THE Philippine Amusement and Gaming Corp. (Pagcor) expects the proposed separation of its regulatory and casino operating functions to be completed in the early part of 2027, as the state-run gaming regulator awaits a recommendation from the Governance Commission for Government-Owned or -Controlled Corporations (GCG).
Pagcor Chairman and CEO Alejandro Tengco said the GCG could issue its recommendation within the next 30 days, although he cautioned that the recommendation would not automatically result in the issuance of an executive order by President Ferdinand Marcos Jr.
“If the recommendation of the GCG will be out in the next 30 days, well, maybe there's a chance. But I am more hopeful it can happen maybe early part of next year,” Tengco told reporters at the sidelines of the IAG Summit on Tuesday.
The GCG has been reviewing Pacor’s proposal to “decouple” its regulatory and commercial operations, a move that would eventually allow the agency to focus primarily on regulating the gaming industry while private operators take over the operation of Casino Filipino.
Tengco said Pagcor had already submitted to the GCG the documents and data requested since the last quarter of last year, but stressed that the proposal was not a simple matter because it would be the first time such a restructuring would be undertaken.
“This is not a simple matter, that's why GCG has remained very cautious. And I think that's the way to go,” Tengco said.
“There will also be a thorough discussion and a thorough study on the matter,” he added, noting that the issuance of an executive order requires careful consideration.
The proposed decoupling is intended to address what Tengco considers a “structural conflict” in Pagcor’s current mandate, in which the agency regulates gaming companies while also operating its own casinos under the Casino Filipino brand.
“From Day One, clearly I have said, there is no regulatory body in the world that is also an operator,” Tengco said, arguing that Pagcor should no longer compete with companies to which it grants gaming licenses.
He said the agency's main focus after the restructuring would be regulation rather than marketing and operating Casino Filipino.
“For me, the most important thing is we will strengthen Pagcor,” Tengco said. “And Pagcor, with its strength, will be able to regulate better.”
As part of the proposed restructuring, Pagcor is looking at the possible sale or transfer of its casino operations to private investors.
Tengco said the agency could conservatively raise around P20 billion from the decoupling, although he emphasized that the amount would be affected by prevailing market conditions and the decline in gaming revenues.
“We are not selling any property because we do not own one. We are just leasing,” he said. “So, maybe conservative, if we can raise P20 billion, that will be on the conservative side.”
The Pagcor chairman also said there were already inquiries from foreign companies, local businessmen, and existing gaming licensees interested in the operations of Casino Filipino.
He said Pagcor is hoping the initial inquiries would eventually translate into actual transactions.
The agency is banking on the strategic locations of its Casino Filipino sites, located in 38 cities, to attract investors.
Tengco cited properties in Cebu, Bacolod, Iloilo, Davao, and Tagaytay as offering significant value to prospective operators.
He added that the terms of reference for any sale would likely provide some form of area-specific exclusivity to make the properties more attractive to bidders.
The push to accelerate the restructuring comes as Pagcor faces weaker gaming conditions.
Tengco said the agency's original P397-billion gross gaming revenue (GGR) target for the year was now likely too high after eight months of operations.
Pagcor is instead looking at a more conservative GGR outcome of around P350 billion.
Tengco attributed the uncertainty partly to broader economic conditions in the Philippines and neighboring countries.
“The economic condition of our country, not only our country but even our neighboring countries, until these uncertainties regarding the Middle East conflict is settled, I think we will just have to bear with whatever we can have,” Tengco said.
He said the slowdown also provides Pagcor an opportunity to reassess its operations and improve its regulatory guidelines and structures.
The weaker gaming environment has also increased pressure on Casino Filipino.
Tengco said the state-operated casinos were “bleeding heavily” and carrying costs that Pagcor believes should already be removed from its operations.
“We have so much costs that I believe we should already get rid of,” he added.
