Philippines Lawmakers Propose Renaming PAGCOR to PAGCAM for Gaming Regulatory Overhaul
Filipino lawmakers are advocating for a revamp of their country's gambling sector and reducing the government's involvement in managing slot machines, table games, and online gambling platforms.
Jonathan Flores, a senior representative in the Philippines House of Representatives and the head of the Committee on Government Reorganization, supports House Bill 3559, introduced by Rep. Ralph Recto, now Finance Secretary, in August 2022. The bill, which has been gathering dust in the capital Manila for nearly two years, aims to establish the Philippine Amusement and Gaming Commission (PAGCOM), a new government body to regulate the numerous commercial casinos throughout Southeast Asia and oversee online gaming.
PAGCOM is expected to replace the current regulator, the Philippine Amusement and Gaming Corporation (PAGCOR), which both regulates and operates commercial casinos under the Casino Filipino brand.
Conflict of Interest
PAGCOR manages commercial casino resorts in Manila and the capital's Entertainment City, as well as casino venues in the Philippines' freeport zones. PAGCOR also operates nine Casino Filipino branches and 33 Casino Filipino satellite locations.
For years, there have been demands for PAGCOR to dispose of its Casino Filipino venues and focus solely on regulation. During President Rodrigo Duterte's tenure, PAGCOR was preparing to sell these assets, but Duterte eventually decided that their performances were too profitable to part with.
However, under President Ferdinand Marcos Jr., who took office on June 30, 2022, the government has initiated the process of selling some PAGCOR satellites. Some PAGCOR casinos have been sold since Marcos arrived in office; however, the most profitable Casino Filipino branches in Manila, Davao, Cebu City, and other major cities and tourist destinations continue to be owned by PAGCOR.
PAGCOR plans to sell its remaining casinos by the end of the first quarter of 2026. PAGCOR Chief Executive Alejandro Tengco stated last year that the agency is updating the casinos' IT systems and security protocols to fetch a premium price for these locations.
Privatization is central to our master plan as PAGCOR shifts its focus to a purely regulatory role. Once these upgrades and renovations are completed, Tengco predicted that the casinos will attract more players, making them more enticing to potential investors once they are put up for sale.
"These projects and developments are geared towards our ultimate goal of decoupling PAGCOR’s role," Tengco stated at last year's G2E Asia expo. "Once we have a pure regulatory entity, you can expect a more dynamic and more lucrative Philippine gaming industry with a more level playing field that fosters fair competition and growth."
Market Opportunity
The Philippines' gaming sector has grown more appealing since China increased its scrutiny of junket operators in Macau. These travel organizers had previously targeted mainland Chinese residents to gamble in the Special Administrative Region, the sole region in the People's Republic where casinos are legal.
Chinese President Xi Jinping argued that the large outflow of capital through Macau posed national security risks. After a prominent junket tycoon was convicted on gambling charges and sentenced to 18 years in a Chinese prison, most junkets sought out more favorable operating environments, including the Philippines.
