Study Warns PAGCOR Casino Sale Could Cut Healthcare Funding by Up to PHP2.1bn Annually

A legal analysis from Philippine firm Geronimo Law estimates that PAGCOR’s planned sale of Casino Filipino properties could slash annual contributions to the country's Universal Health Care (UHC) program by between PHP1.7bn and PHP2.1bn ($27.5m–$34m). The figure adds a financial dimension to the ongoing debate over the Philippine Amusement and Gaming Corporation’s restructuring.

The study examines the implications of PAGCOR’s proposed exit from casino operations to become a dedicated regulator. While separating commercial and regulatory functions would remove a conflict of interest and reduce operating costs, the report argues it would also eliminate a steady revenue stream earmarked for public health.

Under Republic Act 11223, half of PAGCOR’s remittances to the National Treasury are allocated to PhilHealth for universal health coverage. Casino Filipino contributed PHP3.02bn in 2024 and PHP2.47bn in 2025 to this program. The study notes that after privatization, PAGCOR’s contribution would shift from direct gaming revenue to license fee income, which is expected to be significantly lower.

Geronimo Law calculated that privatized casino operators would need to more than triple their gross gaming revenue for license fees alone to match the current UHC allocation. The warning comes as PAGCOR advances its decoupling timeline. Chairman and CEO Alejandro Tengco has stated that the Governance Commission for Government-Owned and Controlled Corporations is expected to submit a recommendation to the Office of the President in the third quarter, with an executive order anticipated before year-end.

Around 40 Casino Filipino properties are slated for sale between late 2026 and 2027, with full regulatory decoupling targeted for 2028. PAGCOR has estimated the divestment could generate between PHP30bn and PHP50bn, but Geronimo Law notes that those sale proceeds would not flow to UHC, as the statutory allocation applies only to gaming income, not asset sales.

The report represents a specific perspective in the broader policy debate. While separating PAGCOR’s regulatory and commercial roles has long been considered a governance improvement, the firm argues policymakers must address how to replace the recurring healthcare funding currently derived from Casino Filipino operations. PAGCOR remains a major contributor to state revenues, having ranked as the fifth-largest dividend remitter among Philippine government-owned corporations after sending PHP5.67bn to the National Government from its 2025 earnings.