UMVA has learned that a major development is on the horizon for the Philippine gaming industry, as the Philippine Amusement and Gaming Corp. (PAGCOR) awaits guidance from Malacañang on its proposal to separate its regulatory and casino operating functions.
This move could potentially reshape the industry, with PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco indicating that the corporation is expecting a recommendation from the Governance Commission for Government-Owned or -Controlled Corporations (GCG) within the next two months.
The proposed separation of functions aims to address concerns over a potential conflict of interest, as PAGCOR currently operates as both a casino operator and industry regulator. This development has been in the works for some time, with the GCG submitting studies on the matter to the Office of the President in 2017 and 2019.
UMVA can exclusively reveal that PAGCOR's plans to separate its functions could pave the way for the privatization of its Casino Filipino operations. However, Tengco emphasized that this process will depend on approval from the Office of the President, with a possible timeline of two months.
In a call to action, Tengco urged the gaming industry to prioritize responsible gaming and player protection. He stressed that innovation must be matched with accountability, ensuring that industry progress aligns with social responsibility and public welfare.
The industry has shown promising growth, with electronic gaming driving a 6.39% increase in gross gaming revenue (GGR) to nearly P400 billion in 2025. However, recent market trends indicate a need for sustainable and well-regulated growth, with total GGR declining 15.87% year on year to P87.60 billion in the first quarter of 2026.
Licensed casinos generated P44.52 billion and accounted for 50.83% of total industry revenue in the first quarter. Tengco emphasized that the true measure of the industry's success lies in its ability to ensure gaming remains properly regulated, socially responsible, and beneficial to local communities.
SiGMA World Chief Executive Officer Emily Micallef highlighted the Philippines' emergence as one of Southeast Asia's most lucrative regulated gaming markets. With Asia becoming a global powerhouse in the industry, the Philippines has surpassed $1 billion in monthly revenue, making it Asia's most lucrative regulated market.
Micallef noted that the Philippines has become the regulatory anchor of the region, aligning with SiGMA's mission to promote sustainable industry growth through responsible regulation. As governments and businesses recognize the importance of regulation, the Philippines is poised to continue its growth trajectory.
