The newly appointed chairman and CEO of the Philippine Amusement and Gaming Corporation (Pagcor), Alejandro Tengco, recently highlighted the need for the regulatory body to determine whether it should continue operating as both a regulator and an operator. Tengco addressed this issue during a meeting of the Philippine House of Representatives’ Congress on Appropriations. He acknowledged the conflict of interest inherent in Pagcor’s dual role and emphasized the importance of establishing a clear distinction between regulation and operation.
Concerns over Conflict of Interest:
Congressman Rufus Rodriguez raised the issue of Pagcor’s simultaneous role as a regulator and operator during the meeting, citing it as a potential conflict of interest. Rodriguez argued that a level playing field cannot exist when the same entity is responsible for both regulation and operation. He proposed the creation of a casino regulatory authority through legislation to address this concern.
Pagcor’s Commitment to Resolving the Issue:
In response to Congressman Rodriguez’s question, Chairman Tengco acknowledged the validity of the concerns regarding Pagcor’s dual role. He stated that differentiating between a regulator and an operator is a priority for the current administration of Pagcor. Tengco expressed his belief that an immediate study and decision on the matter are necessary. He also mentioned that the Secretary of Finance has encouraged Pagcor to relinquish its operational responsibilities for the approximately 40 casinos it currently operates, in order to establish a clear demarcation between the regulatory and operational aspects.
Focus on Regulation and Privatization:
Chairman Tengco emphasized Pagcor’s commitment to resolving the conflict of interest and indicated that the regulatory aspect would be the primary focus moving forward. He suggested the possibility of privatizing the casinos, stating that if this decision were made, there would no longer be a need for Pagcor to function as a casino regulator. Tengco pledged to submit a comprehensive report outlining Pagcor’s final decision on the matter, highlighting the direction the organization intends to take.
Importance of Legislative Action:
Regarding the creation of a casino regulatory authority, Tengco expressed Pagcor’s eagerness to address this issue promptly. The organization aims to work closely with lawmakers to develop the necessary legislation. The focus of this legislative action would be to establish a robust regulatory framework that ensures fairness, transparency, and accountability within the casino industry. By separating the roles of regulator and operator, Pagcor seeks to strengthen the integrity of the regulatory process and create a more level playing field for all stakeholders.
Pagcor’s newly appointed chairman and CEO, Alejandro Tengco, acknowledges the need for the regulatory body to decide whether it should function solely as a regulator or as both a regulator and an operator. This issue of conflict of interest has gained attention, and Tengco highlights its importance.
Pagcor intends to conduct a comprehensive study to make an informed decision on the matter, aligning with the Secretary of Finance’s encouragement to separate its regulatory and operational functions. By focusing on regulation and potential privatization, Pagcor aims to strengthen its oversight and create a more transparent and fair environment for the Philippine casino industry. Legislative action to establish a dedicated casino regulatory authority will play a crucial role in ensuring the effective regulation of the sector.