PAGCOR Seeks Approval for Decoupling Its Commercial and Regulatory Functions

By jili tutorial · September 17, 2026

PAGCOR Seeks Approval for Decoupling Its Commercial and Regulatory Functions

The Philippine Amusement and Gaming Corporation (PAGCOR) is on the verge of a major transformation. The state-owned gaming regulator and operator has announced that its long‑planned separation of regulatory and commercial functions may soon receive the green light from the Governance Commission for Government‑Owned or -Controlled Corporations (GCG). This move addresses a long‑standing criticism of PAGCOR’s dual role, which many industry observers and stakeholders view as an inherent conflict of interest.

Background: Why PAGCOR’s Dual Role Became Controversial

Founded in 1977, PAGCOR originally operated the Casino Filipino brand in a market that was fundamentally different from today’s landscape. At that time, the Philippines had a limited gaming sector with few private participants. Over the decades, however, the country has opened its doors to commercial gaming—including integrated resorts, online gambling, and e‑games—transforming the industry into a multi‑billion‑dollar ecosystem.

This rapid evolution exposed a structural flaw: PAGCOR acts both as the sole regulator of all Philippine gaming (including its own casinos) and as an operator competing for customers. Critics argue that this creates a conflict of interest—for example, when setting rules or licensing rivals, PAGCOR must weigh its own bottom line against the fair treatment of other operators. Tengco himself summed it up: “You do not want a regulator to regulate its own operations.”

The Decoupling Proposal: What It Entails

Under the proposed reform, PAGCOR’s regulatory arm would be separated from its commercial operations. The exact structure is still under review, but the core idea is to spin off or create a distinct entity to oversee licensing, compliance, and enforcement, while a separate commercial division (or a wholly owned subsidiary) runs the Casino Filipino chain and other gambling ventures.

The proposal is currently being examined by the GCG, which oversees the performance and governance of government‑owned corporations. On September 15, PAGCOR confirmed that the GCG is actively reviewing the plan. During his keynote address at the IAG Academy Summit 2026 held at Newport World Resorts Manila, PAGCOR CEO and Chair Alejandro Tengco stated that a decision is expected “very soon.”

The Approval Process

Once the GCG completes its review, it will endorse the proposal to the Office of the President. If the President finds merit in the plan, he may issue an executive order to implement the decoupling. Tengco emphasized that this is not a simple administrative change: “It is a major institutional reform with legal, financial, operational and human resource implications.”

Why the Reform Matters: Key Implications and Examples

The decoupling is not merely about reshuffling departments—it has far‑reaching consequences for the entire Philippine gaming industry.

Regulatory Independence – A neutral regulator can issue fines, revoke licenses, and enforce rules without worrying about how those decisions affect its own casino revenues. For instance, if a private operator is found violating anti‑money laundering rules, an independent agency can act decisively without internal conflict.
Fair Competition – Private casinos and online gaming providers have long complained that PAGCOR enjoys an unfair advantage because it sets the rules and also operates. Separation would level the playing field, potentially attracting more foreign investment.
Operational Efficiency – As Tengco noted, “This is not about how much we will generate. It is about strengthening PAGCOR, and with its strength, we can do our work better.” By focusing on its core mission, each branch can specialize and improve performance.
Human Resource and Financial Restructuring – Splitting the organization requires new job descriptions, salary scales, budgets, and even physical locations. The transition must be carefully managed to avoid disruption.

Tengco’s Call for Evolution

Tengco stressed that institutions “must evolve as rapidly as the industries they regulate.” The Philippine gaming industry has changed dramatically—from a handful of state‑run casinos to a complex ecosystem of integrated resorts, e‑bingo, sports betting, and online platforms. To remain competitive and credible, PAGCOR needs a modern governance framework.

He also acknowledged that the reform has been discussed for years, but the time is now right because the industry itself has matured. “Back when the PAGCOR’s Casino Filipino brand was created, Philippine gaming was a very different thing,” he reminded the audience.

Next Steps and Outlook

Pending the GCG’s decision and the President’s executive order, the decoupling could become effective within the next several months. Industry insiders expect a phased implementation to minimize disruption. Meanwhile, PAGCOR will continue its dual role until the reform is finalized.

For investors and operators in the Philippine gaming sector, this development signals a commitment to international best practices. An independent regulator would align the Philippines with jurisdictions like Macau, Singapore, and the US, where regulators do not directly operate casinos.

Conclusion

The proposed separation of PAGCOR’s regulatory and commercial functions is a landmark reform. If approved, it will reshape the governance of Philippine gaming, reduce conflicts of interest, and pave the way for a more transparent and competitive market. As Tengco concluded, he hopes that the proposal “will gain the necessary approvals” and that the country can move forward with a stronger, more credible regulator.

PAGCOR Seeks Approval for Decoupling Its Commercial and Regulatory Functions