Pagcor to exit Casino Filipino by Q3/Q4 2027 after PHP7,000m losses

Pagcor plans to exit direct operation of Casino Filipino in the third or fourth quarter of 2027 after reporting projected losses of PHP7 000 millones in 2026. The state-owned Philippine Amusement and Gaming Corporation has filed for government approval to separate its regulatory duties and sell the assets; the proposal includes an expectation of raising at least PHP20 000 millones (about $318.8 millones).

## Pagcor and the possible sale of Casino Filipino

The Philippine Amusement and Gaming Corporation (Pagcor) directly operates 12 casinos and maintains 23 venues under revenue-sharing agreements. The formal plan submitted by management requests authorization to exclude casino operations from the regulator's structure, which requires approval from the Governance Commission for Government-Owned or Controlled Corporations (GCG) and subsequently the President of the Philippines.

Pagcor has received expressions of interest from existing licensees to acquire Casino Filipino venues. The proposed sale, according to sources within the corporation, could produce a minimum receipt of PHP20 000 millones, a figure management has cited to justify the move against its current financial burden.

## Losses and financial pressures driving the exit

President and Chief Executive Alejandro Tengco attributes the losses mainly to staffing costs and prior financial obligations. Tengco said at the opening of the Kaban Hotel and Casino in Boracay:

“Casino Filipino is bleeding like mad.” — Alejandro Tengco

Beyond operating losses, Pagcor faces an additional liability stemming from a Supreme Court ruling that requires payments equivalent to 5% of gross revenues to the Philippine Sports Commission, retroactive to 1993. Tengco said that, because of that and other burdens, monthly remittances have risen from roughly PHP180 millones to PHP400 millones.

The impact on consolidated accounts is visible in internal estimates: Pagcor expects its net income could fall below PHP5 000 millones in 2026, versus nearly PHP17 500 millones in 2025.

## Institutional timetable: GCG decision and next steps

Tengco said the Governance Commission for Government-Owned or Controlled Corporations will issue a recommendation to the Office of the President in October 2026 on whether it supports the operational separation. If the GCG recommends approval and President Ferdinand Marcos Jr approves, Pagcor projects to complete the exit from casino operations in Q3 or Q4 2027.

The formal sequence described by management includes:

1. 1. Recommendation from the GCG to the Office of the President (expected October 2026).

2. 2. Presidential decision on the regulatory separation.

3. 3. Implementation of the sale and transfer of assets before Q3/Q4 2027, subject to approvals and contract awards.

## Regulatory implications: separating regulator and operator

The proposal would end the arrangement in which the Philippine Amusement and Gaming Corporation both regulates private casinos and operates its own venues. The separation will require institutional changes and, in practice, a redistribution of functions currently concentrated in Pagcor. This issue directly raises governance and conflict-of-interest concerns in the local market; for that reason the route goes through GCG evaluation and presidential decision.

The debate over the separation touches public policy and gaming regulation in the Philippines. For operators and suppliers already competing for assets, the sale of Casino Filipino opens a transfer process that will likely include existing licensees and other interested parties for the operating venues.

## Macro context and market figures

Tengco places the sector's revenue weakness on a mix of economic cooling and the impact of the Middle East conflict. Pagcor estimates Philippines gross gaming revenue (GGR) will exceed PHP350 000 millones in 2026, below the original target of PHP400 000 millones.

Those figures explain the pressure on the regulator-operator's profitability. The entity intends that asset sales will reduce fiscal and operational exposure and allow Pagcor to focus on its regulatory role if the government agrees to the separation.

## What changes for operators and potential buyers

Current Pagcor licensees have already shown interest in purchasing Casino Filipino venues. The transaction will involve negotiating purchase terms, potential license transfers and the resolution of existing staff arrangements and contracts. The official timetable conditions any closing on the GCG recommendation and presidential approval.

For suppliers and private operators, the sale creates expansion opportunities over sites with established operations and brand names. For the regulatory market, the operation — if approved — will free Pagcor to concentrate exclusively on supervision and enforcement.

## Upcoming milestones to watch

• - October 2026: GCG recommendation to the Office of the President.

• - Presidential decision by Ferdinand Marcos Jr on the proposed separation.

• - Pagcor target timetable to exit operations: third or fourth quarter of 2027.

Key financial figures to monitor include the projected PHP7 000 millones loss in 2026, the expectation to raise PHP20 000 millones from the sale and the evolution of monthly remittances to the Philippine Sports Commission, which have risen to PHP400 millones.

We will follow the regulatory process and asset-sale developments related to casinos, tracking decisions by the GCG and the Office of the President and the evolution of expressions of interest for Casino Filipino venues. Also consult our [regulation](/regulation) section and the [casino](/casino) market for additional analysis.