In a significant announcement, the Philippine Amusement and Gaming Corporation (PAGCOR) has revealed that it intends to privatize casinos by the third quarter of 2025. This was announced by Chairperson Alejandro Tengco during the national budget deliberations, saying this was a significant change in strategy. It aims to extract more value from these properties by not operating them through government.
Beyond structure, this is a signal that the way in which the Philippines administers its gaming sector is changing. As PAGCOR shifts its focus strictly toward regulation, the consequences for casino operators, investors, and the betting sector are significant.
PAGCOR’s Motivation Privatize Casinos
For many years, PAGCOR has been in a dual capacity acting both as a regulator and as an operator. This arrangement has drawn criticism because of conflicts of interest. PAGCOR is taking a cue from policymakers and industry observers by electing to privatize casinos.
Rep. Edwin Olivarez, 1st District, observed that offshore operators supervised by PAGCOR have persistently been more lucrative than government-owned casinos. The argument for privatizing casinos such assets already draws on this performance gap to claim that the assets could be managed more efficiently, and therefore profitably, in private hands.
Other Perspectives and Concerns About Selling Profitable Assets
Not all lawmakers, however, are sold on privatizing casinos, despite the potential benefits. The representative, Rufus Rodriguez of Cagayan de Oro, also expressed concerns over the sale of earning assets. He asked why PAGCOR would divest from a sector that was projected to yield even higher returns in the coming years.
His worries are not unwarranted. PAGCOR’s Revenue for 2022 was over $1 billion. That figure is expected to reach $1.33 billion in 2023, and also $1.41 billion in 2024. Rodriguez worries that the sale of those assets would upset a reliable source of government funds.
A Strategic Shift Toward Pure Regulation and Global Standards
PAGCOR’s transition to a strictly regulatory role aligns with global standards in gambling regulation. Dual roles are being abandoned in many jurisdictions in favor of regulatory structures that are transparent and accountable. “The end game of PAGCOR is actually to stop operating casinos at all, because the only role that we want PAGCOR to play is as a regulator,” said PAGCOR Chairperson Tengco.
PAGCOR’s exit operations, according to the office, will enhance transparency, eliminate perceived conflicts, and simplify oversight responsibilities. Theoretically, this transition should create a healthier, more competitive environment for private casino operators.
What This Means for the Worldwide Wagering Industry
The privatize casinos and the wider implications, especially for international interests in the gaming space, could have lasting repercussions. Changes in legislation in significant markets such as the Philippines tend to have a knock-on effect on the global betting market.
These changes could open up new avenues of business for bookies and betting platforms. A more predictable and transparent regulator might offer the consistency many operators seek when choosing jurisdictions. Investors and bookmakers will want to watch how the privatization process plays out.
Fuel Innovation and Growth
Privately run privatize casinos typically have flexibility to innovate, adopt technology and cater to customer experiences. Privatization of these PAGCOR-run casinos, however, could result in better quality services, improved entertainment offerings, and a broader scope in capturing international tourism markets — if done properly.
Moreover, separating PAGCOR from operational functions will free up the agency to invest more resources in regulation, compliance and enforcement — activities that are in the best interest of the industry, and its reputation and player trust.
A Game Changer in the Philippine Gambling Landscape
The Philippines’ decision to privatize casinos is a turning point as the nation straddles the best of regulation and the worst of commercial opportunity. If done right, this move could transform the country’s gambling ecosystem — bringing in international operators, spurring competition and improving government oversight.
However, the agency must also manage the transition to ensure some level of market stability. Integrity and public trust will need to be underpinned by clear policies, fair bidding processes, and long-term oversight structures.
THE BIG IDEA: Why the push to PAGCOR’s Casino Reform
The 2025 privatize casinos plan fits within the Philippines’ larger goal of modernizing and professionalizing its gambling industry. Time will tell if there are revenue consequences; there is of course always a concern with a transition this large, but there’s also a chance for a far more transparent, efficient, and globally competitive system.
For operators, investors and bookmakers alike, this is a moment to pay attention, and prepare. As PAGCOR’s role evolves, offers both challenges and opportunities on how to scale in a regulated environment.
