Gatchalian: Privatization of casinos to cushion revenue loss from POGO shutdown

Senator Win Gatchalian said proceeds from the Philippine Amusement and Gaming Corp.'s (PAGCOR) plan to privatize a significant number of its casinos could compensate for any revenue loss that the government will incur from terminating the operations of Philippine Offshore Gaming Operators (POGO) in the country.

PAGCOR recently disclosed a plan to commence by 2025 the privatization of 45 of its casinos which is expected to generate for the government P60 billion to P80 billion in revenue proceeds.

"The plan to privatize PAGCOR casinos could potentially augment government revenues, eliminating the need to impose any additional taxes amid prevailing tight fiscal space," said Gatchalian, who chairs the Senate Committee on Ways and Means.

At the same time, the privatization of PAGCOR's casino operations would also formally decouple its regulatory function from its commercial operations. In previous hearings, Gatchalian has batted for the decoupling of PAGCOR's regulatory functions from its commercial operations. He emphasized that such move would enable PAGCOR to perform its regulatory functions effectively without any conflict of interest.

The senator pointed out that since PAGCOR profits from POGO operations, it is to their advantage if these POGOs are earning more, which consequently reduces their motivation to conduct thorough oversight on POGO companies.

"Unless PAGCOR relinquishes its commercial operations, it is still in competition with other casino operators in the country," he said.

PAGCOR has not been able to effectively supervise the industry's operations, said Gatchalian, citing news reports that it failed to collect P2.3 billion worth of income from POGOs since December 2021, according to the Commission on Audit (COA).

In addition, PAGCOR has also failed to uphold its own rules for POGOs. For instance, the accounts receivable of PAGCOR from POGOs ballooned because of their own failure to implement the Offshore Gaming Regulatory Manual (OGRM) that governs the conduct of offshore gaming operations by the POGO licensees and service providers.

Gatchalian: Pagsasapribado ng mga casino pupunan ang mawawalang kita sa pagpapasara sa mga POGO

Sinabi ni Senator Win Gatchalian na ang malilikom mula sa plano ng Philippine Amusement and Gaming Corp. (PAGCOR) na isapribado ang malaking bilang ng mga casino nito ay maaaring punan ang anumang mawawalang kita sakaling ipasara na ang operasyon ng Philippine Offshore Gaming Operators (POGO) sa bansa.

Inanunsyo kamakailan ng PAGCOR ang planong pagsasapribado ng 45 sa mga casino na hawak nito simulan sa 2025 na inaasahang magbibigay sa gobyerno ng karagdagang P60 bilyon hanggang P80 bilyong kita.

"Ang planong pagsasapribado ng mga casino ng PAGCOR ay magpapataas sa kita ng gobyerno nang hindi na kinakailangang magdagdag pa ng ipapataw na buwis, habang nasa gitna ng paghihigpit ng sinturon ng pamahalaan," sabi ni Gatchalian, na chairperson ng Senate Committee on Ways and Means.

Bukod dyan, ang pagsasapribado ng pagpapatakbo ng mga casino ng PAGCOR ay may layon rin na ihiwalay ang regulatory function ng ahensiya sa commercial operation nito. Sa mga nakaraang pagdinig, sinabi ni Gatchalian na ito ang nais niyang mangyari. Binigyang-diin niya na ang naturang hakbang ay magbibigay daan upang magampanan nang epektibo ng PAGCOR ang tungkulin nito bilang isang regulatory body nang walang conflict of interest.

Duda si Gatchalian na dahil kumikita ang PAGCOR sa mga POGO ay maaaring nababawasan ang kanilang motibasyon na magsagawa ng masusing pagbabantay sa operasyon ng mga ito.

"Hangga't hindi binibitawan ng PAGCOR ang kanilang commercial operation, nananatiling kumpetisyon pa rin ito ng ibang mga operator ng casino sa bansa," aniya.

Kaugnay ng balitang bigong makakolekta ang PAGCOR ng P2.3 bilyong halaga ng kita mula sa mga POGO mula noong Disyembre 2021, lumalabas na hindi ito epektibo sa pagsasagawa ng tungkulin.

Pati sariling patakaran ng PAGCOR ay hindi nito ipinapatupad, ani Gatchalian. Halimbawa, lomobo ang accounts receivable na natatanggap ng PAGCOR mula sa mga POGO dahil sa sarili nitong kabiguan na ipatupad ang Offshore Gaming Regulatory Manual (OGRM) na siyang nangangasiwa ng offshore gaming operation ng mga licensee at service providers ng POGO.