PAGCOR proceeds with casino privatisation amid revenue slump tied to Middle East conflict
2026-07-20
Source: iGaming Expert
PAGCOR is proceeding with plans to privatise its casinos as Middle East tensions drag down revenues, with a recommendation due to the President in August and an Executive Order expected by year-end. The regulator's own casinos saw GGR drop to P3.17bn in Q1 2026, and Tengco blames the war for lost tourists and VIP players.
The Philippine Amusement and Gaming Corporation (PAGCOR) is moving forward with plans to divest its casino operations and transition to a purely regulatory role, ending the government's five-decade-long involvement in direct casino ownership. According to a report by the Philippine Star, PAGCOR Chair and CEO Alejandro Tengco informed journalists that the Governance Commission for GOCCs (GCG) will submit its formal recommendation to the Office of the President this August. The privatisation is expected to be enacted through an Executive Order by the end of the year.
Privatisation timeline
PAGCOR’s portfolio currently comprises nine full casinos and 35 satellite gambling venues. The decoupling initiative would require the government to sell or spin off these properties, a process that began with a single floating casino aboard the MS Philippine Tourist in 1977. Tengco stated that the President's office would study the GCG’s proposal before issuing the order that sets the final timeline.
Financial pressures from geopolitical tensions
The push for privatisation comes as PAGCOR’s casino division suffers from declining revenue, which Tengco attributes directly to the ongoing Middle East conflict. Gross gaming revenue from PAGCOR-operated casinos fell to P3.17bn in the first quarter of 2026, down from P3.45bn in the same period of 2025. Overall corporate revenue for the first quarter stood at P104.12bn (£1.26bn), a drop of 15.87% year-on-year.
Tengco confirmed that the second consecutive quarter of poor financial performance is underway, although no Q2 figures have been released. “There are no tourists. There are no VIP players because of the war,” he said, also noting that online gaming revenues have been squeezed as lower-income groups (classes C and D) bear the brunt of the economic fallout from the crisis. Immediate relief appears unlikely, with US-Iran tensions escalating after the deaths of two American service members in Jordan and continued US airstrikes.