PAGCOR Awaits GCG Decision on Proposal to Split Regulatory Duties From Casino Operations

The Philippine Amusement and Gaming Corporation expects a decision soon from the Governance Commission for Government-Owned or-Controlled Corporations on its proposal to separate its regulatory role from its casino operations, and Chairman and CEO Alejandro Tengco delivered those remarks during an industry event held in Manila during September 2026. The proposal remains under active review by the GCG, and if the commission endorses it then forwards the matter for presidential approval through an Executive Order, the change would address inherent conflicts that arise when one agency serves simultaneously as both regulator and operator.

Current Structure and the Separation Proposal

PAGCOR currently manages both regulatory oversight of gaming activities across the Philippines and direct operation of its own casino facilities, while the proposal under consideration would divide those functions into distinct entities to eliminate overlapping responsibilities. Tengco noted at the event that the GCG continues to examine the submission, and observers note the review process follows standard procedures for government-owned corporations seeking structural adjustments. The dual mandate has existed for years, yet the current initiative seeks to realign responsibilities so that regulation operates independently from commercial casino management.

Timeline and Review Process

During the September 2026 industry gathering in Manila, Tengco confirmed the proposal had reached the GCG for evaluation, and he indicated a decision could arrive in the near term depending on the commission's assessment schedule. The GCG evaluates proposals from government-owned or controlled corporations based on governance standards, operational efficiency, and alignment with national policy objectives, while the review includes examination of how separation would affect staffing, budget allocation, and oversight mechanisms. If approved at that level, the matter advances to the Office of the President for final authorization through an Executive Order, and that step would formalize the division of roles into law.

Those involved in the process emphasize that the GCG review incorporates input from various stakeholders, and the commission examines potential impacts on both regulatory effectiveness and commercial performance. The proposal addresses conflicts that surface when the same organization sets rules and then operates under those rules, and Tengco highlighted this point during his remarks at the event. Government records indicate similar separations have occurred in other state-run enterprises, and the current effort follows established administrative pathways.

Broader Context of Gaming Regulation in the Philippines

The Philippine gaming sector includes multiple licensed operators alongside PAGCOR's own facilities, and the regulatory framework covers everything from casino licensing to compliance with responsible gaming standards. According to industry reports from regional associations, the country maintains one of the larger regulated markets in Southeast Asia, and PAGCOR plays a central role in both revenue collection and policy enforcement. The separation proposal would leave operational casinos under a dedicated management structure while shifting regulatory duties to an independent body, and this distinction aims to strengthen impartial oversight across all market participants.

Research from academic institutions studying public administration in Asia has examined cases where combined regulator-operator models create challenges, and the PAGCOR initiative represents one response to those documented issues. Tengco's comments at the Manila event provided the latest update on the GCG review, and he noted the proposal remains in active consideration without a fixed announcement date. The process allows for detailed analysis of organizational charts, financial projections, and legal requirements before any recommendation moves forward.

Potential Next Steps After GCG Review

Should the GCG endorse the proposal, the next phase involves submission to the President for Executive Order approval, and that document would outline the specific terms of the separation including timelines for transition and allocation of assets. Government procedures require such orders to address staffing transfers, budget reallocations, and continuity of regulatory functions during the changeover period. Tengco indicated in September 2026 that the agency awaits the commission's findings, and the outcome will determine whether further legislative or administrative actions become necessary.

Industry participants at the Manila event received the update as part of broader discussions on regulatory developments, and the remarks aligned with ongoing efforts to modernize governance structures within state corporations. The GCG maintains responsibility for ensuring proposals meet standards of transparency and accountability, and its review incorporates both internal assessments and external consultations where appropriate.

Conclusion

The proposal to separate PAGCOR's regulatory and operational roles continues through the GCG review process following Tengco's September 2026 statements in Manila, and any endorsement would set the stage for presidential consideration via Executive Order. This development reflects standard administrative procedures for restructuring government-owned entities, and the outcome will shape how gaming oversight and casino management function independently in the Philippines going forward. The agency awaits the commission's decision while maintaining current operations under the existing dual mandate.