Casino Filipino ‘decoupling’ recommendation due this month: Tengco

A Philippine government commission is expected to make a recommendation to the office of President Ferdinand Marcos Jr within this month on whether “decoupling” of the Casino Filipino chain of gaming venues from the country’s regulator should go ahead. That is according to Alejandro Tengco (pictured in a file photo), chairman and chief executive of the regulator, the Philippine Amusement and Gaming Corp (Pagcor), as reported on Tuesday by the Manila Bulletin. He was speaking on the sidelines of weekend ceremony marking the recent opening of the Kaban Hotel and Casino on the holiday island of Boracay. He stated: “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.” Last month, the Pagcor boss had said the GCG was likely to conclude its deliberations on the matter “very soon”. The Philippine Star reported on Tuesday that Pagcor was looking to exit from its role as a casino operator by the third or fourth quarter of 2027, subject to government approval. The Manila Bulletin and the Philippine Star respectively cited potential proceeds of at least PHP20 billion (US$318.8 million) to be raised from privatisation of the Casino Filipino chain of state-owned casinos. “There’s no other way forward,” Mr Tengco was quoted by the Manila Bulletin as saying, regarding a path toward disposal. Both news outlets cited the Pagcor chief as indicating the regulator-cum-operator had incurred circa PHP6 billion in losses from its Casino Filipino operations last year, with the figure projected to swell to PHP7 billion for full-year 2026. “Casino Filipino is bleeding like mad,” he said, as quoted by the Philippine Star, citing the significant cost of maintaining the chain’s workforce. Nonetheless, Mr Tengco said some of Pagcor’s “existing licensees” were interesting in acquiring Casino Filipino outlets. According to the Philippine Star, Pagcor currently has 35 casinos in its network, including 12 operated directly by the agency and 23 under revenue-sharing arrangements with private partners. Mr Tengco also concede, as quoted by the Manila Bulletin, that the Philippine market’s 2026 gross gaming revenue (GGR) might not meet an initial target of approximately PHP400 billion, but could instead come in above PHP350 billion. That was amid a downturn in the country’s economy and conflict in the oil-producing region of the Middle East. Mr Tengco said Pagcor’s net income could fall below PHP5 billion, contracting sharply from nearly PHP17.5 billion in 2025. “We [Pagcor] 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. Per the Manila Bulletin, Mr Tengco said other headwinds for Pagcor included a recent Supreme Court ruling mandating Pagcor to pay 5 percent of its gross revenue – for reporting years going back to 1993 – to the Philippine Sports Commission. The official said that before the court ruling, Pagcor was remitting roughly PHP180 million a month in subsidies, but it now has to funnel roughly PHP400 million a month.