Current Structure and the Need for Change

PAGCOR operates under a dual mandate that requires it to regulate the broader gaming sector and simultaneously manage its own casino properties, and this arrangement has persisted for years yet now faces formal reconsideration because the agency itself has identified the inherent conflict in enforcing rules while also serving as an operator; Tengco explained during the Manila event that the proposal aims to resolve this tension by creating distinct functions for each role.

Observers note that the regulatory arm would focus on licensing, compliance monitoring, and policy development across the industry, whereas the operational side would handle the business activities of PAGCOR-owned casinos without the added layer of self-regulation, and the separation would require legislative or executive backing to take effect.

Details of the Proposal Under Review

The submission to the GCG outlines a framework in which PAGCOR's regulatory functions would transfer to a new or reorganized entity, while its casino operations would continue under a separate corporate structure, and this approach mirrors efforts in other jurisdictions where governments have divided similar responsibilities to enhance transparency and accountability; according to Tengco's remarks, the proposal has already undergone internal PAGCOR review and now awaits the GCG's assessment.

Those familiar with the process indicate that once the GCG completes its evaluation, the matter moves directly to the Office of the President, where an Executive Order could formalize the split and set implementation timelines, and this pathway avoids the need for immediate congressional action while still providing the legal foundation for structural reform.

Industry participants at the September 2026 event heard Tengco emphasize that prompt resolution from the GCG would allow the agency to prepare for the transition without prolonged uncertainty, and he highlighted that the current model places PAGCOR in the position of regulating competitors while operating its own venues, a situation that the proposed separation seeks to eliminate.

Timeline and Next Steps

Since the proposal reached the GCG, agency leadership has expressed confidence in a timely review process, and Tengco stated that expectations center on receiving feedback in the coming weeks rather than months, after which the Office of the President would consider the recommendation for potential implementation; this sequence keeps the initiative on an administrative track that can move efficiently once approvals are secured.

Stakeholders across the Philippine gaming sector continue to monitor developments because any approved separation would affect licensing procedures, revenue collection mechanisms, and oversight protocols, and the GCG's role as the reviewing body ensures that government-owned corporations align with broader governance standards before structural changes occur.

Statements from PAGCOR Leadership

Tengco delivered the update during a public industry event, underscoring that PAGCOR initiated the proposal internally after recognizing the operational and regulatory overlap, and he pointed out that the agency remains committed to maintaining stable casino operations throughout any transition period; the remarks provided the clearest public timeline available, with the GCG decision positioned as the immediate next milestone.

Further details shared at the gathering clarified that the separation would not disrupt existing Casino Filipino locations or ongoing regulatory activities in the short term, yet it would establish clearer lines of authority once fully enacted, and Tengco invited continued dialogue with industry partners to prepare for the adjustments that would follow an Executive Order.

Conclusion

The proposal now sits with the GCG for evaluation, and its eventual movement to the Office of the President represents the formal route toward implementing a divided structure for PAGCOR's regulatory and operational arms, while the September 2026 announcement from Chairman Tengco has placed the topic firmly on the agenda for Philippine gaming governance in the months ahead.

As the review advances, participants in the sector will track the GCG's response and any subsequent executive action, since these steps determine whether and how the long-standing dual role evolves into separate entities focused on oversight and business operations respectively.