PAGCOR Privatization May Slash Universal Health Care Funding by Billions

The privatization of the Philippine Amusement and Gaming Corp. (PAGCOR), the state-run operator of Casino Filipino, is poised to significantly impact the funding of the Universal Health Care (UHC) program. A study by local firm Geronimo Law estimates that the decoupling of PAGCOR's commercial and regulatory roles could strip the UHC program of P1.7 billion to P2.1 billion in annual funding. According to the firm's report dated July 22, the projected annual loss to universal health care post-privatization is estimated between P1.7 billion and P2.1 billion, based on 2024 and 2025 revenue figures. Under the Universal Healthcare Law (Republic Act 11223), half of PAGCOR's remittances to the national treasury are allocated to the Philippine Health Insurance Corp. (PhilHealth) to support equitable healthcare access for Filipinos. Casino Filipino contributed P3.02 billion in 2024 and P2.47 billion in 2025 to the UHC program. Geronimo Law stated that once privatization is implemented, PAGCOR would transition from operating casinos to functioning solely as a regulator, collecting license fees. The firm calculated that for privatized branches to solely cover UHC's funding needs through license fees, their Gross Gaming Revenue (GGR) would need to more than triple. PAGCOR currently operates Casino Filipino under a legislative franchise that extends until July 2033. PAGCOR chair Alejandro Tengco previously indicated that the Governance Commission for GOCCs would submit its recommendations to the Office of the President within the third quarter, with an executive order anticipated by year-end. The sale of approximately 40 branches is slated for late 2026 to 2027, with full decoupling expected by 2028. While PAGCOR projects proceeds of P30 billion to P50 billion from the privatization, Geronimo Law pointed out that none of the purchase price will directly benefit UHC, as the earmark is solely tied to gaming income. The firm concluded, "Privatization may be defensible on regulatory grounds, 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." This development raises concerns about the financial sustainability of the Philippines' healthcare system and the potential impact of government policy decisions on public health access.