The proposed separation of PAGCOR’s regulatory and casino-operating functions is nearing a key government decision, with Chairman and chief executive officer Alejandro H. Tengco pushing for the state gaming agency to focus solely on regulation.
The Governance Commission for GOCCs (GCG) is reviewing the proposal, which PAGCOR expects to move forward soon. Once the review is completed, it will be endorsed to the Office of the President for evaluation. Presidential approval would pave the way for an executive order implementing the separation.
Tengco said separating regulation from commercial operations would address the inherent conflict in having PAGCOR oversee private gaming operators while competing with them through its own casinos.
“You do not want a regulator to regulate its own operations,” Tengco said, noting that the growing number of private-sector licensees has changed the gaming landscape and prompted PAGCOR to reassess its commercial role.
Under the proposed structure, PAGCOR would devote more of its resources and expertise to setting and enforcing industry rules, with clearer boundaries between the regulator and operators.
Tengco said the reform would have legal, financial, operational, and human-resource implications, requiring a careful transition rather than a simple change in organizational structure.
PAGCOR has nevertheless begun preparing for a setup in which regulation becomes its primary mandate.
“This is not about how much we will generate. It is about strengthening PAGCOR, and with its strength, we can do our work better,” Tengco said.
The proposal comes as the Philippine gaming industry has expanded beyond PAGCOR-operated casinos, increasing the agency’s regulatory responsibilities as private operators and other gaming segments grow.
A regulatory-only PAGCOR could also give private operators greater clarity on the rules governing the industry, while allowing the agency to concentrate on compliance, enforcement, and responsible gaming.
The reform, however, would also force PAGCOR to rethink a commercial function that has long been tied to its role as a major government revenue source.
That makes the pending GCG review consequential. The question is no longer simply whether PAGCOR can regulate and operate casinos at the same time, but whether the
