Philippines Moves Closer to Separating PAGCOR’s Casino and Regulatory Roles

The Philippines is moving closer to separating PAGCOR's roles as both gambling regulator and casino operator, with a government commission expected to endorse the reform for final consideration by the Office of the President.

The Philippines has taken another step toward restructuring the Philippine Amusement and Gaming Corporation (PAGCOR), potentially ending the unusual system under which the state agency both regulates the gambling industry and operates its own Casino Filipino properties.

PAGCOR Chairman and CEO Alejandro Tengco said on September 15 that the Governance Commission for Government-Owned and Controlled Corporations (GCG) is expected to formally endorse the proposed separation of PAGCOR's commercial and regulatory functions “very soon.” The recommendation would then be sent to the Office of the President for a final decision.

If the proposal is approved by the President, an Executive Order would be issued to begin implementing the reform. Tengco stressed, however, that several important stages remain and that the restructuring has significant legal, financial, operational and staffing implications.

PAGCOR currently has a dual mandate. It licenses and regulates casinos and other gaming activities across the Philippines while also directly operating Casino Filipino branches. Its existing charter gives the state-owned corporation authority to regulate, operate, authorise and license games of chance.

The arrangement has long attracted criticism because PAGCOR effectively competes in the same market that it supervises. The agency has argued that separating the two functions would create a more level playing field and allow it to focus entirely on licensing, compliance, responsible gambling and enforcement. PAGCOR has been publicly pursuing a transition toward a purely regulatory role for several years.

The commercial side of the reform would involve separating or privatising Casino Filipino operations. PAGCOR had previously targeted early 2026 for the process, but the timetable slowed while the GCG reviewed the broader decoupling proposal.

The change would be significant for one of Asia's largest gambling markets. PAGCOR currently supervises land-based casinos as well as electronic casino games, bingo, sports betting and other licensed gaming products, giving it an increasingly broad regulatory role as digital gambling expands.

For operators, the main potential benefit is clearer separation between commercial competition and regulatory oversight. For the government, however, the challenge will be restructuring Casino Filipino without disrupting employment, state revenues or existing gaming operations.

The reform is therefore not complete, but the expected GCG endorsement would move it closer to a decisive stage. If the Office of the President gives its approval, the Philippines could begin transforming PAGCOR from a combined casino operator and regulator into a dedicated supervisory authority — one of the most significant institutional changes to the country's gaming sector in decades.