PAGCOR Awaits GCG Decision on Separation of Regulatory and Commercial Functions

The Philippine Amusement and Gaming Corporation (PAGCOR) has communicated that it expects an imminent resolution from the Governance Commission for Government-Owned or-Controlled Corporations (GCG) regarding its proposal to separate the regulatory and commercial functions of the agency. This was stated by PAGCOR's president and CEO, Alejandro H. Tengco, on Tuesday, September 15, during his speech at the IAG Academy Summit 2026 at Newport World Resorts Manila. This separation would represent a significant institutional reform for the gaming industry in the Philippines, with far-reaching legal, financial, and operational implications.

Current Status of the Proposal and Regulatory Process

Currently, the plan for separation remains under review by the GCG. PAGCOR officials are hopeful that a decision will be announced soon. Once this analysis is completed, the GCG will formally forward the proposal to the President's Office for evaluation. If deemed appropriate, the President may issue an Executive Order establishing the separation of PAGCOR's regulatory and commercial functions. Tengco emphasized that this is a careful and deliberate process: each stage must be thoroughly evaluated to ensure proper implementation.

Implications of Separating PAGCOR’s Functions

The initiative entails extensive reforms for PAGCOR, covering legal, financial, operational, and human resources areas. Tengco stated that such a transformation would allow the institution to focus its resources and teams on regulation, which would strengthen its position within the Philippine sector. The PAGCOR president summarized this approach as follows:

“This is not about how much we are going to generate. It is about strengthening PAGCOR, and with that strength, we will be able to do our job better.” — Alejandro H. Tengco, PAGCOR

According to the executive, one of the main arguments in favor of the reform is to eliminate the inherent conflict of having the same entity regulating and operating within the same market. Tengco asserted:

“A regulator should not oversee its own operations.” — Alejandro H. Tengco, PAGCOR

This principle adheres to international governance standards and seeks to enhance legitimacy and transparency in the local industry.

Evolution of the Gaming Sector in the Philippines and PAGCOR's Role

Since the establishment of Casino Filipino, the Philippine gaming ecosystem has undergone significant changes, driven by the entry of private operators and the rise of electronic gaming. These developments, Tengco noted, require institutions like PAGCOR to adapt rapidly, maintaining competitiveness and adjusting their roles within the industry. The ecosystem, according to the president, is experiencing unprecedented transformation, especially in the Electronic Gaming segment. Institutional response will be key to accompany this sector's dynamism.

Reevaluation of PAGCOR's Commercial Role

In light of the proliferation of licenses granted to the private sector, PAGCOR has begun planning a transition where its commercial function is subordinated to regulatory oversight. This involves preparing internal structures, training staff, and modifying supervision procedures, focusing on a model where regulation is the priority function.

Expectations and Next Steps in the Process

The GCG's resolution — and subsequently the decision of the President of the Philippines — will be pivotal for implementing the proposed institutional modification. Tengco considers that the separation of functions represents a vital step toward building a more focused and robust gaming regulator. Effective implementation will depend on specific legal instruments and executive directives, as well as on internal change management within the organization.

The community of operators, investors, and suppliers in the Philippine sector is closely watching the outcome of this process, as its approval could alter market structure and influence issues of competition, regulatory controls, and relationships with licensees, as seen in recent forums and meetings on regulation, casino, and b2b.