THE Philippine Amusement and Gaming Corp. (PAGCOR) cannot continue in its dual role of gaming industry operator and regulator, the Department of Finance (DoF) said.
“The best practice is to separate… they cannot be both an operator (and regulator). That is conflicting,” Finance Secretary Benjamin E. Diokno said in a briefing on Friday.
When asked about President Ferdinand R. Marcos, Jr.’s position on PAGCOR’s dual role, Mr. Diokno said that Mr. Marcos “knows it’s not smart to have the same operator and (regulator). That’s a conflict of interest.”
The DoF has previously proposed to privatize PAGCOR’s gaming operations.
In March, Senator Mary Grace Poe-Llamanzares pushed a proposal to relieve PAGCOR of its role as a casino operator so it can focus on regulating the gaming sector.
PAGCOR has said it expects to generate about $1.47 billion from the sale of its 41 casinos.
Mr. Diokno also noted that such a privatization exercise will not require legislation.
“They can turn it over to us. It can also be done through the Governance Commission for Government-Owned or -Controlled Corporations (GCG). PAGCOR is a corporation. What GCG usually does is to propose an executive order,” he added.
Last week, PAGCOR announced that it was launching its own online casino by the first quarter of next year.
“It will allow players to interact with the digital counterparts of traditional casino games. It will also transcend physical boundaries and will enable users from around the world to interact and participate in virtual environments,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said earlier.
“It can reach a global audience and can establish a presence in virtual communities of avid gamers. It will likewise offer an opportunity to tap into new markets and diversify its customer base,” he added.
In the first six months, PAGCOR revenue rose 36% to P36.2 billion. Income from gaming operations and regulatory fees from licensees rose 38% to P34.12 billion.
“For the second half, our total income from gaming operations is projected to be P37 billion, which brings to a total of P71 billion the projected income from gaming operations by the end of 2023,” Mr. Tengco added.
PAGCOR hopes to generate P272.74 billion in revenue by the end of the year. — Luisa Maria Jacinta C. Jocson
