The Philippines may be moving closer to resolving one of the gaming industry’s most unusual conflicts of interest.
The Philippine Amusement and Gaming Corporation, better known as PAGCOR, regulates private casino operators while also competing against them through its own Casino Filipino network.
That dual role could now be approaching its end.
PAGCOR Chairman and CEO Alejandro Tengco has said that the Governance Commission for Government-Owned or Controlled Corporations is expected to submit its recommendation on the agency’s proposed restructuring to the Office of the President in August.
The plan would separate PAGCOR’s regulatory and commercial functions, allowing the agency to become a pure regulator while preparing Casino Filipino for privatisation.
No final decision has been announced, and the assets are not formally on the market. However, a presidential review would move the proposal closer to implementation after years of discussion.
A regulator that competes with its licensees
PAGCOR issues licences, collects regulatory fees and supervises the Philippine gaming market.
At the same time, it operates more than 40 Casino Filipino branches and satellite venues across the country.
That means the agency is responsible for regulating companies that compete directly with its own properties.
PAGCOR has argued that separating the two roles would improve regulatory independence and create a more level playing field for private operators.
The reform would also bring the Philippines closer to the structure used in markets where gambling regulators do not operate commercial gaming businesses.
Tengco has previously described the issue in simple terms: the regulator should not be both the referee and a player in the same market.
What could be sold
PAGCOR has previously estimated that the privatisation of Casino Filipino could raise between PHP30 billion and PHP50 billion, or approximately US$530 million to US$880 million.
However, Casino Filipino is not a single uniform business.
The network includes venues of different sizes, locations, lease structures and levels of profitability. Some properties may attract established Philippine operators, while others could require investment, consolidation or redevelopment.
A future sale could therefore take several forms.
The government might sell the network as one portfolio, divide it into regional groups or dispose of individual properties separately.
Employee protection will also be a major issue. PAGCOR has said that workers could be redeployed, absorbed by buyers or offered retirement arrangements, depending on the final structure.
Why the timing matters
The possible restructuring comes while the Philippine gaming market is changing rapidly.
Digital and electronic gaming have become increasingly important to PAGCOR’s revenue, reducing the agency’s dependence on its own physical casinos.
That raises a basic strategic question: does the government still need to operate a nationwide land-based casino network if PAGCOR can generate revenue through regulation, licensing and taxation?
Privatisation could provide the state with a substantial one-time payment while removing the conflict between regulation and commercial competition.
But the government would also give up the future operating income generated by Casino Filipino.
The value of the reform will therefore depend on more than the sale price. The government will need to consider the long-term balance between privatisation proceeds, regulatory income and the future competitiveness of the Philippine casino market.
What happens next
The immediate step is the Governance Commission’s recommendation.
The Office of the President would then need to determine whether the restructuring can proceed through an executive order or whether additional legislation will be required.
PAGCOR’s current legal mandate includes both regulatory and commercial responsibilities, meaning the process may be more complicated than simply approving an asset sale.
Operators and investors will be watching several questions:
Will Casino Filipino be sold as one network or divided into separate assets?
Will existing operators be allowed to acquire multiple properties?
Which leases and operating rights can be transferred?
How will employees and existing commercial agreements be treated?
Will the government impose conditions on buyers?
The Philippines has discussed separating PAGCOR’s two roles for years.
The difference now is that the proposal could soon reach the presidency — bringing the country closer to a gaming market where the regulator no longer competes with the companies it supervises.
East Asia Reports
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Author — Adrià Mas Rodriguez