Privatizing Pagcor

There is something very anomalous about PAGCOR that no administration has cared to fix. It is both a regulator and a participant in the business it regulates.

- BOO CHANCO

Not even PNoy, with his emphasis on good governance, managed to correct this glaring irregularity. Politicians and influential cronies of post-EDSA presidents have benefited greatly – and still do – from the arrangement, weakening any political will to make things right.

Then again, we seem comfortable with a situation like this. Apparently, our bureaucracy and our dynastic politicians are oblivious to conflicts of interest.

Surprisingly, the BBM administration is determined to privatize PAGCOR, according to its chairman, businessman Al Tengco. He said BBM recognized the transparency and governance issues with PAGCOR as both the regulator and operator of casinos. The sale of PAGCOR's casinos is expected to generate no less than P80 billion. Thereafter, PAGCOR will collect licensing and other fees.

Privatizing PAGCOR involves selling all 43 casinos it manages to the private sector. After that happens, PAGCOR will become a purely regulatory body with no conflict of interest. This will also enable PAGCOR to focus more on the proper regulation of the gaming industry, helping to ensure criminal elements are weeded out.

Casino Filipino was and still is not a significant contributor to PAGCOR's revenues that would prevent privatization. From January to September, PAGCOR recorded a total of P299.83 billion in GGR (gross gaming revenues) for the Philippine gaming industry (including offshore gaming). PAGCOR-operated casinos generated P12.53 billion or just 4.18 percent of industry GGR.