PAGCOR Awaits Governance Commission Review on Dividing Casino Operations from Regulatory Duties

Chairman and CEO Alejandro Tengco outlined the status of a separation proposal at a Manila industry gathering in September 2026, noting that the Governance Commission for Government-Owned or-Controlled Corporations continues its review of the plan to split PAGCOR's roles as both casino operator and gaming regulator. The commission's decision remains pending, and once finalized it would advance to the Office of the President for consideration through an executive order that could authorize the structural change.

PAGCOR has maintained simultaneous responsibility for running its own casinos while overseeing the broader gaming sector, a setup that has drawn attention because private operators have expanded their presence in recent years. Tengco's remarks focused on the timeline for the Governance Commission assessment rather than specific outcomes or internal debates.

Current Structure and the Separation Proposal

The agency operates multiple casino properties across the Philippines at the same time it issues licenses, sets standards, and monitors compliance for all gaming activities. Observers note that this combination places the organization in a position where it both participates in the market and enforces rules that affect competitors, which has prompted internal discussions about potential reorganization. The proposal under review aims to isolate the operational side from the regulatory functions so that each area reports through distinct channels.

According to statements delivered at the September 2026 event, the Governance Commission received the formal submission and has been examining documentation that details how assets, personnel, and oversight responsibilities might be reassigned. Tengco indicated that a decision could arrive in the near term, after which the Office of the President would evaluate whether an executive order provides the necessary legal framework for implementation.

Timeline and Next Steps Outlined by Agency Leadership

Process steps described by Tengco follow a sequence that begins with the Governance Commission's assessment, moves through presidential review if approved, and concludes with the issuance of an executive order if the administration chooses to proceed. No specific dates beyond the expectation of a prompt ruling were provided, yet the chairman emphasized that the file remains active and under active consideration.

Agency records show that PAGCOR has managed both revenue-generating casino operations and regulatory duties since its establishment, with the dual mandate written into its charter. The current review represents an effort to address that original framework through administrative restructuring rather than legislative amendment.

Context of Private Sector Growth in Philippine Gaming

Private sector participation in gaming has increased steadily, with additional licensed operators entering the market and contributing to overall industry volume. This expansion has highlighted the distinction between PAGCOR's commercial activities and its role in setting and enforcing regulations that apply uniformly across all participants. Data from industry reports indicate rising numbers of integrated resorts and electronic gaming facilities operated by private entities alongside PAGCOR's own properties.

Government-owned or-controlled corporation rules require oversight by the Governance Commission when structural changes of this nature are proposed. The commission evaluates proposals against criteria that include governance standards, efficiency, and alignment with national policy objectives before forwarding recommendations.

Potential Pathways Following Commission Decision

Should the Governance Commission endorse the separation plan, the Office of the President would receive the file for final determination. An executive order would then serve as the mechanism to redefine reporting lines, redistribute functions, and establish any new entities required to handle regulatory duties independently. If the commission requests modifications or additional information, the timeline could extend while PAGCOR supplies further details.

Agency officials have not released internal projections on staffing adjustments or asset transfers, focusing instead on the procedural milestones that must occur before any reorganization takes effect. Public statements continue to center on the review status rather than anticipated outcomes.

Conclusion

The proposal to separate PAGCOR's operational and regulatory functions remains under active review by the Governance Commission as of September 2026, with Chairman Tengco confirming that a decision is anticipated shortly. Once that ruling is issued, the matter would move to the Office of the President for consideration of an executive order. The process reflects ongoing efforts to align the agency's structure with evolving industry conditions driven by increased private sector involvement. Further updates will depend on the commission's findings and subsequent administrative actions.