PAGCOR decoupling to cost health care up to P2.1 billion yearly

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July 28, 2026 | 12:00am

MANILA, Philippines — The privatization of Casino Filipino, operated by the Philippine Amusement and Gaming Corp. (PAGCOR), may strip the Universal Health Care (UHC) program funding of about P1.7 billion to P2.1 billion annually, according to local firm Geronimo Law.

In a study, the law firm said that decoupling the commercial and regulatory roles of PAGCOR may resolve governance conflicts and reduce operating costs, but would weaken the funding lifeline for health programs.

“We estimate a recurring loss to universal health care of about P1.7 billion per year to P2.1 billion post-privatization, assuming 2024 and 2025 revenue figures,” the company said in a July 22 report.

Under the Universal Healthcare Law or Republic Act 11223, half of PAGCOR’s remittances to the national treasury go to the Philippine Health Insurance Corp. to help provide Filipinos with equitable health care access.

Casino Filipino contributed P3.02 billion in 2024 and P2.47 billion in 2025 to the UHC program.

Geronimo Law said that once privatization pushes through, PAGCOR would shed its role as operator and function solely as a regulator, collecting license fees.

“For UHC to be made whole through license fees alone, privatized branches would have to more than triple their GGR,” the firm said.

PAGCOR operates Casino Filipino under a legislative franchise until July 2033.

PAGCOR chair Alejandro Tengco earlier said the Governance Commission for GOCCs will submit its recommendation to the Office of the President within the third quarter, with an executive order expected by year-end.

The sale of roughly 40 branches runs from late 2026 to 2027, with full decoupling by 2028.

PAGCOR has projected proceeds of P30 billion to P50 billion, but Geronimo Law noted that none of the purchase price will go to UHC since the earmark attaches only to gaming income.

“Privatization may be defensible on regulatory grounds,” the firm said, “but the measurable cost of the privatization to universal health care is approximately P1.6 billion to P2.3 billion for every year post-sale and no part of the buyout price goes to UHC.”