TLDR
- PAGCOR chairman Alejandro Tengco expects the government to approve separating the agency’s regulatory role from its casino operations.
- Casino Filipino has lost ₱6 billion ($95 million) so far in 2026, and losses are expected to reach ₱7 billion ($111 million) by year end.
- Some integrated resort companies want to buy selected Casino Filipino branches if the separation is approved.
- The Philippine gaming industry is now expected to earn about ₱350 billion in 2026, below its ₱400 billion target.
- A Supreme Court ruling requires PAGCOR to pay 5% of its gross revenue to the Philippine Sports Commission, backdated to 1993.
The head of the Philippine Amusement and Gaming Corporation (PAGCOR) says he is confident the government will approve a plan to split the agency in two. The plan would separate PAGCOR’s job as a gaming regulator from its role as a casino operator.
Chairman and CEO Alejandro Tengco spoke to local reporters this week. He was at the grand opening of the Kaban Hotel and Casino Boracay, which is currently the only casino on the island.
The push comes as losses at Casino Filipino, PAGCOR’s casino brand, are expected to reach ₱7 billion, or about $111 million, in 2026.
Tengco said the Commission for Government-Owned or Controlled Corporations (GCG) will likely recommend the proposal to the Office of the President. The plan has not yet been approved.
He first shared this position at the IAG Academy Summit in Manila in early September. At that time, he said he was confident President Ferdinand Marcos Jr. would approve the plan.
Casino Filipino Losses Continue to Grow
Casino Filipino runs nearly 40 casinos across the Philippines. The brand has already posted losses of ₱6 billion, or about $95 million, so far this year.
Tengco expects that figure to rise before the year ends. According to the Manila Bulletin, he called the proposed separation the necessary direction for the brand.
Rising operating costs have added to the losses. Competition from the country’s large integrated resorts has also put pressure on the brand.
Tengco said some integrated resort companies are interested in buying certain Casino Filipino branches once the separation is approved. Their interest covers selected branches, not the entire network.
Gaming Revenue and Earnings Fall Short
Tengco also said the Philippine gaming industry is unlikely to meet its 2026 gross gaming revenue target of ₱400 billion, or about $6.36 billion.
The industry is now expected to bring in around ₱350 billion, or about $5.57 billion. Domestic and global headwinds have hurt both land-based and online gaming.
PAGCOR’s own net income is expected to fall below ₱5 billion, or about $79.5 million. Lower industry revenue is one reason for the drop.
A recent Supreme Court ruling is another. The ruling requires PAGCOR to pay 5% of its gross revenue to the Philippine Sports Commission, with the obligation backdated to 1993.
This payment is separate from the losses at Casino Filipino. Both are weighing on the agency’s earnings outlook.
If the plan is approved, the formal process of separating PAGCOR’s two roles could begin. Until then, the agency continues to both regulate the industry and run casinos.
For now, the proposal awaits a recommendation from the GCG and a final decision from President Marcos. Tengco said this week he expects both steps to support the separation.
