The Philippine Amusement and Gaming Corporation (PAGCOR) is nearing a decision on ending its dual role as the Philippines’ gaming regulator and casino operator, subject to approval from the Governance Commission for Government-Owned and Controlled Corporations (GCG) and the Office of the President.
PAGCOR Chair and Chief Executive Officer Alejandro Tengco said at the IAG Academy Summit that he expected the GCG to complete its review and endorse the decoupling proposal. The Office of the President would then assess the plan, with an Executive Order required if it is approved.
“Once the review is completed, the GCG will officially endorse the decoupling proposal to the Office of the President. It is at this stage that the Office of the President will evaluate the proposal. If they find merit in the decoupling initiative, an Executive Order shall be issued,” Tengco said.
End of a 50-year casino role
PAGCOR currently operates 16 Casino Filipino sites. Separating the two functions would end the corporation’s 50-year ownership of casinos, which began with a floating casino on the MS Philippine Tourist in 1977.
Tengco said the transition would need to be “carefully considered”, citing potential legal, financial, operational and human resource implications.
PAGCOR’s latest financial results show that its casinos generated Php 2.9bn (£34.2m) in gross gaming revenue during the second quarter of the year. That represented 3.3% of total GGR of Php 88.1bn (£1.04bn).
The proposal comes as the Philippine gaming market faces weaker consumer spending linked to ongoing tensions in the Middle East and a rising cost of living. E-Gaming GGR fell by more than 37% in the second quarter to Php 39.9bn (£482.9m), while overall revenue declined by 20% to Php 88.1bn (£1.07bn).
Consolidation before new online licences
Despite the market decline, Tengco said last month that PAGCOR would not reverse a moratorium imposed in March 2024 to allow new online gaming licensees to enter the market. Instead, he called for greater industry consolidation.
“I want the whole industry to consolidate. So that the weak can leave and when it consolidates, we will decide if we will issue licenses next time,” he said.
Tengco added that some licence holders had kept their licences inactive in an attempt to sell them, something PAGCOR was seeking to address.
“There are a lot of people who were granted licenses. We didn’t realise that some of them were just keeping the licenses idle, trying to sell them. But we are making efforts to eliminate those,” he said.
