Former Philippine Senator Franklin Drilon supports the proposal to privatize PAGCOR's gaming business in the hope of raising funds for the Maharlika Investment Fund (MIF).
Drilon said privatizing the gaming operations of the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO) would generate up to 300 billion Philippine pesos ($5.5 billion) in annual revenue that could be used to support the government’s proposed sovereignty investment funds.
Currently, 10% of PAGCOR’s gross gaming revenue (GGR) is attributed to MIF. The Land Bank of the Philippines (LBP) is the largest contributor to the fund, expected to contribute approximately 50 billion Philippine pesos ($917.59 million).
According to Drilon, if PAGCOR’s gaming operations are privatized, the government will not have to fund the MIF with dividends from the Land Bank of the Philippines (LBP) and other public financial institutions such as the Bangko Sentral ng Pilipinas (BSP), Development Bank of the Philippines (DBP).
Senator Sherwin has also called for PAGCOR to be reorganized due to its dual responsibilities as casino operator and regulator. However, past attempts to privatize PAGCOR have been unsuccessful due to the positive cash flow generated by its gaming properties.
Opponents of the privatization model argue that PAGCOR's casinos generate large amounts of money for the government every year. Former President Rodrigo Duterte wanted to sell 17 of the regulator's 47 casinos in 2016, but the proposal was ultimately abandoned due to the success of PAGCOR's casino business.
