House Committee Chair Proposes Privatization of PAGCOR Casinos, Establishment of New Regulatory Body

MANILA — The chairperson of the House Committee on Government Reorganization has put forward a significant proposal to dismantle the Philippine Amusement and Gaming Corp. (PAGCOR) and privatize its casinos, which are currently operated by the state. This initiative, announced on Saturday, also aims to establish a new regulatory entity, the Philippine Amusement and Gaming Commission (PAGCOM).

According to Philippines News Agency, the new bill seeks to resolve the conflicting roles of PAGCOR as both a regulator and operator of gaming facilities in the country. The proposed change involves shifting all regulatory responsibilities to the newly formed PAGCOM, while privatizing existing PAGCOR-operated casinos and gaming activities, including online platforms.

Flores, who has adopted House Bill 3559 originally authored by former Batangas lawmaker and current Finance Secretary Ralph Recto, emphasized the need for this transformation to enhance efficiency and reduce potential conflicts of interest within the gaming sector. The bill outlines that, in addition to casino privatization, it will target the elimination of all Philippine Offshore Gaming Operations (POGOs) licensed by PAGCOR and crack down on illegal gambling operations.

Further reforms proposed by Flores include the removal of online gaming from mobile phones and cyberspace, which he cites as avenues for cybercrime, scams, identity theft, and online theft. Under the proposed legislation, the new regulatory commission, PAGCOM, would impose a 5 percent gross revenue tax on casino operators and collect an additional 25 percent from their aggregate gross earnings. These funds would be directed towards local government projects, addiction rehabilitation centers, and other priority social service programs.

The proposed legislative changes are set to be deliberated jointly by the Government Reorganization and Games and Amusement committees, with further amendments expected to refine and enhance the regulatory framework for gaming in the Philippines.