PAGCOR Decoupling Plan Moves Toward Presidential Review

The Philippine Amusement and Gaming Corporation (PAGCOR) could move a step closer to separating its regulatory responsibilities from its casino operations as early as August, according to comments from Chairman and CEO Alejandro Tengco.

The proposal, which has been under discussion for several years, would transform PAGCOR into a purely regulatory agency while paving the way for the privatization of its Casino Filipino network. The state-run casino brand currently operates more than 40 venues across the Philippines.

Tengco said the Governance Commission for Government-Owned or -Controlled Corporations (GCG) is expected to submit its recommendation on the plan to the Office of the President next month. Once received, the proposal would undergo further review before any final decision is made.

“The Office of the President will study that so it will be at the end of this year. It will be done through an Executive Order,” Tengco said according to Inside Asian Gaming. Industry sources cited in local reports indicated that such an Executive Order could potentially be issued by mid-September, although no official timeline has been confirmed.

Government Review Nears Key Stage

The restructuring proposal aims to address longstanding concerns surrounding PAGCOR’s dual role as both a gaming regulator and a casino operator. Critics have argued that maintaining both functions within the same organization creates potential conflicts of interest. Under the plan, PAGCOR would retain only its regulatory responsibilities while its casino assets would eventually be transferred to private ownership.

GCG Chairperson Marius Corpus confirmed that the review process remains ongoing and that the commission is working toward completing its recommendation during the current quarter. According to reports, Corpus said progress on the privatization initiative could occur before the end of the year, although several procedural steps remain.

Corpus also indicated that much of the preparatory work has already been completed. “More or less it is done. But I do not want to give a specific deadline or timeline, but it will be this year.”

If approved, the transition would be implemented gradually. Corpus further noted that existing integrated resort operators have shown interest in the Casino Filipino portfolio.

Tengco Sees Decoupling as Legacy Initiative

Privatizing PAGCOR’s casino operations has been a central objective of Tengco’s leadership. He has previously stated that he hopes to complete the process before the end of President Ferdinand Marcos Jr.’s term in 2028. Tengco also described the separation initiative as a defining goal of his tenure at the gaming regulator.

The proposal represents one of the most significant structural changes considered by the Philippine gaming industry in recent years. A successful transition would fundamentally alter PAGCOR’s role within the sector by ending its direct participation in casino operations.

Gaming Sector Faces Challenging Conditions

While discussing the decoupling proposal, Tengco also provided his assessment of current market conditions, suggesting that the Philippine gaming industry experienced a difficult second quarter.

Official figures for the three months ended June 30 have not yet been released by PAGCOR. However, Tengco indicated that performance likely remained under pressure due to several external factors.

“It’s bad. Why? There are no tourists, no VIP players because of the war.” He said ongoing conflict in the Middle East has reduced tourism activity and affected spending among high-value players. Tengco also noted that lower-income consumers, who form an important part of the domestic online gaming market, have faced financial pressures linked to the same situation.

“The online gaming sector was hit because users in lower income brackets are the groups most affected by the Middle East crisis.”

According to Tengco, second-quarter gross gaming revenue may end up close to first-quarter levels, although it would likely trail the corresponding period in 2025 by a significant margin.

Earlier this year, PAGCOR reported first-quarter gross gaming revenue of PHP87.6 billion (US$1.42 billion), representing a 15.9% decline from the same period a year earlier. Weaker electronic gaming activity contributed to that decrease.

Outlook Improves for Second Half

Despite recent challenges, Tengco expects conditions to improve during the latter part of 2026. He pointed to lower fuel prices as a factor that could ease pressure on household budgets and support greater spending across the gaming market.

Tengco believes electronic gaming will play a leading role in any recovery during the second half of the year.

The regulator has not yet published official second-quarter industry results, leaving the market awaiting confirmation of how recent geopolitical developments and consumer spending trends have affected overall gaming revenue. At the same time, attention remains focused on the government’s review of PAGCOR’s restructuring proposal, which could determine the future shape of the Philippine gaming regulator and its Casino Filipino operations.