Casino Filipino Privatization Could Reduce Philippine Healthcare Funding

Privatization Plan Raises Healthcare Funding Concerns

The planned privatization of Casino Filipino, operated by the Philippine Amusement and Gaming Corporation (PAGCOR), could reduce funding for the Philippines' Universal Health Care (UHC) program by between P1.7 billion and P2.1 billion annually, according to an analysis by Geronimo Law.

The estimate is based on Casino Filipino's gaming revenues in 2024 and 2025 and highlights the potential financial impact of PAGCOR's transition from casino operator to gaming regulator.

Healthcare Contributions Linked to Gaming Revenue

Under the country's Universal Health Care Act, the Philippine Health Insurance Corporation (PhilHealth) receives 50% of the national government's share of PAGCOR's gaming income, providing a dedicated source of funding for public healthcare.

Based on Casino Filipino's performance, the UHC program received approximately P3.02 billion in 2024 and P2.47 billion in 2025 from the casino operations.

However, PAGCOR's long-term strategy is to privatize around 40 Casino Filipino branches, allowing the agency to focus exclusively on its regulatory responsibilities. The sale is expected to generate between P30 billion and P50 billion in proceeds.

License Fees May Not Offset Lost Revenue

Once the privatization process is completed, PAGCOR will no longer earn direct gaming revenue from Casino Filipino. Instead, it will collect licensing fees from private operators.

According to Geronimo Law, those fees alone are unlikely to replace the current funding stream.

The firm noted that privatized casinos would need to more than triple their gross gaming revenue (GGR) for license fee collections to compensate for the reduction in healthcare contributions currently generated through direct operations.

Industry Slowdown Adds Pressure

The concerns come as the Philippine gaming industry faces slower market performance. Gross gaming revenue fell nearly 16% year-on-year to P87.6 billion during the first quarter, while PAGCOR has indicated that second-quarter results also remained below expectations.

Geronimo Law further emphasized that the expected P30 billion to P50 billion generated from the sale of Casino Filipino assets would not be allocated to the Universal Health Care program, as proceeds from asset disposals are not classified as franchise gaming earnings under existing legislation.

Government Review Continues

PAGCOR's proposal to separate its regulatory and operating functions is currently under review by the Governance Commission for Government-Owned and Controlled Corporations (GCG).

The commission is expected to submit its recommendation to the Office of the President in August, a key step in determining the future of the privatization initiative.