PAGCOR Awaits Imminent GCG Ruling on Separation of Regulatory and Commercial Roles

The Philippine Amusement and Gaming Corporation (PAGCOR) anticipates a final decision from the Governance Commission for Government-Owned or-Controlled Corporations (GCG) on its proposal to separate PAGCOR's regulatory and commercial functions within weeks. Chairman and CEO Alejandro H. Tengco confirmed on 15 September that the GCG review is nearing completion and, if approved, the proposal will proceed to the Office of the President for evaluation and possible enactment via Executive Order.

Current Status of PAGCOR Decoupling Proposal

During his keynote address at the IAG Academy Summit 2026 at Newport World Resorts Manila, Mr. Tengco informed industry stakeholders that the dual-role structure of PAGCOR remains under GCG review. "Currently, the proposal remains under review by the GCG, and we expect a decision to be out very soon," he stated on 15 September. Any endorsement by the GCG would result in the matter being forwarded to the Office of the President for further assessment. Should the President approve, formal separation will be enacted through an Executive Order, legally instituting the change.

Institutional Reform: Legal and Operational Impact

Decoupling PAGCOR’s dual mandate represents a significant shift for the Philippine gaming landscape. Mr. Tengco emphasised that the change involves extensive legal, financial, operational, and human resource considerations. The agency has initiated internal preparations for this potential transition, with a focus on reallocating capacity and expertise primarily toward regulatory functions, rather than commercial operations. He outlined that the reform aims to strengthen PAGCOR as an institution: > "This is not about how much we will generate. It is about strengthening PAGCOR, and with its strength, we can do our work better," Mr. Tengco explained.

Addressing Conflicts of Interest and Industry Evolution

A central motivation for the proposed decoupling is to resolve the inherent conflict presented by PAGCOR operating both as regulator and commercial operator. Mr. Tengco candidly remarked, > "You do not want a regulator to regulate its own operations," highlighting industry best practice separating market oversight from commercial participation. Since the establishment of Casino Filipino, the advent and rapid growth of private sector licensees—including new casino entrants and technology providers—has altered the market dynamic, necessitating a review of PAGCOR's commercial participation vis-à-vis its supervisory mandate.

Electronic Gaming and the Competitive Imperative

Mr. Tengco called particular attention to fast-moving changes in electronic gaming. He characterised this sector as the most visible example of industry transformation and stated that maintaining regulatory relevance and effectiveness requires evolving institutional structures at a pace matching technological and market change. "The reality is that the industry is evolving at an unprecedented pace, and nowhere is that transformation more visible than in Electronic Gaming," he noted.

Next Steps and Strategic Outcomes

If endorsed by both the GCG and the Office of the President, the separation will be implemented by Executive Order, resulting in PAGCOR dedicating its institutional focus to regulation. As internal preparations advance, PAGCOR's leadership views the decoupling as vital to maintaining effective oversight and adapting to the competitive pressures of a changing gaming market. Mr. Tengco concluded that the reform marks an "important step toward building a stronger and more focused gaming regulator" for the Philippines.

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