Pagcor regulatory overhaul to clear path for P30-B casino sale

Insider Spotlight

• Decoupling of Pagcor's regulatory and commercial functions is nearing Malacañang approval
• Privatization of Pagcor's 40 casinos could generate P20 billion to P30 billion for the government
• Reform would allow Pagcor to focus solely on regulating the country's gaming industry
  
  
  
  

Philippine Amusement and Gaming Corp.'s long-awaited regulatory overhaul is nearing a key milestone, clearing the way for the privatization of its commercial casino operations that could generate “P20 billion to P30 billion” in proceeds for the government.

Pagcor chair and CEO Alejandro Tengco said the Governance Commission for Government-Owned and Controlled Corporations (GCG) is in the final stages of reviewing the proposed separation of the agency's regulatory and commercial functions. Once completed, the commission will endorse the proposal to Malacañang, where President Ferdinand Marcos Jr. could issue an Executive Order implementing the reform.

Why it matters

The decoupling is one of the biggest institutional reforms in Pagcor's history, ending the agency's dual role as both gaming regulator and casino operator. It would allow Pagcor to concentrate exclusively on regulation while opening the door to the privatization of its casino business.

The sale of Pagcor's 40 casinos is expected to raise between P20 billion and P30 billion for the government, Tengco told InsiderPH.

The latest

Speaking separately at the IAG Academy Summit in Pasay City, Tengco said the proposal remains under review by the GCG but expects a decision soon.

"Once the review is completed, the GCG will officially endorse the decoupling proposal to the Office of the President, and it is at this stage that the Office of the President will evaluate the proposal, and if they find merit on the decoupling initiative, an executive order can be issued," the gaming chief said.

What's next

Tengco described the initiative as a "major institutional overhaul" involving legal, financial, operational and human resource considerations, saying every stage must be carefully executed.

He added that Pagcor is already preparing for a future in which it can devote "its entire focus, expertise, and resources to regulation" as the gaming industry becomes increasingly complex, particularly in the fast-growing electronic gaming segment.

The bottom line

If approved, the executive order would complete a governance reform long sought by the gaming industry, positioning Pagcor as a dedicated regulator while unlocking billions of pesos from the sale of its commercial casino assets. —Daxim L. Lucas | Ed: Corrie S. Narisma