In the Philippines, the Department of Finance (DOF) is willing to assist in the sale of casinos owned and operated by the Philippine Amusement and Gaming Corp. (PAGCOR).
Finance Undersecretary Catherine L. Fong recently told BusinessWorld that the department is “waiting for PAGCOR’s cue.” She added that it’s “very feasible” that the casinos could be ready for sale by 2025.
PAGCOR Chairman Alejandro Tengco “asked for time to organize the transition and increase cash flows to the casinos for higher value sales,” Fong told the news outlet. “Once PAGCOR is ready, we can acquire independent appraisals to set a base price for auction.”
Tengco recently commented that his administration, which has been in office for a year, “has more than enough time of accomplishing our goals of being more dynamic, more profitable and more focused as a purely regulatory corporation.” PAGCOR has been repeatedly criticized for operating as both an operator and a regulator, a dual role that detractors have called a conflict of interest.
Antonio A. Ligon, law and business professor at De La Salle University, said the move toward a sale is a “welcome development. Drawing of lines as to the responsibilities will be relevant and necessary to avoid conflict of interest.
“Crucial in the transition will be the personnel and the necessary system operations. It will be a good opportunity to come up with streamlined operation structures, together with a corrupt-free mechanism.” he said.
Tengco has said that PAGCOR hopes to generate PHP80 billion (US$1.41 billion) from the sale of its 41 casinos, which include nine under the Casino Filipino brand and 32 operating as satellites in venues leased from third parties.
In July, he said the regulator will “upgrade these gaming venues to add value to these properties.” The plan includes modernizing the casinos’ IT and cybersecurity systems; upgrading some 3,000 electronic gaming machines (EGMs); and establishing new technical standards for EGMs.
Tengco has said the privatization “is now at the forefront of our master plan, with PAGCOR shifting its energy towards a purely regulatory role.”
