The Philippine Amusement and Gaming Corporation (PAGCOR) is undergoing a significant restructuring that could have far-reaching consequences for the country’s gaming industry and its workforce. The plan, known as “decoupling,” would separate PAGCOR’s dual roles by relinquishing its casino operations while retaining its regulatory and licensing authority.
While management argues that the shift is necessary to align with global standards, ensuring regulators do not compete with the operators they oversee, the proposal has raised strong opposition. The PAGCOR Employees Association (PAGCEA) has warned that as many as 8,000 to 10,000 casino employees could lose their jobs. PAGCEA’s legal representatives argue that the restructuring may be unconstitutional, as only Congress has the authority to amend PAGCOR’s mandate. They also caution that a rapid sale of Casino Filipino assets could lead to undervaluation.
Adding to the tension are allegations from employees that PAGCOR has deliberately weakened its casinos to justify divestment. Reports cite reduced player incentives, fewer gaming tables, and the removal of long-standing customer benefits, all of which have discouraged patronage and lowered revenues.
The restructuring comes against the backdrop of a dramatic shift in market dynamics. Online gambling accounted for 53% of PAGCOR’s gross revenues in the first half of 2025, while its owned casinos generated just 3%. Analysts say this underscores why PAGCOR is focusing on digital oversight, though regulating online platforms presents greater challenges.
Despite the controversy, PAGCOR’s financial performance remains robust, with gross gaming revenues surpassing $3.8 billion in the first half of 2025. Chairman Alejandro Tengco has pledged to mitigate the impact on workers through redeployment, private sector absorption, or retirement packages. However, with Congress simultaneously debating stricter oversight of online gambling, the outcome of PAGCOR’s restructuring could reshape the balance between land-based and digital gaming in the Philippines.
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