The Philippine casino industry has long been vital to the nation’s economy, generating revenue for other public services. Regulated by the Philippine Amusement and Gaming Corporation (PAGCOR), the gambling industry is poised for a transformative era as privatization is now in motion.
PAGCOR operates under a dual mandate: regulating private gaming establishments and managing government-owned casinos. While this structure has historically allowed PAGCOR to generate substantial revenue for the government, it has also led to concerns about conflicts of interest.
Philippine Casino Market
The Philippine casino market has seen a complete recovery following the COVID-19 pandemic. In 2022, the sector reported revenues of $3.3 billion, nearing pre-pandemic levels. Integrated resorts, such as the mega casinos in Entertainment City, continue to attract tourists and produce substantial revenue for the country.
However, critics have argued that government-operated casinos are less efficient than private casinos. This inefficiency has fueled debates on whether privatizing state-owned casinos could enhance profitability and operational standards.
Privatization Plans
PAGCOR chairman Alejandro Tengco has reiterated that the regulator will privatize PAGCOR-operated casinos by 2026, potentially generating an estimated $1.5 billion in proceeds from the sale. Privatization advocates believe this move would streamline the industry by removing PAGCOR’s operational responsibilities, enabling it to focus solely on regulation.
Despite these potential benefits, challenges remain. Experts, including Morgan Stanley, have highlighted concerns about the high asking price for state-owned casinos, which may deter prospective buyers. Additionally, privatization could reduce government revenues in the short term, a problem for policymakers relying on gaming income to fund public programs. PAGCOR has updated its facilities with new games and state-of-the-art technologies to ensure it gets the most out of its owned casinos.
The Future Of Online Casinos In The Philippines
Domestic and legal online casinos are allowed to operate online in the Philippines. Recently, the Philippines ended its offshore gaming operations due to backlash and abuse by unlicensed operators.
PAGCOR had previously announced they would release a state-of-the-art 3D online casino under the Casino Filipino brand in 2024, but the site has yet to go online. Despite warnings of illicit online casinos targeting PH players, online casinos licensed by reputable oversight will continue until new gambling laws are enacted. The Philippines has expressed no interest in banning offshore casinos, but President Marcos is a wild card when it comes to legal gambling.