Philippines' PAGCOR puts casino privatization plans on hold
The Philippine Amusement and Gaming Corporation (PAGCOR), a government-run entity, has announced that it is postponing its casino privatization plans until 2026.
This decision comes in the context of discussions on revising PAGCOR’s charter to completely rethink how it operates and what it does. The privatization of PAGCOR has been a major concern for the Philippine gaming industry and economy.
Background and reasons for the delay in privatization
PAGCOR has played a significant role in the national income of the Philippines for many years and is one of the main revenue-generating agencies of the government. However, criticism has been raised about PAGCOR’s dual role of operating casinos while also acting as a gaming regulator.
The privatization delay comes amid ongoing legal strife over the revision of PAGCOR’s charter . “In order to enhance the efficiency and transparency of the casino industry, the legal framework for PAGCOR’s structure and role must be established first,” a government official said. There were also concerns that privatization could cause confusion if it were to proceed before the revision of the charter is completed.
Privatization strategy after 2026
Under the decision, PAGCOR plans to maintain its casino assets and continue its existing operations until 2026. In the meantime, the separation of roles between the regulator and the business operator under the revised charter will be fleshed out. With the establishment of a new regulator or the adjustment of PAGCOR’s role, the Philippine casino industry is expected to operate under a clearer regulatory framework.
The delay could also have an impact on attracting private investors . PAGCOR said that “in the long run, privatization will increase the competitiveness of the Philippine gaming industry and be a positive signal for attracting investment,” but some experts warned that the delay could dampen investor interest.
Economic impact and government position
The privatization of casinos is expected to bring significant changes to the Philippines' fiscal revenues . The casinos operated by PAGCOR have been generating huge profits every year, and these profits have been used for various public projects such as social welfare and infrastructure development. If privatization is carried out, the government will rely on taxes and licensing revenues instead of direct revenues.
The government announced that it will pursue industrial transformation and economic preparation together during the grace period until 2026. A new tax reform is being considered to compensate for the decrease in PAGCOR’s revenue, and a plan to develop the casino industry in conjunction with tourism is also being discussed. The Department of Tourism is strengthening its plan to develop high-end resorts centered on casinos, aiming to attract foreign tourists.
Reactions from game industry stakeholders
The announcement of the privatization delay has received mixed reactions from industry and investors . Some private companies have expressed concerns that the prolonged operation of PAGCOR’s casinos could limit market competition . On the other hand, some casino operators working with PAGCOR have welcomed the government’s decision, saying, “It is better to have structural changes first than unprepared privatization.”
An industry insider emphasized the need for a cautious approach, saying, “Casinos directly operated by PAGCOR are an important economic resource in the Philippines, and hasty privatization could easily lead to chaos.”
Future changes and challenges brought about by privatization
The Philippine government aims to establish a transparent and fair regulatory system even after privatization in 2026. To this end, there are concerns that PAGCOR could be fully converted into a regulatory body , or a new independent regulatory body could be established.
The Philippines also plans to innovate across the industry to compete with international gaming hubs such as Singapore and Macau . PAGCOR will continue to improve services and expand facilities at existing casino facilities until privatization is complete, and focus on maintaining the attractiveness of the Philippine casino industry.
Social contribution and the prospects after privatization
PAGCOR has been contributing to education, health, and infrastructure development through casino revenues. There are concerns that these contributions may be reduced after privatization, but the government has promised to continue its existing social contributions through increased tax revenues from privatization. In particular, casino revenues will play a significant role in supporting local governments and the tourism industry .
After privatization, the Philippines will have the opportunity to strengthen the competitiveness of the casino industry and maximize synergy with the tourism industry, along with a new investment environment . It will be interesting to see what structural changes the government and PAGCOR will bring about during the grace period until 2026.
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