Pagcor says GCG will advise on Casino Filipino decoupling this month

The Governance Commission for Government-Owned or Controlled Corporations (GCG) is expected to deliver, within October 2026, its recommendation to the Office of the President on whether to approve the “decoupling” of the Casino Filipino chain from the Philippine Amusement and Gaming Corp. Alejandro Tengco, chairman and chief executive of the Philippine Amusement and Gaming Corp (Pagcor), gave the timing at a weekend event in Boracay while marking the opening of the Kaban Hotel and Casino.

What decoupling means for Casino Filipino and Pagcor

Pagcor operates as both the national regulator and, through Casino Filipino, as an operator of state-owned casinos. Tengco told the Manila Bulletin that the GCG will advise President Ferdinand Marcos Jr on whether it supports separating the operator arm from the regulator. He framed the decision as a necessary step toward disposal of the Casino Filipino outlets.

Pagcor currently manages a network of 35 casinos, the Philippine Star reported, comprising 12 venues directly run by the agency and 23 operated under revenue-sharing arrangements with private partners. Tengco said some of Pagcor’s existing licensees have shown interest in acquiring individual Casino Filipino outlets if the government approves a sale.

Timing and financials cited by Pagcor leadership

Tengco told reporters the commission’s recommendation is due this month. He previously said the Governance Commission for Government-Owned or Controlled Corporations was likely to conclude deliberations "very soon." The Philippine Star reported that Pagcor aims to exit its role as a casino operator by the third or fourth quarter of 2027, subject to government approval.

Both the Manila Bulletin and the Philippine Star cited potential proceeds of at least PHP20 billion (US$318.8 million) from privatising the Casino Filipino chain. Tengco described privatisation as the only viable path forward: "There’s no other way forward," the Manila Bulletin quoted him.

Losses, revenue and projected financial impact

Tengco said Pagcor’s Casino Filipino operations suffered around PHP6 billion in losses in 2025, and he expects that figure to increase to PHP7 billion for full-year 2026. He characterised the chain as "bleeding like mad," a comment the Philippine Star reported while noting the heavy cost of maintaining the Casino Filipino workforce.

On broader market figures, Tengco conceded that the Philippine market’s 2026 gross gaming revenue (GGR) may fall short of an initial target of about PHP400 billion, and could instead finish above PHP350 billion. He attributed the softer outlook to a domestic economic slowdown and the conflict in the oil-producing region of the Middle East.

Pagcor’s own profitability is under pressure. Tengco said the regulator’s net income could drop below PHP5 billion in 2026, down sharply from nearly PHP17.5 billion in 2025. "We would be fortunate to achieve a net income of PHP5 billion, as the industry has weakened amid headwinds such as the economic downturn," he was quoted saying by the Manila Bulletin.

Regulatory and fiscal headwinds affecting Pagcor

Tengco flagged a recent Supreme Court ruling that compels Pagcor to remit 5 percent of its gross revenue — covering reporting years back to 1993 — to the Philippine Sports Commission. Prior to that decision, Pagcor was remitting about PHP180 million a month in subsidies; the ruling increases the outflow to roughly PHP400 million a month, the Manila Bulletin reported.

Those additional obligations reduce funds available to sustain Casino Filipino operations and to support other Pagcor programmes. Tengco positioned the combination of operational losses and extra remittances as factors accelerating the case for divestment.

What operators and bidders may face if privatisation proceeds

If the GCG recommends decoupling and the Office of the President approves, Pagcor plans to seek private buyers for Casino Filipino assets. The Philippine Star said Pagcor is eyeing a full exit from operator status by Q3–Q4 2027, subject to approvals and transaction processes.

Potential buyers could include Pagcor’s existing licensees, Tengco indicated. Acquirers would take on venue-level staffing costs and legacy operational liabilities that Tengco warned have driven the chain’s recent losses. Transaction proceeds were described as being no less than PHP20 billion, though actual sale terms, valuation metrics and the timeline for individual asset disposals were not disclosed by Pagcor.

Market context and next steps

The announcement came at the opening of the Kaban Hotel and Casino on Boracay, an event Tengco attended. The outcome of the GCG recommendation will be a political as well as commercial decision: it requires the president’s office to accept the advice before any sale process can formally begin.

Operators and investors tracking the Philippine casino sector should watch for the GCG’s formal recommendation and any subsequent instructions from the Office of the President. The decision will determine whether Pagcor remains an active operator or proceeds with privatisation of Casino Filipino outlets over the coming year.

"Within October, the Governance Commission for Government-Owned or Controlled Corporations will make a recommendation to the Office of the President on whether it supports the decoupling or not," Pagcor chairman Alejandro Tengco said, according to the Manila Bulletin.

"Casino Filipino is bleeding like mad," Tengco told the Philippine Star, citing the cost of maintaining the chain’s workforce.

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