PAGCOR Prepares for Potential Shift Away from Casino Operations

Philippine gaming regulator PAGCOR under Chairman and CEO Alejandro Tengco anticipates that the Governance Commission for GOCCs will deliver its recommendation on decoupling the agency from its own casino operations by August 2026, and this step would clear the path for an Executive Order later that year to separate regulatory duties from day-to-day venue management across more than 40 Casino Filipino locations.

Current Dual Role and Proposed Changes

PAGCOR currently functions as both regulator and operator of its self-run casinos, yet teh anticipated recommendation from the Governance Commission for GOCCs aims to end this arrangement so the agency can concentrate solely on oversight while moving toward privatization of those venues, and the process addresses ongoing criticism regarding conflicts that arise when one body handles both functions.

Observers note that reduced tourism and lower VIP play linked to regional economic pressures have added urgency to the review, since those factors have affected performance at the self-operated sites, and the decoupling plan seeks to resolve structural issues that have drawn scrutiny from stakeholders and government bodies alike.

Timeline and Next Steps

The sequence begins with the Governance Commission for GOCCs submitting its formal recommendation in August 2026, after which an Executive Order could follow later in the year to authorize the transition, and this timeline allows PAGCOR leadership to prepare for a regulatory-only mandate while initiating privatization efforts for the Casino Filipino network.

Those involved in the process indicate that the shift would transfer operational control of the venues to private entities, thereby freeing PAGCOR resources for stricter enforcement of gaming rules across the broader industry, and the change aligns with broader government efforts to streamline state-owned corporations.

Privatization Path Forward

Once the Executive Order takes effect, PAGCOR would begin the process of divesting its operational assets, and this privatization phase includes identifying suitable buyers or concessionaires for the more than 40 locations while ensuring continuity of employment and service standards during the handover period.

Data from the agency shows that these venues represent a significant portion of its current workload, so removing them would allow staff and budgets to shift toward regulatory enhancements such as updated player protection measures and expanded monitoring of licensed private casinos operating elsewhere in the country.

Industry Context and Regulatory Focus

The move fits within ongoing discussions about modernizing state participation in gaming, and it responds directly to calls for clearer boundaries between oversight and commercial activities, whereas countries with similar dual-role agencies have sometimes faced comparable restructuring debates in recent years.

According to the reported expectations, the Governance Commission for GOCCs will finalize its assessment by the August 2026 target, after which the Office of the President would review the findings before issuing any directive, and this measured approach gives all parties time to address operational details and stakeholder concerns.

Conclusion

The anticipated recommendation and subsequent Executive Order represent a pivotal development for PAGCOR, one that would redefine its mandate and reshape how casino operations function under Philippine regulation, and the timeline stretching into late 2026 provides a clear roadmap for implementing these structural adjustments amid existing market headwinds.