PAGCOR Closes Loss-Making Casinos in Cebu and Davao del Norte

The Philippine Amusement and Gaming Corporation (PAGCOR) announced today that it will shut the doors of two underperforming casinos. The authority confirmed that Casino Filipino Talisay in Cebu has already ceased operations as preparations continue to close Casino Filipino Grand Regal in Davao del Norte.

The decision to close the establishments aligns with PAGCOR’s revitalization plan to modernize most of the gaming equipment in the Philippines. The program is meant to encourage private-sector investment in commercially viable destinations.

Persistent Losses and Underperformance

PAGCOR underscored that the sites shutting down have incurred significant losses over the past several years. Casino Filipino Talisay, operated by Casino Filipino Cebu, recorded a net loss of PHP39.32 million (about US$672,000) in 2023. The financial situation worsened in 2024 as the site incurred losses of PHP49.56 million (about US$847,000).

Casino Filipino Grand Regal displayed similar trends, recording a PHP31.56 million (approximately US$540,000) loss in 2023. Things did not improve in 2024 as this figure rose to PHP36.93 million (about US$631,000).

Alejandro Tengco, PAGCOR’s Chairman and Chief Executive, explained that these locations’ poor financial performance had made them unsustainable and warranted closure. He stated, “Given the sustained financial strain, continuing operations at these sites is no longer feasible.”

Plans for Casino Staff Members

Tengco emphasized that the staff members in both casinos would not lose their jobs. Instead, they will be reinstated to their mother units and other gaming sites that PAGCOR operates. The 42 workers affected by Casino Filipino Talisay’s closure will be redeployed to other Casino Filipino Cebu branches. On the other hand, the 33 Casino Filipino Tagum employees will be assigned to different sites.

The PACGOR Chair added that the Human Resource and Development Group is working with the affected staff to facilitate a seamless transition. “Our Human Resource and Development Group is actively working with affected employees to facilitate a smooth transition, ensuring that each individual receives guidance and assistance in their reassignment,” he said.

Positive Market Performance

The decision to cease operations in the two casino properties comes only days after PAGCOR published its 2024 revenue report, indicating a record-breaking high of PHP112 billion (US$1.9 billion). This figure represents a 41% increase compared to 2023, with license fees and gaming operations as the primary revenue sources. The authority also had a successful year in 2024 dealing with illegal POGO operations as the last establishments shut down last month.