PAGCOR is targeting an exit from casino operations in the third or fourth quarter of 2027, with preliminary disposal proceeds estimated at PHP20 billion to PHP30 billion. The latest comments turn its long-discussed separation of commercial and regulatory functions into a more concrete acquisition prospect for Philippine casino operators.
The timetable remains conditional on government approval. The Philippine Star reported on 14 October 2026 that chairman and CEO Alejandro Tengco expects the Governance Commission for Government-Owned or -Controlled Corporations to submit its recommendation to the President within October. His comments were made in Boracay around the opening of Kaban Hotel and Casino.
A network with different ownership and operating arrangements
The Star puts the network at 35 casinos: 12 operated directly by PAGCOR and 23 covered by revenue-sharing arrangements. Tengco said existing licensees, including Entertainment City operators, had expressed acquisition interest. That is an indication of appetite, rather than confirmation of bids or agreed transactions.
Context.ph’s 13 October account adds that PAGCOR would appoint a financial adviser to finalise valuations after presidential approval. It reported a proposed right of first refusal for partners running the revenue-sharing locations, while the directly owned properties would be offered to potential bidders. Those arrangements should be assessed against formal sale documents when issued.
Losses put urgency behind the disposal
Tengco projected Casino Filipino losses of at least PHP7 billion for 2026, versus approximately PHP6 billion in 2025, according to the two Philippine reports. These are management statements and a current-year forecast, rather than an audited full-year 2026 result.
Context.ph also describes a commercial model at Kaban Boracay under which the operator pays PAGCOR 35% of gross gaming revenue and carries its own employee salaries. Tengco suggested the structure could be used elsewhere. Its appeal to PAGCOR is clear: retain revenue participation while reducing payroll exposure. Whether that model forms part of the eventual disposal structure remains to be established.
The institutional process predates this week’s figures. In its 15 September announcement, PAGCOR said the proposal was under GCG review and that presidential acceptance would lead to an Executive Order implementing separation. The new October recommendation window and 2027 exit target sharpen that earlier outline; they do not amount to approval.
Our view: the opportunity is in the individual assets
Our view is that buyers will evaluate this network location by location. A headline valuation cannot answer whether a particular casino offers attractive local demand, workable lease terms, manageable staffing obligations or a useful addition to an existing portfolio.
For operators, equipment suppliers and advisers, the next commercially useful disclosures are the asset perimeter, sale mechanism, employee treatment and operating permissions after transfer. We expect those details to determine serious buyer interest more reliably than the aggregate proceeds target.
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