GCG Review Continues as Q3 Deadline Nears
Alejandro Tengco, chief executive officer and chairman of the Philippine Amusement and Gaming Corporation (PAGCOR), stated that the agency expects a formal decision on separating its regulatory and commercial functions very soon. The comment marks a pivotal moment in a long-standing debate over the structure of the Philippines’ gambling regulatory framework.
In This News
Tengco made the remarks during the IAG Academy Summit 2026, held at Newport World Resorts in Manila. He noted that the Governance Commission for Government-Owned and Controlled Corporations (GCG) has been reviewing the possibility of decoupling since 2022. As of his address, the proposal remained under active review by the commission.
According to NEXT.io, the commission’s recommendation was previously expected in the early part of the third quarter of 2026. The third quarter in the Philippines concludes on 30 September 2026. Tengco indicated that while the process has been ongoing, the final decision is now anticipated to be released shortly.
Structural Conflict Between Regulator and Operator
The proposed decoupling involves the sale of PAGCOR’s portfolio of casino venues, including its flagship Casino Filipino brand. In the current structure, PAGCOR serves as both the primary regulator of the industry and a significant commercial participant, operating its own gaming establishments.
Tengco argued that this dual role creates an inherent conflict of interest. “You do not want a regulator to regulate its own operations,” he said. He observed that the viability of a structure where the regulator is also a major operator has long been in question. The country’s gambling ecosystem has changed considerably since PAGCOR’s establishment, with more private-sector licences granted over the years, creating competitive friction between the regulator and the industry.
Tengco emphasized that the motivation for the change is not financial. “The decoupling is not about how much revenue the organisation can generate,” he said. Instead, he framed the move as necessary for institutional integrity. “Strengthening PAGCOR, and with its strength, we can do our work better.”
Timeline for Privatization and Executive Action
If the GCG approves the proposal, it will be passed to the president’s office for further evaluation. NEXT.io previously understood that an executive order from the president’s office was expected by the fourth quarter of 2026. However, Tengco acknowledged that delays in the review process could push this timeline back.
PAGCOR has previously expressed hope to privatize Casino Filipino by late 2026 or 2027. Tengco noted that the decoupling policy has retained public support from senators and industry leaders since the review began in 2022. He added that the industry is evolving at an unprecedented pace, particularly in electronic gaming, and that regulatory institutions must adapt rapidly to remain effective.
The next procedural step awaits the GCG’s final recommendation. Once issued, the proposal will move to the executive branch for the issuance of an executive order, which would formally mandate the separation of PAGCOR’s commercial assets from its regulatory mandate.
Why It Matters
The separation of PAGCOR's regulatory and commercial roles would fundamentally alter the competitive landscape for licensed operators in the Philippines. By removing the regulator as a direct market participant, the move aims to resolve long-standing conflicts of interest. The timeline is critical, as delays in the GCG's review could push the executive order past Q4 2026, affecting the privatization schedule for Casino Filipino and the broader stability of the national gaming ecosystem.
FAQ
When is the PAGCOR decoupling decision expected?
PAGCOR CEO Alejandro Tengco stated that a decision is expected 'very soon.' The Governance Commission for Government-Owned and Controlled Corporations (GCG) has been reviewing the proposal since 2022, with the recommendation originally anticipated in early Q3 2026.
What does the PAGCOR decoupling involve?
The decoupling involves the formal separation of PAGCOR's regulatory functions from its commercial operations. This includes the sale of its portfolio of casino venues, such as the Casino Filipino brand, to resolve the conflict of interest where the regulator also operates as a major player.
When will Casino Filipino be privatized?
PAGCOR has expressed hope to privatize Casino Filipino by late 2026 or 2027. The specific timeline depends on the GCG's final recommendation and the subsequent issuance of an executive order by the president's office, which was previously expected by Q4 2026.
Who is pushing for the PAGCOR decoupling?
The decoupling policy has had support from senators and industry leaders since 2022. PAGCOR itself, under CEO Alejandro Tengco, has advocated for the change, arguing that a regulator should not regulate its own operations to maintain institutional integrity.
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