Recommendation on separation of Casino Filipino due this month, says Tengco

The Governance Commission for Government-Owned or Controlled Corporations (GCG) will this October 2026 send a recommendation to Office of the President Ferdinand Marcos Jr on whether to proceed with the separation — or “decoupling” — of the Casino Filipino chain from the state regulator and operator Philippine Amusement and Gaming Corp (Pagcor). Alejandro Tengco, Pagcor president and chief executive officer, said this during the opening of the Kaban Hotel and Casino on the tourist island of Boracay and was quoted by the Manila Bulletin and the Philippine Star.

## Status of the recommendation on the separation of Casino Filipino

Tengco said the GCG prepared its report and that the formal decision will be sent “within October” to the Office of the President. Pagcor had already indicated the prior month that the GCG would likely conclude its deliberations “very soon.” The government regulator’s recommendation will be the administrative step that precedes any presidential authorization to proceed with the unbundling of the state-owned chain.

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

## Timeline and Pagcor’s operational objective to exit as operator

Pagcor seeks to withdraw from its role as casino operator and complete the divestment of Casino Filipino in the third or fourth quarter of 2027, subject to government approval, the Philippine Star reported. The plan would involve full or partial privatization of the venues the public agency currently manages.

Press reports cited by Pagcor estimate that privatization could generate at least PHP20 000 000 000 (approximately US$318.8 million) in potential proceeds for the State. Tengco said some of Pagcor’s “existing licensees” have shown interest in acquiring Casino Filipino sites, although no buyers or commercial terms have been announced.

## Operational results and losses of the Casino Filipino group

Tengco said Casino Filipino recorded losses of around PHP6 000 000 000 in 2025 and that the figure is projected to rise to PHP7 000 000 000 for the full year 2026. On Pagcor’s aggregate financial position, the executive admitted gross gaming revenue could miss initial targets and that the institution faces a significant contraction:

• The gross gaming revenue (GGR) target for the Philippines in 2026 was approximately PHP400 000 000 000, but Tengco said the most likely outcome is above PHP350 000 000 000.

• Pagcor expects its net income could fall below PHP5 000 000 000, compared with nearly PHP17 500 000 000 in 2025.

Tengco summed up the operational pressure with a stark phrase, quoted by the Philippine Star:

"Casino Filipino is bleeding like mad," said Alejandro Tengco, referring to the high cost of maintaining staff and operations.

## Current network structure and transfer options

According to reports, Pagcor manages a network of 35 casinos in the Philippines: 12 operated directly by the agency and 23 under revenue-sharing agreements with private partners. Any unbundling process must specify which venues will remain under private management, which will go to existing licensees, and how revenue-sharing contracts will be treated.

Several practical points must be resolved before any sale or transfer:

1. Confirmation of the list of assets to be privatized.

2. Evaluation of potential buyers, including current licensees.

3. Final government approval after the GCG’s recommendation.

## Added fiscal burden from court ruling and its cash impact

Tengco also noted that a recent Supreme Court ruling requires Pagcor to pay the 5% of its gross revenues to the Philippine Sports Commission for reporting years dating back to 1993. Before the ruling, Pagcor remitted about PHP180 000 000 monthly in subsidies; after the judgment the figure rose to around PHP400 000 000 monthly. The jump in outflows complicates the agency’s liquidity position and is one reason supporting the decision to sell assets.

## Implications for regulation and the market

Execution of the separation of Casino Filipino would have regulatory and market effects. If the GCG and the Office of the President approve the recommendation and Pagcor follows the proposed 2027 timetable, the transition would convert part of the state offer into private assets. That will affect local competition and relationships with licensees that currently operate under revenue-share schemes.

For compliance and regulatory matters, stakeholders should monitor the formal steps taken by the GCG and the Office of the President, as well as license transfer requirements and the possible restructuring of contracts with employees and suppliers. This process is also relevant for suppliers and platforms that serve physical and digital venues; see the regulation section and the casino news for future follow-ups.

## What happens next

The immediate chronology is the GCG’s recommendation being received in October 2026 and the presidential assessment. If the recommendation is favorable, Pagcor will work on privatization terms and an operational timetable to withdraw its operator role in 2027. If the recommendation is unfavorable, the political-administrative scenario could include internal restructuring alternatives or other recovery measures.

The sources used in this coverage were the Manila Bulletin and the Philippine Star, which published direct statements from Pagcor CEO Alejandro Tengco during the opening of the Kaban Hotel and Casino in Boracay.