PAGCOR chairman and chief executive officer Alejandro Tengco said privatizing casino operations will be a game-changer for the Philippine gaming sector.
The Philippine Amusement and Gaming Corp. (PAGCOR) is embarking on a strategic shift to privatize its casino operations, a move seen as crucial in enhancing the local gaming industry’s competitiveness in the face of growing regional threats.
Chairman and chief executive officer Alejandro Tengco emphasized that privatization and stricter regulations would create a level playing field, attracting investors and global gamers to the Philippines.
“We want to transition PAGCOR into a purely regulatory body and move away from a casino operator. It is unfair for our licensees (private casino operators) if PAGCOR has regulatory control while operating casinos. We have to ‘decouple’ our regulatory and from operation function,” Tengco said in a media briefing.
He cited other regulatory bodies, such as the Department of Energy (DoE), which does not operate any power plants or power distribution facilities, and the Department of Transportation, which is engaged in the transport business, as examples.
Tengco explained that decoupling or privatizing casino operations will increase PAGCOR’s income for the national coffers because the agency would have significant savings from renting casino facilities and a reduced number of personnel.
“PAGCOR is renting all our Casino Filipino operations. If they are privatized, we will have huge savings in rentals,” he said.
Thailand’s entry: A major challenge
During a recent briefing, Tengco acknowledged that Thailand’s impending legalization of gambling poses a “big threat” to the Philippine gaming sector. Currently, the country is Asia’s second-largest gaming destination after Macau. However, Thailand’s massive tourism market and its plan to license land-based and online casinos could shift the regional dynamics.
“Thailand has a significant advantage due to its many tourist arrivals. If they successfully legalize gambling, it could pose a strong challenge to our gaming industry,” Tengco stated.
Adding to the competition, Japan is also opening a casino, further intensifying the race to attract international players. This has prompted PAGCOR to take proactive measures to maintain the Philippines’ competitive edge.
The need for reform: Strengthening the industry
To stay ahead, PAGCOR is implementing stringent regulatory measures. This includes enforcing stricter compliance requirements, urging casino lessors to modernize outdated facilities, and introducing nearly 2,000 state-of-the-art slot machines.
These changes aim to enhance the gaming experience and ensure the industry remains appealing to domestic and international gamblers.
Moreover, Tengco reaffirmed PAGCOR’s commitment to transitioning into a purely regulatory body, ensuring transparency and eliminating potential conflicts of interest. “By decoupling, we will be able to show the world that we are fair and that there is no conflict of interest,” he explained.
Privatization: A game-changer
One of PAGCOR’s major initiatives is privatizing its over 40 state-run casinos, which will commence next year. Tengco believes this move will generate substantial revenue for the government and make the industry more attractive to private investors, fostering a more dynamic and competitive market.
Privatization is expected to align the Philippines with global gaming standards, making it a more appealing destination for international casino operators.
By focusing solely on regulation, PAGCOR can establish a fair and balanced environment that ensures responsible gaming while promoting sustainable growth in the sector.
A bright future for Philippine gaming
With these reforms, PAGCOR aims to solidify the Philippines’ position as a premier gaming destination in Asia.
By privatizing casinos and strengthening regulations, the country is poised to attract more investors, high-rolling players, and tourism dollars, ensuring long-term growth and stability for the gaming industry.
As competition in the region heats up, Tengco’s vision for PAGCOR represents a decisive step toward modernizing and future-proofing the Philippine gaming sector. If executed effectively, these measures could redefine the industry’s landscape, securing the country’s reputation as a world-class gaming hub.