GCG reviews decoupling of Pagcor functions

MANILA, Philippines — The Governance Commission for GOCCs (GCG) is evaluating the decoupling of the functions of state-run Philippine Amusement and Gaming Corp. (Pagcor) amid its continued conflicting roles.

GCG director Johann Barcena said the agency has asked Pagcor to submit the necessary documents to aid in the GCG evaluation that would determine if it will just stick to one mandate.

Pagcor regulates, authorizes and licenses games of chance, games of cards and games of numbers, particularly casino gaming in the Philippines.

But on the other side, it also operates over 40 casinos nationwide.

The GCG is looking at how much Pagcor is earning from both its casino and regulatory operations, as well as the number of personnel in both functions.

The GCG is also considering the Philippine offshore gaming operations (POGOs) being handled by Pagcor.

“There are many factors that we need to take into consideration to arrive at a good cost benefit analysis on whether or not we are supposed to decouple the functions of Pagcor,” Barcena said.

“Revenue loss on the part of Pagcor would affect not only GOCCs, but also other services that Pagcor is supposed to support such as socio civic projects,” he said.

GCG commissioner Gideon Mortel emphasized that Pagcor is a revenue generating agency and one matter to be evaluated is whether the removal of its commercial aspect would create a dent on revenue generation for the country.

GCG chairman Alex Quiroz could not say when the GCG would finish its evaluation study on Pagcor, which will still be recommendatory and will be subject to the approval of the Office of the President.

“There’s so many things to be considered, the disposition and the liquidation of the assets and the voluntary separation in so far as employment, but what matters most to me is the safeguard of the earnings,” Quiroz said.

“At present, I think the Pagcor perfectly regulates the gaming industry, but the problem is should we focus merely on the regulatory function of the Pagcor, we have to adapt schemes so as to increase and to ensure the income of Pagcor,” he said.

Quiroz argued that the government has to balance how much would be the loss should Pagcor focus merely on its regulatory functions.

An earlier government estimate showed that privatizing the gaming industry could yield around P300 billion in additional income per year.

As mandated by law, Pagcor is tasked to provide portions of its earnings to the Bureau of the Treasury, the Bureau of Internal Revenue, the Philippine Sports Commission, and local governments hosting Pagcor casinos, among others.

Pagcor is also tapped to provide funds for the implementation of vital laws such as the Early Childhood Care and Development (ECCD) program, the Sports Incentives and Benefits Act, the National Cultural Heritage Act, and the Renewable Energy Act.