PAGCOR confirms it will cease casino operations by end of 2025
A plan is underway to get the Philippine Amusement and Gaming Corporation (PAGCOR) out of the casino operations business. The intention was to assume the role of mere regulator of the country's gambling industry, and the move moved quickly.
PAGCOR Chairman and CEO Alejandro Tengco confirmed some details of the regulator’s development at the IAG Academy Summit on September 13. He sees the implementation of the system as a means to streamline operations and prioritize program planning efforts to achieve a full transition by the end of 2025.
PAGCOR decided to assume only regulatory functions, which are crucial for the proper development of the Philippine gaming industry. Tengco believes that this move is critical to its mission of promoting fair competition and ensuring the development and prosperity of all participants within the ecosystem.
In March, Tengco reiterated PAGCOR's intention to divest some small public casinos. In the announcement, he expressed the company's hope to earn about 80 billion pesos ($1.41 billion) from the sale of its Philippine casino network.
This department will impact employees
Efforts to transform the Philippine Gaming Corporation (PAGCOR) into a purely regulatory entity have been on the agenda for years but have so far failed to make any significant progress. With calls for action growing recently following several high-profile scandals surrounding gambling companies and human trafficking, PAGCOR had no choice but to respond.
However, the split will have some impact on PAGCOR's workforce. In his recent speech, Tengco said the decision to take a purely administrative role could have a detrimental impact on the workforce. To mitigate any possible impact, PAGCOR is trying to develop plans for employees who may be laid off if the casino is privatized.
Tengco added that PAGCOR is significantly improving its organizational framework and operating methods. He claimed that this will help the company "become the gold standard in gaming in Asia" and give the Philippines a competitive edge in the global gaming space.
PAGCOR strengthens gambling supervision
The purpose of this divestment is to give PAGCOR more opportunities to adequately monitor the gaming industry. However, instead of waiting until 2025, they are already making significant changes.
Slot machine providers in the Philippines will be subject to stricter accountability starting December 31, the regulator said at last week's IAG Academy Summit. All games submitted for approval must demonstrate compliance with the new EGM Technical Standard Version 1.1.
Starting next June, all non-compliant games will be banned from distribution in the Philippines. However, this only applies to new games. Existing games that do not meet the new technology's standards but are already available at casinos are excluded.
The standards are similar to those introduced in Macau about a year ago and include requiring slot machines to be equipped with timers. It also requires that the "program or logic portion" of the slot - the brains of the machine - carry a "tamper-evident seal" to prove that no one has tampered with the device.
All machines must also be splash-proof. Another requirement is that the machine can record and display the last 100 events such as spins, payouts, etc.
The new rules come into effect on January 1, 2024.
Read also:
- City of Dreams Mediterranean cuts 181 jobs, blames Hamas for war with Israel
- MGM may wait before making new offer to Entain
- Prague Gaming is forming a committee to explore a possible sale
- Las Vegas crime: Tourist shot to death at a Las Vegas hotel
Source: www.casino.org
