PAGCOR Awaits GCG Decision on Separating Regulatory Duties from Casino Operations

Chairman and CEO Alejandro Tengco addressed attendees at an industry event in Manila during September 2026, where he stated that PAGCOR expects a decision soon from the Governance Commission for Government-Owned or-Controlled Corporations on its proposal to separate the agency's regulatory functions from its casino operations through Casino Filipino, and he cited the inherent conflict that arises when one body both regulates an industry and participates directly in its operations.

Core Elements of the Separation Proposal

The proposal centers on dividing PAGCOR's current structure so that regulatory oversight stands apart from day-to-day casino management, and Tengco explained that this step would address the built-in tension created by the agency's dual responsibilities while the matter remains under active review by GCG officials.

Observers note that the agency currently holds authority over licensing, compliance monitoring, and enforcement across the broader gaming sector at the same time it runs its own network of Casino Filipino venues, and the chairman's remarks highlighted how this overlap prompted the formal request for structural change.

Review and Approval Pathway

Under the outlined process the Governance Commission first evaluates the submission, and if GCG endorses the plan the package then moves to the Office of the President for final consideration through an Executive Order that would authorize the separation, according to details shared at the Manila gathering.

Those familiar with government procedures in the Philippines point out that such reviews often involve multiple rounds of assessment before any recommendation reaches the executive level, and the timeline for a GCG response remains the immediate focus following Tengco's September 2026 comments.

Statements from PAGCOR Leadership

Tengco made the remarks during the industry event, and he framed the proposal as a direct response to the conflict of interest that exists when a single entity serves as both operator and regulator, a situation he described as unsustainable over the long term for effective oversight.

Agency representatives have indicated that the separation would allow dedicated focus on each function without compromising either area, and the chairman emphasized that the request reflects ongoing efforts to align PAGCOR's operations with standard governance practices applied to other government corporations.

Context for the Current Review

The proposal reached GCG earlier in 2026 and now sits in the evaluation stage, while PAGCOR continues to manage both its regulatory portfolio and Casino Filipino properties until any approved changes take effect through presidential action.

Industry participants at the Manila event heard Tengco stress that the agency seeks clarity on the next steps, and the chairman noted that a favorable GCG decision would clear the path for the Office of the President to issue the necessary directive.

Potential Structural Changes

Should the Executive Order materialize, the regulatory arm would handle licensing and compliance independently of the operational arm that manages Casino Filipino locations, and this division would mirror arrangements seen in other jurisdictions where government bodies maintain clear boundaries between oversight and commercial activities.

Data from comparable regulatory frameworks in places such as Canada show that separated roles often streamline enforcement processes, and PAGCOR officials have referenced these models during internal discussions leading to the current submission.

Next Milestones

The immediate milestone remains the GCG decision, and once that outcome is known the agency can determine whether further documentation or presentations are required before the matter advances to the Office of the President, according to statements made in September 2026.

Those tracking the process note that an endorsement from GCG would mark a significant procedural step, yet the final implementation still hinges on presidential approval through the Executive Order mechanism described by Tengco.

Conclusion

PAGCOR's request for structural separation continues through the GCG review phase, and Chairman Tengco's September 2026 remarks at the Manila event provided the clearest public update on the proposal's status and the rationale centered on resolving the regulatory-operational conflict, with the pathway to an Executive Order remaining contingent on commission endorsement.