Pagcor Trims Workforce in Casino Filipino New Coast as Privatization Beckons

In a decisive move reflective of its broader strategic shift, the Philippine Amusement and Gaming Corp. (Pagcor) is set to lay off 665 employees from Casino Filipino New Coast in Malate. This decision marks a significant phase in Pagcor’s long-standing objective to privatize its casino operations by the end of 2025, a plan that signals the dawn of sweeping changes within the state gaming regulator.

Details of the layoffs emerged during a town hall meeting last December, led by Pagcor chair and CEO Alejandro Tengco. The meeting was not just a mere announcement but a window into the broader recalibration of the gaming sector, as the affected employees began receiving their severance packages shortly after. This move comes amidst Pagcor’s announcement of record-breaking revenues exceeding P285 billion in 2023, an indication of the industry’s robust performance post-pandemic.

Despite the buoyant financial backdrop, the transition has not been without its pain points. Employees were presented with options to transfer within Pagcor, yet these opportunities were marred by limitations in availability and the prospect of reduced remuneration. The layoffs represent about 6 percent of Pagcor’s total workforce, underscoring the substantial impact of the transition on the organization’s human capital.

Addressing the concerns and ensuring compliance with labor laws, Tengco highlighted the provision of special incentive packages to the affected workforce. He also pointed to the communication gaps from the previous Pagcor board during negotiations with Marina Square Properties Inc. (MSPI), the private license holder helmed by the Hong Kong-listed International Entertainment Corp. The turnover of casino operations to MSPI is not just a transfer of control but a strategic pivot, reflecting the larger trend of privatization in the gaming industry.

As the torchbearer of this significant shift, Tengco acknowledged the inevitable disruptions that await, especially with the planned privatization of land-based casinos in the second half of 2025. This strategic pivot is not merely an organizational reshuffle; it’s a proactive measure to mitigate conflict-of-interest scenarios, aligning with the broader vision of a transparent and competitive gaming landscape.

Simultaneously, Pagcor is setting its sights on the digital horizon, with ambitious plans to launch an online version of Casino Filipino in the latter half of 2024. This digital foray is expected to catalyze revenue growth, with projections indicating a substantial increase in earnings from e-casino, e-bingo, and digital sports betting.

In essence, Pagcor’s workforce reduction in Casino Filipino New Coast is more than a mere organizational change. It symbolizes a pivotal moment in the Philippine gaming sector’s evolution, a blend of strategic foresight, digital transformation, and a commitment to fostering a gaming environment that is competitive, transparent, and aligned with global trends.