According to a report by local media outlet BusinessWorld, a senior official from the Philippines’ Department of Finance has indicated that the sale of the Philippine Amusement and Gaming Corp’s (Pagcor) network of state-owned casinos by 2025 is “very feasible.” The Department of Finance is prepared to facilitate the privatization of Pagcor’s gaming operations once the organization transitions into a pure regulatory body for the sector.
1. Feasibility and Auction Base Price
Catherine L. Fong, the Department of Finance’s undersecretary, emphasized the viability of completing the sale by 2025. She stated that once Pagcor is prepared, the department could acquire independent appraisals to establish a base price for the auction, setting the stage for the privatization process.
2. Organizing the Transition and Enhancing Value
Fong highlighted that the Department of Finance is awaiting Pagcor to organize the transition process while focusing on increasing cash flows to its self-managed casinos. This strategic approach aims to elevate the value of the casinos, ensuring higher-value sales during the privatization.
3. Pagcor’s Plan and Expectations
In March, Alejandro Tengco, the head of Pagcor, unveiled the plan to sell the network of small, state-owned casinos. The goal was to raise up to PHP80 billion (US$1.41 billion) from the sale of the Casino Filipino-branded chain of public-sector casinos. Mr. Tengco also emphasized the need to upgrade these gaming venues to enhance their value before initiating the disposal process.
4. Targeted Completion by 2025
Reiterating the timeline for transition, Mr. Tengco mentioned that the process to shift the focus of Pagcor from operational functions to regulatory work is expected to conclude by 2025. This signifies a strategic shift aligning with the goal of privatizing the state-owned casinos for a more streamlined regulatory approach.
The Philippines envisions a significant transformation in its gaming sector, with the potential privatization of Pagcor’s casinos representing a key initiative. The move is set to not only streamline regulatory efforts but also enhance the overall value and efficiency of the gaming industry in the country.