The Philippine Amusement and Gaming Corp. (PAGCOR), which currently serves as both gambling regulator and operator, has contested a legislative proposal that would strip it of its authority to grant gaming licenses to interested gambling businesses.

Under House Bill 6514, co-authored by House Speaker Pantaleon Alvarez and House Deputy Majority Leader Juan Pablo Bondoc, gambling companies will have to obtain a franchise from the Congress, known to be the Philippines’ main bicameral legislative body.

According to PAGCOR, operators obtaining a franchise from the Philippine Congress is not required under the nation’s Constitution, and that such franchises should only be obtained for the provision of public utility services.

Mr. Bondoc said during a Monday hearing that PAGCOR should not forget that its current powers to issue licenses are actually the result from the fact that it had been granted a franchise from the Congress. The legislator’s comments came after he read PAGCOR’s position paper on the matter.

The House Deputy Majority Leader went on to say the Congress could retake the gambling regulator’s powers to grant licenses if and when it finds necessary. According to Mr. Bondoc, the process of issuing licenses to gambling operators should be transparent and public and that the Congress can ensure that transparency.

He also pointed out that licenses are currently being issued privately, which makes the process vulnerable to “regulatory capture”.

If the legislative piece gains the necessary support in the Congress, it will make PAGCOR a purely regulatory body. As Casino News Daily reported on Monday, the agency’s powers to issue licenses to interested operators will be assumed by the Congress, and it will also be stripped of its functions of a gambling operator.

PAGCOR will thus have to monitor the industry and to ensure that all licensees comply with existing regulations, including the socially responsible provision of gambling services. The agency will also have to prevent unlicensed entities from operating in the Philippines and drawing players into an unregulated gambling environment.

Under the proposed bill, PAGCOR will become the Philippine Amusement and Gaming Authority and will assume the responsibilities of several more gambling-oriented agencies, including the Gaming and Amusement Board and the Philippine Charity Sweepstakes Office. Some of the other government entities will be abolished if the proposals in the legislative piece receive the necessary approval.

The future of the bill is yet to be determined. Discussions on its provisions commenced on Monday, November 27. The legislative piece is first set to be considered in the House Game and Amusement Committee before moving any forward. Here it is also important to note that HB 6514 comes as part of a planned overhaul of PAGCOR’s responsibilities. The agency is also set to have its regulatory powers and its functions as an operator split. The gambling properties currently controlled by PAGCOR are planned to be privatized under separate legislative proposals.

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