Tengco said PAGCOR is currently awaiting the completion of a comprehensive review by the Governance Commission for Government Owned and Controlled Corporations (GCG), and is seeking approval for its proposed “decoupling” process as early as next year.

Full Exit from Casino Operations

Under the decoupling plan, PAGCOR would exit casino operations entirely and focus solely on regulation, issuing licenses and collecting regulatory and license fees from private operators.

Once GCG approval is secured, the proposal will be submitted to the Office of the President, with the transition likely to be formalized through an executive order or amendments to existing directives.

Tengco noted that the timeline will depend on the pace of regulatory approvals, but reiterated that the transition could be completed by late 2026 or early 2027.

Revenue and Cost Implications

Privatization will fundamentally change PAGCOR’s revenue structure. Income from self-operated gaming will cease, with revenues shifting primarily to regulatory and licensing fees. Currently, around 70% of PAGCOR’s income is allocated to nation-building, a structure that is expected to change following privatization.

Financial results show that Casino Filipino’s self-operated casinos generated PHP3.22 billion (US$57 million) in revenue in Q3 2025, down 11.6% year-on-year, accounting for about 3.4% of total Philippine gross gaming revenue.

However, Tengco emphasized that operating expenses are expected to fall sharply after decoupling, as PAGCOR will no longer need to maintain casino staff or operate gaming facilities.

Modernization Ahead of Sale

At the same time, PAGCOR is prioritizing the modernization of Casino Filipino venues, including facility upgrades and new equipment purchases, to enhance asset value and operational standards ahead of a potential privatization.