PAGCOR Closes Two Casino Sites for Performing Poorly
The Philippine Amusement and Gaming Corporation (PAGCOR) has closed two Casino Filipino locations in Talisay, Cebu, and Tagum, Davao del Norte, due to their poor financial performance.
LISTEN TO THIS ARTICLE:As revealed by PAGCOR Chairman and CEO Alejandro Tengco, the casino at Talisay suffered high net losses that surged from Php39.32 million ($672,000) in 2023 to Php49.56 million in 2024.
The Tagum casino also struggled financially, with net losses rising from Php31.56 million in 2023 to Php36.93 million in 2024.
Faced with the mounting losses, PAGCOR made the decision to cease operations at the underperforming sites. However, the agency has ensured that the shutdowns will not compromise the job security of its personnel. PAGCOR's Human Resource and Development Group is reportedly working closely with affected employees to secure suitable reassignments.
Path to Privatization
PAGCOR’s closure of the sites is in line with its strategic plan to optimize its gaming operations, following a banner year in 2024 that saw the agency generate a record Php112 billion in revenue, driven in part by the strong performance of electronic games.
The development comes as PAGCOR gears up for its privatization process, set to begin in early 2026. The assets sale was initially set for the middle of this year but was postponed due to several factors, including PAGCOR charter amendments, and the need for modernization of the Casino Filipino brand properties.
Last September, PAGCOR purchased over 2,000 slot machines for its Casino Filipino locations in a bid to attract more visitors and boost the venues’ profitability ahead of the privatization.
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Tax Rate Deduction
While PAGCOR is state-owned and controls the highest stakes in the Philippines' gaming industry, it is not the only one operating in the market. The country is also home to several private casino operators and gaming establishments.
Last month, PAGCOR implemented a new reduction in tax rates for online gaming operators to further ease regulatory fees in the country. The fees for electronic games (E-Games) operators were lowered to 30% from 35%.
Fees for operators running online casinos in the Philippines from integrated resorts were further lowered to 25%.
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