A legal study has estimated that the planned privatization of Casino Filipino could reduce annual funding for the Philippines' Universal Health Care (UHC) program by between PHP1.7bn ($27.5m) and PHP2.1bn, adding a new dimension to the debate over PAGCOR's proposed restructuring.
The analysis, prepared by Philippine law firm Geronimo Law, examines the financial implications of the Philippine Amusement and Gaming Corporation's plan to exit casino operations and become a dedicated regulator.
The report argues that while separating PAGCOR's commercial and regulatory responsibilities would resolve governance concerns and reduce operating costs, it would also remove a significant source of funding for public health programs.
Under Republic Act 11223, half of PAGCOR's remittances to the National Treasury are allocated to the Philippine Health Insurance Corporation to support the country's universal health care system.
According to the study, Casino Filipino contributed PHP3.02bn in 2024 and PHP2.47bn in 2025 to the program.
Geronimo Law estimated that once Casino Filipino is privatized, PAGCOR's contribution would instead be based primarily on license fee income rather than direct gaming revenue.
The firm said privatized casino operations would need to more than triple their gross gaming revenue for license fees alone to generate an equivalent contribution to UHC.
The study comes as PAGCOR advances plans to separate its regulatory and commercial functions. Chairman and CEO Alejandro Tengco has said the Governance Commission for Government-Owned and Controlled Corporations is expected to submit its recommendation to the Office of the President during the third quarter, with an executive order anticipated before the end of the year.
Around 40 Casino Filipino properties are expected to be sold between late 2026 and 2027, with full decoupling targeted for 2028.
Governance debate continues: Why this POV certainly offers bias
The report represents one perspective in a broader policy debate surrounding the reforms. Separating regulation from commercial operations has long been viewed as a governance improvement because it removes the conflict of interest created when the country's gambling regulator also operates casinos that compete with private licensees.
Geronimo Law argues that while those governance benefits may justify privatization, policymakers should also consider how to replace the recurring healthcare funding currently generated through Casino Filipino's operations.
PAGCOR has estimated the planned divestment could generate between PHP30bn and PHP50bn. However, Geronimo Law noted that the proceeds from any sale would not be directed to the UHC program because the statutory allocation applies to gaming income rather than asset sale proceeds.
Earlier this month, PAGCOR ranked as the fifth-largest dividend contributor among Philippine Government-owned and controlled corporations after remitting PHP5.67bn to the National Government from its 2025 earnings, underlining the corporation's wider role in funding public services.
Several regulated gambling markets, including the UK, separate gambling regulation from casino ownership, with regulators overseeing private operators rather than competing directly in the market
