Posted on: September 12, 2024, 12:24h.
Last updated on: September 12, 2024, 12:40h.
Philippines casinos owned by the government will remain under the state’s control until at least 2026.
The Philippines is home to both commercial and government-held casinos. The Philippine Amusement and Gaming Corporation(PAGCOR) regulates commercial gaming resorts in Manila and in special freeport zones. The agency also runs casinos under the Casino Filipino brand.
Lawmakers have for years called on Filipino presidents to divest the nation’s stake in managing gaming operations while simultaneously regulating its competitors. Many have said PAGCOR’s dual capacity presents conflicts of interest.
Former Philippines President Rodrigo Duterte flip-flopped on his pledge to sell off PAGCOR’s casinos on grounds that their operations provided too critical of a tax benefit, specifically in the aftermath of the COVID-19 pandemic. Duterte’s successor, President Ferdinand “Bongbong” Marcos, has since resumed the central government’s mission to divest the casino portfolio.
Liquidation Delayed
Earlier this year, PAGCOR Chairman Alejandro Tengco said the agency would unload its nine casinos and 33 satellite branches before the end of the first quarter in 2026. This week, Tengco pushed back on that statement and revealed that the selloff won’t even start until sometime in 2026.
In the interim, PAGCOR is investing in modernizing its Casino Filipino properties, many of which are outdated and in need of upgrades. Tengco believes such an investment will make the venues more attractive to prospective buyers and result in richer sales.
As we prepare for the planned privatization of PAGCOR casinos, we intend to increase their value by modernizing our gaming facilities and equipment to make them more attractive to potential investors,” the PAGCOR chief said on Tuesday during his keynote address at Inside Asian Gaming’s Academy Summit at the Hilton Manila.
Tengco detailed that PAGCOR has ordered 3,341 new slot machines that are commonly found in the multibillion-dollar integrated resort casinos in Manila’s Entertainment City to be installed in Casino Filipino’s premier properties. The first batch of 1,968 terminals is expected to be delivered this week.
Tengco additionally said PAGCOR will mandate that buyers of the Casino Filipino properties will be required to maintain a minimum of 50% of the acquired venue’s workforce for a certain period. Those who are let go will be required to receive severance packages based on their length of employment.
PAGCOR Casino Revenue
PAGCOR’s gaming operations pale in comparison to the integrated resorts in Manila.
In the second quarter, Casino Filipino locations generated gross gaming revenue of approximately PHP8.29 billion (US$147.5 million). During that same April through June period, Manila’s City of Dreams, Solaire, Okada, and Newport World Resorts produced GGR of PHP40.3 billion (US$717.1 million).
Commercial casinos in Fiesta, Clark, and Greenfield respectively won $6.4 million, $119.5 million, and $37.5 million. The three freeport zones have seen a gaming surge in recent years, with China’s crackdown on money moving through Macau and the casino enclave’s decision to rid junket groups from the market credited for the boom.
The influx of Chinese high rollers has Filipino gaming magnates bullish on the industry. This week, Travellers International Hotel Group and Alliance Global, the parent companies of Newport World Resorts, revealed their intentions to open casino resorts in Boracay and Cebu.