With gaming revenues expected to fall short of target, the Philippine Amusement and Gaming Corp. (Pagcor) signaled that a decision on decoupling its dual role could come in the next 30 days, potentially reducing costs and allowing the agency to focus solely on regulation.
Pagcor Chairman and CEO Alejandro H. Tengco told reporters on the sidelines of the IAG Academy Summit on Tuesday that the agency now sees gross gaming revenues (GGR) reaching at least P350 billion this year, below its P397-billion target.
Already eight months into the year, Tengco said the original target is now on the ‘high side,’ prompting a more ‘conservative’ outlook for the rest of the year.
‘Until everything-the economic condition of our country, even our neighboring countries-until these uncertainties regarding the Middle East conflict is settled, I think we will just have to bear with whatever we can have,’ Tengco said.
The slowdown, nevertheless, gives the state gaming regulator an opportunity to reassess its operations and strengthen its guidelines and structures after a period of rapid expansion in the gaming industry, he added.
One of the major reforms being pursued by Pagcor is the proposed decoupling of its role as operator of casino chain Casino Filipino and its regulatory functions.
Tengco told reporters that the Governance Commission for GOCCs (GCG) could make its recommendation on the proposal within the next 30 days, as Pagcor has already submitted all the documents and data it requested since the last quarter of 2025.
Once the GCG completes its review, it will endorse the proposal to the Office of the President for evaluation. The President’s executive order, however, could be issued in early 2027, Tengco said.
Selling the 38 Casino Filipino sites and branches, which Tengco said are ‘bleeding heavily at the moment,’ could yield about P20 billion for Pagcor and reduce operation costs.
Despite this, Tengco said foreign companies, local businessmen and existing gaming licensees have expressed interest in acquiring Casino Filipino-drawn with the appeal of its locations in key cities, providing geographic exclusivity.
Pagcor-operated casinos have contributed P6.081 billion in the GGR as of the first half of the year, contributing 3.46 percent to the total industry GGR. However, this was down by 6.57 percent year-on-year from P6.481 billion.
First-half income generated from Casino Filipino also slipped by 8.67 percent year-on-year.
‘For me, it is not anymore looking at how much we will generate [from privatization]. The most important thing is we will strengthen Pagcor,’ Tengco said.
By becoming solely a regulator, Tengco said Pagcor’s main and primary focus would be crafting better regulations for the gaming industry.
‘When Casino Filipino was launched way, way back, decades ago, it was clearly a monopoly. There was no competition,’ Tengco said. ‘It is already wrong that you will compete with your licensees. You gave them the license, then you will compete against them.’
The decoupling, he said, would prepare Pagcor for a more stable outlook as the gaming industry adjusts to weaker market conditions.
In the first half of the year, GGR fell by 18.16 percent to P175.738 billion from P214.752 billion in the same period in 2025, as inflation and geopolitical tensions in the Middle East weighed on discretionary spending.
Pagcor’s total revenue also dropped by 26.64 percent to P43.32 billion in the first half from last year’s P59.05 billion due to lower earnings from gaming operations.