Contemplating the Privatization of State-Owned Casinos in the Philippines: A Shift under Alejandro Tengco's Leadership
Suggested Transition to Private Ownership Proposed for State-Run Gambling Establishments by New PAGCOR Leader
The newly appointed PAGCOR head, Alejandro Tengco, has floated the idea of reassessing PAGCOR's dual role as operator and regulator of casinos in the Philippines. During a hearing with the House appropriations committee, Tengco discussed the possibility of considering the privatization of state-owned casinos, given the need to clarify PAGCOR's role.
This proposed change comes under the increased pressure from President Ferdinand Marcos and his team to clearly separate PAGCO's regulatory and operational functions. On August 29, Finance Secretary Benjamin E. Diokno issued a statement supporting this move, suggesting the privatization of state-owned casinos.
Alejandro Tengco was sworn in as the new CEO and chairman of PAGCOR, the Philippine gambling regulator, just nine days prior by President Marcos, who won the presidential elections earlier this year.
Tengco's comments on casino privatization follow President Marcos's efforts to push PAGCOR towards a clear separation of its roles. However, it's worth noting that Marcos appointed Tengco as PAGCOR's head, despite stating earlier in July that no such change was on the horizon.
Stepping into Andrea Domingo's Footsteps
Taking over the position from the successful reign of former PAGCOR CEO and chairwoman Andrea Domingo, who was appointed in 2016 by former president Rodrigo Duterte, Tengco faces big shoes to fill. Over the six years of Domingo's tenure, PAGCOR amassed revenues exceeding PHP300 billion ($5.5 billion) through efficient regulatory procedures and practices.
Moreover, Domingo managed to recover PHP15 billion owed by Philippine Offshore Gaming Operators (POGOs).
A Previous Plan for Casino Privatization
The concept of privatizing state-owned casinos is not a novel idea. President Rodrigo Duterte attempted to push for casino sales in 2016 to bolster the national budget. An initial plan to sell 17 state-owned casinos in 2018 was proposed, but former PAGCOR CEO and chairwoman Andrea Domingo eventually scrapped the plans as the casinos emerged as significant revenue generators.
As of April-May 2025, the privatization of state-owned casinos under PAGCOR Chairman Alejandro Tengco remains a key policy directive mandated by President Ferdinand Marcos Jr. in 2024, with legislative and structural changes underway. The separation of PAGCOR’s regulatory and operational roles aims to enhance regulatory credibility while boosting private sector participation. The privatization bill pending in the 19th Congress aims to address conflicts of interest by transferring state-run casino operations to private entities while retaining PAGCOR’s oversight duties.
Under Tengco's leadership, PAGCOR reported a 23% year-on-year net income increase (PHP3.43B to PHP4.2B) in Q1 2025, demonstrating operational stability amid reforms. The restructuring will also clarify licensing tracks into domestic/PIGSO, offshore POGO, and eco-zone operators (CEZA/APECO/AFAB), with stricter verification requirements for legitimate operators. Current hallmarks include license verification, compliance checks, and transparent payment descriptors such as "Pagcor-XYZ". The reforms are expected to finalize privatization by removing PAGCOR from direct casino management.
- Alejandro Tengco, PAGCOR's new CEO and chairman, has suggested reassessing PAGCOR's dual role in the casino industry, considering the privatization of state-owned casinos.
- During a hearing with the House appropriations committee, Tengco discussed this idea, given the need to clarify PAGCOR's role, a move supported by Finance Secretary Benjamin E. Diokno.
- This proposed change follows President Ferdinand Marcos's efforts to push PAGCOR towards a clear separation of its regulatory and operational functions in the casino-and-gambling industry.
- Tengco's comments on casino privatization come just nine days after his swearing-in, appointed by President Marcos, who won the presidential elections earlier this year.
- Previous plans for casino privatization were attempted by President Rodrigo Duterte in 2016, but former PAGCOR CEO and chairwoman Andrea Domingo scrapped the plans due to the casinos being significant revenue generators.
- As of April-May 2025, the privatization of state-owned casinos under PAGCOR Chairman Alejandro Tengco remains a key policy directive, with legislative and structural changes underway, aiming to boost private sector participation and enhance regulatory credibility in the casino-gambling industry.
