The Philippine Amusement and Gaming Corporation’s (PAGCOR) plan to separate its regulatory and casino-operating functions could move closer to approval in August, when a government commission is expected to submit its recommendation to the Office of the President.
PAGCOR Chairman and CEO Alejandro Tengco said the Governance Commission for Government-Owned or -Controlled Corporations (GCG) is expected to complete the recommendation next month, according to the Philstar.
“The Office of the President will study that so it will be at the end of this year. It will be done through an Executive Order,” Tengco was quoted as saying.
The proposed restructuring would turn PAGCOR into a purely regulatory body while paving the way for the privatization of its Casino Filipino operations, addressing longstanding concerns over the agency’s simultaneous roles as casino operator and industry watchdog.
GCG Chairperson Marius Corpus told the Philippine Star that the review remained ongoing, with a recommendation likely to be released during the third quarter once the required processes were completed.
BusinessWorld separately quoted Tengco as saying that completing the separation would form part of his legacy at the state-run gaming agency.
“I think this will be my legacy to be able to decouple, and PAGCOR will only be a regulator,” he said.
Tengco has previously targeted completing the privatization of PAGCOR’s casino assets before the end of President Ferdinand Marcos Jr.’s term in 2028.
Second-half recovery expected
The PAGCOR chief also expects the Philippine gaming market to improve during the second half of 2026, although second-quarter performance is likely to remain weak.
BusinessWorld reported that Tengco expects electronic gaming to be the main growth driver during the third and fourth quarters as lower fuel prices provide some relief to household spending.
“Hopefully, now that fuel prices have gone down, the third and fourth quarters will improve,” Tengco was quoted as saying.
According to the Philippine Star, Tengco said the Middle East conflict had weighed on tourism, VIP play and domestic online gaming expenditure, particularly among lower-income consumers.
He indicated that second-quarter gross gaming revenue could remain broadly in line with the first quarter but would be significantly lower than in the corresponding period of 2025.
Philippine gaming GGR declined by 15.9 percent year-on-year to PHP87.6 billion ($1.42 billion) in the first quarter of 2026, as weaker electronic gaming activity weighed on the market.
PAGCOR has yet to release official industry figures for the three months ended June 30th.
