PAGCOR's 'Very Soon' Regulatory Split Has Been Coming Since 2023

Signal Spotlight · Philippine iGaming, governance and regulatory structure

What happened

Tengco told the IAG Academy Summit 2026 at Newport World Resorts Manila that the Governance Commission for Government-Owned or -Controlled Corporations, which is reviewing PAGCOR's proposal to split its regulatory and commercial roles, is expected to issue a decision "very soon," as reported by GGRAsia and Tribune. Once GCG completes its review, it will forward a recommendation to the Office of the President, who would need to issue an executive order to actually implement the separation.

This is not a new announcement. Tengco disclosed PAGCOR's intent to eventually privatize its self-operated Casino Filipino chain and shift to a purely regulatory role as early as March 2023. He has repeated the same core message at conference after conference since: the IAG Summit in September 2025, again in April 2026, at the SiGMA Asia Summit in June 2026, where he said GCG's recommendation was expected "within the next month or so," and in July 2026, where he named August as the target for GCG's review to complete, with implementation possible "by the end of the year." That August target has already passed. GCG itself previously submitted studies on this same structural separation in 2017 and 2019, both of which went nowhere. This is the third serious attempt at the same reform in roughly a decade.

Why it matters

The timeline's repeated slippage doesn't weaken the underlying argument, and it's worth separating those two things clearly. PAGCOR today both operates around 40 Casino Filipino branches and satellite venues and sets the compliance rules for every other operator in the market, including its own commercial competitors. Tengco's own description of the conflict is consistent every time he restates it: "a referee cannot also be a player on the same field." That structural tension is real regardless of how many times the announcement gets repeated without a final decision attached.

A genuine separation would create a standalone regulator with no revenue interest in operator survival. Regulators without a commercial mandate tend to enforce more literally and escalate compliance action more readily, since there's no fee income or political cost of shutting down a state revenue source to weigh against enforcement decisions. Operators who have built PAGCOR relationships primarily through the commercial channel, because that's historically where practical leverage sat, would need to establish entirely separate engagement with whoever eventually runs the standalone regulatory body.

The legal complexity is also worth being precise about. PAGCOR's dual mandate is tied to Presidential Decree 1869 and Republic Act 9487, meaning a full separation likely requires more than an executive order alone to implement cleanly, a genuine complication that helps explain why two prior attempts, in 2017 and 2019, didn't result in actual change. That history is a reasonable basis for treating this round with real but calibrated attention, not dismissing it, and not treating "very soon" as a confirmed near-term event either.