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Privatizing Casino Filipino: Impact on Universal Health Care

Geronimo Law is launching the Casino M&A series on the privatization of PAGCOR's Casino Filipino. For this report, we estimate how much will be lost to universal health care post-privatization. (PAGCOR contributes to PhilHealth universal health coverage.) We estimate a recurring loss to universal health care of about ₱1.7 billion per year to ₱2.1 billion post-privatization, assuming 2024 and 2025 Casino Filipino revenues. This is a total of ₱12.1 billion foregone universal health care contributions over the remaining life of the franchise.

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What's Inside?

An explanation of how PAGCOR's statutory revenue-sharing mechanism currently funds the Universal Health Care program through gaming revenues.

Analysis of the proposed Casino Filipino privatization, including the regulatory timeline and PAGCOR's transition to a pure regulator.

Financial estimates showing the projected reduction in annual Universal Health Care funding under different casino licensing fee scenarios.

A legal assessment of why privatization proceeds do not form part of the statutory Universal Health Care funding base and the broader fiscal implications.

Advisory on Gaming Regulation and Public Finance

Geronimo Law advises investors, gaming operators, regulators, and public institutions on gaming law, privatization transactions, public finance, regulatory reform, and casino M&A in the Philippines.

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Frequently Asked Questions

This section addresses common concerns raised by businesses, legal teams, and finance professionals looking for clarity on complex issues and get a better understanding of key concepts.

Why does Casino Filipino contribute to Universal Health Care funding?

Under the Universal Health Care Act, 50% of the National Government's share from PAGCOR income is earmarked for PhilHealth. Because Casino Filipino is operated directly by PAGCOR, its gaming revenues contribute to this statutory funding mechanism.

How would privatization affect Universal Health Care funding?

Once Casino Filipino is privatized, PAGCOR would primarily collect licensing fees instead of operating casino branches. Since licensing fees generate a smaller UHC contribution than direct gaming revenues, annual funding for Universal Health Care is projected to decline.

Will the proceeds from privatizing Casino Filipino fund Universal Health Care?

No. The paper explains that privatization proceeds are not considered gaming earnings under the statutory funding formula. As a result, the estimated ₱30–50 billion purchase price would accrue to the National Government but would not be earmarked for Universal Health Care.

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