco noted, “Initially, I thought it was going to be big. But unfortunately, I realized that we do not own any property, we’re just leasing.”

The sale will focus on licenses and future revenue rather than physical properties, as PAGCOR does not own the casino buildings. Consequently, PAGCOR will not fund renovations for the casinos to be sold. Instead, the agency has reached agreements with lessors who have begun upgrading the gaming venues to boost profitability. Additionally, PAGCOR is modernizing its gaming facilities, including the acquisition of nearly 2,000 new slot machines to be delivered by mid-September.

Tengco emphasized the importance of these upgrades, stating, “As we prepare for the planned privatization of PAGCOR casinos, we intend to increase their value by modernizing our gaming facilities and equipment to make them more attractive to potential investors.”

Part of PAGCOR’s broader strategy includes establishing a Gaming Academy. This initiative aims to enhance the professionalism of the gaming industry by partnering with Asian gaming education providers. The academy will offer training to meet the growing demand for skilled professionals in both the Philippine and international gaming sectors.