Potential buyers of Casino Filipino are poised to push back against any government attempt to force them to retain staff from the state-owned gaming operator, according to Makati-based legal practice Geronimo Law, creating a fresh complication for the Philippine Amusement and Gaming Corp.’s (Pagcor) multi-billion peso privatization drive.

While trained gaming personnel remain a scarce resource, Geronimo Law noted in a recent outlook that private investors’ “appetite to absorb will be highly selective.”

As such, stakeholders should “expect bidders to resist an absorption mandate.” This friction comes as Pagcor seeks to unload roughly 40 Casino Filipino branches and satellite sites through an asset sale targeted for completion between late 2026 and 2027.

The privatization proposal is currently under review by the Governance Commission for GOCCs (GCG) to determine the framework for the state-run operator’s disposition.

The chosen deal structure presents a major hurdle for the workforce. Because Casino Filipino branches are not distinct corporate entities with tradable shares, Pagcor must sell the casinos’ assets directly rather than transferring company ownership.

Under an asset transaction, “the buyer... is not obliged to absorb the seller’s employees nor answer for their claims,” Geronimo Law explained. The firm emphasized that while a share sale preserves the employer-employee relationship, “an asset sale results in severance of employment,” leaving workers with legal recourse against Pagcor alone.

If Pagcor attempts to attach a hiring mandate to the bidding terms, the firm expects it will be “priced into lower offers and satisfied through engagement of the most marketable job classes,” such as dealers, surveillance officers, and slot technicians.

Any assumed liabilities regarding employee tenure would likely be deducted from bid prices, effectively forcing Pagcor to subsidize the obligation through a reduced payout.

For employees re-hired by the new private operators, the transition also means moving from the Government Service Insurance System (GSIS) to the Social Security System (SSS).

While switching pension systems creates a risk of falling short of the minimum service requirement under either program alone, the Portability Law mitigates this by combining total years of service across both systems so workers can still qualify for retirement benefits.