September 12, 2024 | 12:00am
MANILA, Philippines —The plan to privatize some 40 casinos of state-run Philippine Amusement and Gaming Corp. (PAGCOR) may be pushed back to early 2026 amid the need to amend its charter.
PAGCOR chairman and CEO Alejandro Tengco said the gaming agency remains committed to its goal of focusing more on its regulatory role, with the privatization process to start by early 2026.
This is a delay from the earlier plan of completing the process by mid-2025.
“We still have to amend the charter of PAGCOR. So next year will be allocated for the amendments,” Tengco said.
“Also, there are a lot of things to do. It’s not as easy as we thought it would be. And our priorities include modernization, the lessors,” he said.
As things currently stand, PAGCOR continues to have a conflicting role as it regulates, authorizes and licenses games of chance, games of cards and games of numbers, particularly casino gaming in the Philippines.
At the same time, it also operates about 40 casinos nationwide.
The sale of PAGCOR casinos is expected to earn about P50 billion, slightly lower than the P60 billion to P80 billion earlier estimates.
“Initially, I thought it was going to be big. But unfortunately, I realized that we do not own any property, we’re just leasing,” Tengco said.
“What we are selling here is the license and future revenue. So, the minimum is around P50 billion,” he said.
Further, PAGCOR will not be spending any amount for the renovation of casinos to be sold because it is just renting.
Instead, the agency reached an agreement with lessors who started the renovation of gaming venues and other game offerings to increase foot traffic and overall profitability of Casino Filipino venues.
The agency also started modernizing gaming facilities and equipment. In particular, nearly 2,000 units of new and modern slot machines for Casino Filipino venues will be delivered by the middle of this month.
“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,” Tengco said.
The almost 2,000 units are part of the total 3,341 new slot machines ordered by PAGCOR.
Also part of PAGCOR’s privatization plan is to further professionalize the gaming industry by establishing a Gaming Academy that will help address the growing demand for skilled gaming and hospitality professionals.
This will be done by forging partnerships with Asian gaming education providers to create a consortium that caters not only to the Philippine workforce but also to all who wish to build a career in gaming in other jurisdictions.
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