PAGCOR CEO Alejandro Tengco says their Casino Filipino venues could generate as much as P50 billion (US$847.8 million) when the privatization process begins.
The Philippine Amusement and Gaming Corp (PAGCOR) is set to roll out nearly 2,000 modern slot machines across its Casino Filipino branches by the middle of December 2024. This move is part of the government-owned corporation's ongoing efforts to modernize its gaming operations. Alejandro Tengco, PAGCOR's chairman and CEO, confirmed the first batch of machines, consisting of 1,968 units, was already delivered and will go live in the coming weeks.
Tengco disclosed that these new slot machines are part of a broader plan to upgrade the Casino Filipino network, which includes more than 40 land-based casinos and "satellite casinos" that operate in leased venues. The slots, purchased from the casino equipment supplier RGB International Bhd, are set to enhance the gaming experience for both local and international players at PAGCOR's properties.
The machines represent the first batch of a total order of 3,000 slot machines, part of a modernization initiative aimed at revitalizing the Casino Filipino brand. The total value of this initial contract is over US$81.3 million, which includes a variety of electronic gaming machines from well-known third-party brands. These include 888 units from Light & Wonder, another 888 from Aristocrat, 150 units from Konami, and 42 units from KL Saberi.
Tengco emphasized that these new machines are part of a broader strategy to improve the quality of Pagcor's gaming offerings before the agency moves forward with plans to privatize its casinos in the near future. “The first batch has been delivered and will be going live in the middle of December,” Tengco was quoted as saying in an interview with GGRAsia.
He added that the second batch of machines is expected to be deployed in the early part of 2025.
This modernization is part of a long-term plan to improve PAGCOR’s land-based operations before transitioning its focus to regulatory work. According to Tengco, PAGCOR intends to privatize its network of Casino Filipino venues by 2026, with the privatization process expected to start in 2026, not mid-2025 as originally anticipated.
The privatization plan follows a decision by PAGCOR to eventually phase out its role as an operator of casinos. This shift would allow the agency to focus more on its regulatory functions while potentially raising significant capital from the sale of the land-based operations. Tengco noted that PAGCOR's Casino Filipino venues could generate as much as P50 billion (US$847.8 million) when the privatization process begins.
The planned transition comes with the need for amendments to PAGCOR's charter, which would enable the privatization of the agency's gaming properties. Tengco explained that the agency is already working on the necessary amendments, which are expected to be finalized by next year. "Next year will be allocated for the amendments," Tengco said, noting that the government will need to update the agency's legal framework to move forward with the privatization process.
The sale of PAGCOR's land-based casinos has been a topic of discussion for some time. In March 2023, the government revealed plans to sell the Casino Filipino network in a bid to raise funds and shift Pagcor's focus to its core regulatory duties. The move is expected to help Pagcor streamline its operations, reducing the agency's role in day-to-day casino management, while also bringing in much-needed revenue for the government.
Although the privatization timeline has been adjusted over the past year, with initial estimates placing the sale in 2025, Tengco's recent remarks indicate that the privatization process will take longer than initially expected. With PAGCOR's charter requiring amendment, the shift to a regulatory-focused entity will likely take time to implement.
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