PAGCOR Moves Toward Casino Exit With Planned Sale of 35 Venues

Philippine Amusement and Gaming Corporation officials announced plans to sell all 35 Casino Filipino venues as part of a broader strategy to exit direct casino operations by the third or fourth quarter of 2027, and the preliminary valuation for the portfolio sits between PHP20 billion and PHP30 billion which converts to roughly $318 million to $477 million at current exchange rates. Twelve of the properties are wholly owned while the remaining 23 operate under revenue-sharing agreements, and the sale would transfer both categories to private buyers once government approvals clear.

Financial Pressures Driving the Decision

Projected losses form the immediate backdrop for the move, with the state-run chain expected to post deficits of at least PHP7 billion in 2026 compared with approximately PHP6 billion in 2025, and rising personnel expenses represent the largest single factor behind the widening gap. Data from internal forecasts show that these costs have climbed steadily even as revenue from gaming tables and machines has faced increased competition from newer integrated resorts and online platforms.

Observers note that the separation of commercial activities from regulatory functions has been under discussion for several years, and the current timeline places full divestment in the latter half of 2027 once the Governance Commission for Government-Owned or -Controlled Corporations and President Ferdinand Marcos Jr. grant final sign-off. The commission reviews all major asset sales involving state corporations, while the president's approval is required for transactions of this scale.

Scope of the Portfolio and Valuation Process

The 35 venues span key urban and provincial locations across the archipelago, and the mix of wholly owned sites alongside revenue-sharing locations creates a layered ownership structure that potential buyers must navigate during due diligence. Preliminary figures released in October 2026 reflect asset values, ongoing revenue streams, and lease obligations rather than a final transaction price, and interested parties will conduct independent audits before submitting binding offers.

According to statements from PAGCOR representatives, the divestment process will unfold in phases so that regulatory oversight remains uninterrupted while ownership transfers occur, and the agency intends to retain its licensing and compliance roles after commercial operations cease. This structure mirrors similar transitions seen in other jurisdictions where government bodies have stepped back from direct ownership while preserving supervisory authority.

Approval Pathways and Timeline

Multiple layers of review stand between the current announcement and completed sales, starting with the Governance Commission for Government-Owned or -Controlled Corporations which evaluates the fairness of the valuation and the impact on public finances. President Marcos must then endorse the transaction before any binding contracts can be signed, and industry analysts expect the full sequence to extend through most of 2027 given the complexity of the portfolio.

Revenue-sharing agreements attached to 23 of the venues add another dimension because private partners already hold stakes in those locations, and negotiations will determine how those contracts convert or terminate upon sale. PAGCOR has indicated that buyer selection will prioritize entities with proven track records in responsible gaming and regulatory compliance, though final criteria remain subject to commission guidelines.

Operational Continuity During Transition

Staffing arrangements represent a key concern during the wind-down period, and personnel expenses that contributed to the projected losses will remain a focus as the agency prepares workforce transition plans. Existing employees at the 35 venues may transfer to new operators or receive separation packages depending on the terms negotiated with buyers, and PAGCOR has committed to transparent communication throughout the process.

Regulatory functions tied to licensing, auditing, and enforcement will continue without interruption, and the agency has already begun internal restructuring to isolate those responsibilities from commercial activities. Data collected from current operations will inform post-sale oversight models that apply to private operators once the transition concludes.

Conclusion

The planned divestment marks a structural shift for PAGCOR as it prepares to exit casino ownership while retaining its regulatory mandate, and the sale of the 35 venues at the stated valuation range will depend on approvals from the Governance Commission and the Office of the President. Projected losses of PHP7 billion in 2026 underscore the financial drivers behind the timeline that targets completion in the third or fourth quarter of 2027, and the process will unfold through phased negotiations that address both wholly owned and revenue-sharing properties. Further updates are expected as the commission review advances and potential buyers conduct their assessments.