PAGCOR shutters unprofitable Cebu casino; ensures support for workers
The Philippine Amusement and Gaming Corporation (PAGCOR) has announced the closure of its Casino Filipino branch in Talisay, Cebu, as part of an ongoing rationalisation plan to enhance operational efficiency. Another branch in Tagum, Davao del Norte, is also slated for closure due to sustained financial losses, according to a statement by the regulatory body.
Financial performance and decision rationale
According to PAGCOR’s official statement, the Casino Filipino branch in Talisay incurred a net loss of PHP39.32 million (approximately $670,932) in 2023. The financial strain intensified in 2024, with losses escalating to PHP49.56 million. Similarly, the Tagum branch reported a net loss of PHP31.56 million in 2023, which increased to PHP36.93 million the following year. Given these sustained financial setbacks, PAGCOR determined that continuing operations at these sites was no longer viable.
Employee reassignment and support
PAGCOR has stressed that no employees will be displaced due to these closures. The 42 staff members from the Talisay branch will be reassigned to various branches under Casino Filipino Cebu. In contrast, the 33 employees from the Tagum branch will be deployed to different sites under Casino Filipino Grand Regal in Davao. PAGCOR’s Human Resource and Development Group is actively collaborating with the affected employees to ensure a seamless transition, providing guidance and assistance throughout the reassignment process.
PAGCOR Chairman and Chief Executive Officer Alejandro Tengco (featured in the image above) addressed the closures, stating, “Given the sustained financial strain, continuing operations at these sites is no longer feasible.” He further assured that, despite the financial challenges prompting these decisions, the organisation is committed to safeguarding the welfare of its employees through job reassignments and comprehensive support programmes.
Overview of PAGCOR’s rationalisation plan
The closures are integral to PAGCOR’s broader rationalisation strategy, which aims to enhance operational efficiency and financial stability. This plan involves evaluating the performance of various branches and making strategic decisions to optimise resources. The rationalisation initiative was outlined in PAGCOR’s official documentation detailing the organisation’s restructuring and resource allocation approach.
PAGCOR’s financial performance and future outlook
Despite the challenges certain branches face, PAGCOR has reported significant achievements in other areas. Notably, the corporation earned record revenues in 2024, driven by substantial growth in its eGames sector.
Looking ahead, PAGCOR plans to continue its modernisation efforts, including upgrading gaming equipment and exploring opportunities to privatise commercially viable sites. In September 2024, CEO Alejandro Tengco mentioned that approximately PHP50 billion could be raised from the disposal of land-based operations, with the process potentially commencing in 2026, pending necessary changes to PAGCOR’s charter.
