# House Committee on Appropriations: PAGCOR - August 24, 2026 — Source-Linked Digest

Source: https://www.youtube.com/watch?v=yfmi3MQqy7E

AI-assisted working draft. AI can make errors. Always verify consequential interpretations and wording against the cited transcript and official video.

## At a glance

- **Opening presentation:** PAGCOR opened with its 2025 income and nation-building contributions, lower 2026 income estimate, and 2027 outlook. It also presented statutory remittances and universal-health funding, plus school buildings, patient-transport vehicles, disaster aid, and hospital equipment.

- **Main fault lines:** Members chiefly questioned PAGCOR Chairman and CEO Alejandro H. Tengco about weaker gaming income, online-gambling growth and safeguards, illegal-platform enforcement, Casino Filipino privatization, employee and universal-health obligations, and the reach of PAGCOR-funded civic projects.

- **Recurring answers:** PAGCOR often separated confirmed collections and existing controls from projections, proposed legislation, GCG or inter-agency work, and requests still subject to site checks, documentation, liquidation, or available funding.

- **Commitments and open matters:** Officials committed to continue coordination and provide or verify several records, while detailed revenue breakdowns, some project outcomes, privatization effects, enforcement results, and proposed safeguards remained pending or conditional when the briefing ended.

Reading note: AI-assisted working draft grounded in the reviewed PAGCOR transcript at revision 41, archived official media and captions, immutable ASR, diarization, the audited 18-block interpellation inventory, and independent round drafting, editing, and adversarial validation. Reader links mark the start of each question and answer; complete supporting stable IDs remain in provenance metadata.

## PAGCOR presentation

### Income performance, gaming decline, and the 2027 outlook

PAGCOR presented PHP 106.03 billion in total income for 2025, an estimated PHP 86.95 billion for 2026, and projected 2027 income of PHP 88.33 billion with PHP 5.45 billion in net income. It reported PHP 95.14 billion in 2025 gaming-operations income, down PHP 2.38 billion from 2024, and attributed the decline to the POGO closure, weaker PAGCOR-casino and licensee revenue, and the delinking of e-wallets from online gaming platforms. The 2026 and 2027 amounts were estimates and projections, not reported final results.

[00:36:21 · asr-000120](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000120)

### Taxes, government shares, dividends, and universal-health funding

The presentation described PAGCOR's statutory distribution structure, including the five-percent franchise tax, the National Government share, host-city and socio-civic allocations, and mandated contributions. It reported PHP 66.95 billion in 2025 nation-building contributions, PHP 8.31 billion in BIR tax remittances, PHP 5.67 billion in declared dividends, and about PHP 22.56 billion as the 2025 allocation associated with universal health care. For the first half of 2026, it reported PHP 43.32 billion in total income and PHP 30.16 billion for nation-building programs.

[00:37:56 · asr-000131](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000131)

### School buildings, medical transport, disaster aid, and hospital equipment

PAGCOR presented a PHP 7.5-billion corporate school-building commitment for 2026-27 covering 125 three-storey, 12-classroom buildings—about 1,500 classrooms over two years—with DepEd recommendations and recipient-LGU completion capacity guiding site selection. It also reported close to 250 donated patient-transport vehicles, PHP 300 million spent on food and non-food disaster packs in 2025 and the first half of 2026, and PHP 360 million in PAGCOR medical equipment for the Jose B. Lingad Children's Medical Center, alongside PHP 1 billion from Bloomberry Cultural Foundation for construction and development.

[00:42:54 · asr-000185](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000185)

## Budget proposal and requests

### PAGCOR 2027 revenue targets and funding proposals

PAGCOR projected PHP 88.33 billion in total income and PHP 5.45 billion in net income for 2027, compared with estimated 2026 total income of PHP 86.95 billion. These are corporate income forecasts.

[00:37:30 · asr-000127](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000127) · [00:37:50 · asr-000129](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000129)

### Helpline funding and local project requests

Rep. Presley C. De Jesus urged committee scrutiny of PAGCOR remittances to the Philippine Sports Commission (PSC) and later argued that funds he saw as taken from PAGCOR for PSC should be returned to PAGCOR. He proposed no amount or formal motion. Presiding Rep. Mikaela Angela B. Suansing said the committee would examine the PSC's 2027 NEP level against its 2026 GAA level, PAGCOR remittances, utilization and planned programs; no return or reallocation was ruled on. This concerned statutory remittances and PSC appropriations, not a stated PAGCOR NEP request. Rep. Sarah Jane I. Elago asked whether regular government funding had been proposed for the problem-gambling helpline. PAGCOR Chairman and CEO Alejandro H. Tengco knew of no national allocation and pledged continued PAGCOR and licensee-foundation support. Rep. Antonino B. Roman III followed up on a Bataan school-building request within PAGCOR's corporate school-building program running through 2027; Tengco said PAGCOR could fund 125 buildings overall, would verify the district's request, and might support at most one building there. Rep. Mark O. Cojuangco sought help with a hospital project he described as about PHP 1 billion; Tengco suggested possible equipment support for a completed building after a written request. No formal budget increase or restoration motion or approved additional allocation was recorded.

[01:05:09 · asr-000400](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000400) · [01:05:33 · asr-000409](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000409) · [03:04:50 · asr-002858](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002858) · [01:52:49 · asr-001003](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001003) · [01:53:27 · asr-001012](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001012) · [04:24:27 · asr-003846](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003846) · [04:24:37 · asr-003855](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003855) · [04:37:10 · asr-004171](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004171) · [04:37:39 · asr-004176](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004176)

## Rep. Mikaela Angela B. Suansing

### Lower gaming income and PAGCOR's recovery outlook

Suansing asked why the stated 2026 total-income projection of about PHP 86.95 billion was 18 percent below the PHP 106-billion 2025 actual income. PAGCOR Chairman Alejandro Tengco attributed the decline to the delinking of e-wallet payment applications from online gaming, which he said was followed by about a 40-percent fall in gaming activity, and to the Middle East crisis affecting land-based and online markets. He reported a roughly 10-percent July increase that remained at that level in August and a recent integrated-resort tourism uptick, but made recovery conditional on improving economic conditions and the fourth-quarter peak season.

[00:48:01 · asr-000236](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000236) · [00:48:48 · asr-000241](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000241)

### Nation-building contributions, PSC payments, and socio-civic spending

Suansing noted that, despite a roughly PHP 20-billion income reduction, PAGCOR's contributions to nation building would fall only PHP 5.5 billion, or 8.3 percent, from the PHP 66.9-billion 2025 level; she also cited socio-civic project figures of PHP 12.4 billion for 2024, PHP 12.8 billion for 2025, and PHP 13.99 billion for ongoing 2026. Tengco said a final Supreme Court ruling required PAGCOR to remit five percent of gross income to the Philippine Sports Commission rather than five percent of gaming revenue, with an obligation reaching back to 1993. He said the ordinary monthly PSC remittance had risen from about PHP 190 million to more than PHP 300 million; PAGCOR was discussing a PHP 37-billion retroactive liability, which the Court allowed it ten years to settle, and would comply. PAGCOR gave no separate response to the socio-civic-spending observation before the De Jesus intervention.

[00:53:27 · asr-000276](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000276) · [00:54:29 · asr-000283](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000283)

### Committee scrutiny of PSC receipts and PAGCOR remittance records

Suansing said the Committee on Appropriations would examine whether the enlarged PSC remittances were being used for athletes. After De Jesus's related intervention, she noted that the 2027 NEP level for PSC was below its 2026 GAA level but had not fallen in proportion to PAGCOR's higher remittances; she said the committee would assess the final level against utilization and the PSC's planned 2027 programs. She then requested PAGCOR's 2025 remittance record and its 2026 year-to-date record for PSC budget deliberations. PAGCOR made no express on-record commitment to furnish those records before she closed her questions.

[01:01:30 · asr-000354](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000354) · [01:07:20 · asr-000432](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000432)

### Hernandez manifestation and the motion ending the PAGCOR briefing

Senior Deputy Speaker Ferdinand L. Hernandez made a brief non-question manifestation, saying he had no question for PAGCOR Chairman Alejandro Tengco, jokingly referring to the lawyer he addressed as Attorney Aguinaldo, whose full identity was not established in that exchange, and asking that the second district of South Cotabato not be forgotten. It was not an interpellation round. Suansing then said the list of interpellators appeared complete, called for a motion, received a motion to terminate the PAGCOR budget briefing and a second, and ruled the motion carried. The current record does not identify either the mover or seconder, so neither is named here.

[04:48:17 · asr-004209](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004209) · [04:48:48 · asr-004213](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004213) · [04:49:09 · asr-004217](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004217)

### PAGCOR close, data coordination, and the PCSO schedule

Suansing noted that the PAGCOR briefing had taken five hours, compared with nine hours the previous year, thanked Tengco, PAGCOR officials, and the members, and said pending data requests would be coordinated with PAGCOR. She suspended proceedings in the hall and set the Philippine Charity Sweepstakes Office budget briefing to resume there at 3:00 p.m. She clarified that the suspension applied only to that hall because Department of Justice and Department of Trade and Industry budget hearings were continuing concurrently in other rooms.

[04:49:15 · asr-004219](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004219) · [04:50:06 · asr-004228](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004228) · [04:50:18 · asr-004231](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004231)

## Rep. Presley C. De Jesus

### Whether PSC receipts could become excessive

De Jesus questioned whether retroactive PSC payments would effectively add to PAGCOR's ordinary contributions and create an excessive pool, urging committee scrutiny. Tengco said the current five-percent gross-income remittance was nearing PHP 400 million a month and that a roughly PHP 300-million monthly retroactive component could bring the total close to PHP 700 million if implemented. After De Jesus pressed the concern, Tengco clarified that PAGCOR had not yet begun paying the PHP 37-billion retroactive amount; PAGCOR and PSC were still discussing payment and he said they were close to an agreement. Suansing said the eventual PSC budget level would be assessed against utilization and planned 2027 programs.

[01:02:45 · asr-000369](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000369) · [01:03:26 · asr-000380](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000380) · [01:06:28 · asr-000422](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000422)

### Integrated-resort categories and prospective Casino Filipino buyers

De Jesus asked what PAGCOR meant by an integrated resort. Tengco described the platinum category as requiring at least US$1 billion in investment and thousands of Filipino workers, and described lower-investment categories. On the prospective buyers of remaining Casino Filipino properties, Tengco agreed they would instead be community-casino-level properties. He said lower-investment categories faced higher regulatory fees while the largest investments received lower fees because of tourism and employment effects. No buyer or final classification of a future transaction was identified.

[02:47:36 · asr-002167](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002167) · [02:47:52 · asr-002175](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002175) · [02:50:41 · asr-002287](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002287)

### Community casinos, privatization economics, and separating PAGCOR's roles

De Jesus asked whether online gaming's lead over land-based casinos would diminish Casino Filipino's value before privatization. Tengco said community casinos retained a local market and private operation could improve efficiency. He contrasted PAGCOR's costs with a private-operator licence-fee and franchise-tax model, citing payroll above P1 billion and rent of about P250 million a month as costs he expected could leave PAGCOR expenses. These were expectations, not a sale valuation or completed saving. On separation of regulator and operator roles, Tengco cited a GCG-law provision for conflicting regulatory and commercial roles and said it would support a GCG recommendation to the Office of the President; no sale, legal change, or completed separation followed.

[02:52:04 · asr-002355](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002355) · [02:53:02 · asr-002408](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002408) · [02:56:05 · asr-002562](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002562)

### Advertising penalties and discipline for Gaming Service Administrators

De Jesus questioned whether advertising penalties could deter violations whose commercial benefit exceeded a P1-million fine. Tengco said P1 million was the first-offence penalty, a second violation brought suspension, and a third could cancel the licence; he said PAGCOR had raised the first-offence fine from P50,000 and acted on noncompliant billboards. On Gaming Service Administrators, Tengco said their number had fallen from a peak of 74 to 48, described a P9-million monthly minimum guarantee from July 1 plus a 5% BIR charge of about P1.5 million, and said operators were surrendering rather than selling licences when inactive or loss-making. He did not give an absolute assurance that all dormant licences were gone.

[02:56:56 · asr-002614](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002614) · [02:57:28 · asr-002648](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002648) · [02:59:35 · asr-002771](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002771)

### PAGCOR's games-of-chance remit

De Jesus asked which activities were within PAGCOR's mandate to regulate, operate, authorize, and license. Tengco said the current remit was casino games and online gaming; he distinguished horse racing and cockfighting as under the Games and Amusements Board and said online sabong had ceased. De Jesus restated the land-based-casino and online-gaming categories, and Tengco agreed.

[03:03:05 · asr-002827](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002827) · [03:03:26 · asr-002833](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002833)

### Closing position on Philippine Sports Commission remittances

De Jesus reiterated his earlier position that the budget taken from PAGCOR for the Philippine Sports Commission should be returned to PAGCOR because, in his view, PAGCOR assisted many people. PAGCOR made no substantive reply before presiding Rep. Mikaela Angela B. Suansing moved to the next interpellator.

[03:04:48 · asr-002857](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002857)

## Rep. Elijah Rumbaoa San Fernando

### Gaming dependence and the scale of online play

San Fernando asked how much of PAGCOR's income was gaming-derived after referring to PHP 95 billion in gaming revenue. Chairman Alejandro Tengco said gaming made up roughly 95–96 percent of PAGCOR's total income. On the separate follow-up about online customers, Tengco reported about 30 million registered customers and about 10 million active players; those are participation figures, not a revenue breakdown.

[01:08:48 · asr-000454](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000454) · [01:09:00 · asr-000457](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000457) · [01:09:16 · asr-000460](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000460)

### CDE-market exposure raised by San Fernando

San Fernando asked whether a large share of online customers came from the CDE market, and Tengco said a large percentage did. San Fernando then framed that market as including workers, minimum-wage earners, and low-income earners, and asked whether that was correct. A brief affirmative reply followed, but the current transcript labels that short turn as San Fernando; the exchange therefore records his concern and the affirmative response without treating it as a demographic definition or a quantified breakdown by PAGCOR.

[01:09:48 · asr-000466](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000466) · [01:09:55 · asr-000467](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000467) · [01:10:19 · asr-000474](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000474)

### Advertising screening under the ASC arrangement

San Fernando asked what PAGCOR's July 2025 arrangement with the Ad Standards Council (ASC) placed in the gambling must-screen category and later raised ASC Circular 2025-010. Tengco said online operators and land-based casinos could not advertise openly, advertisements had to pass through ASC review, billboards were removed after a 60-day allowance, advertising from 5 to 8 p.m. was prohibited, and advertisements carried responsible-gaming reminders. He said an ASC identifier on current advertisements showed that the content had passed ASC review. On the separate sequencing question, Tengco described applications for PAGCOR approval and ASC review as occurring at roughly the same time; he did not describe a completed PAGCOR clearance as a prerequisite that must precede ASC review.

[01:10:22 · asr-000476](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000476) · [01:10:42 · asr-000481](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000481) · [01:15:06 · asr-000552](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000552)

### Influencer promotions and limits on PAGCOR enforcement

San Fernando raised promotions by content creators and influencers that, in his view, lacked PAGCOR or ASC compliance and responsible-gaming warnings, and asked how PAGCOR exercised regulatory power. Tengco said the named online-gaming company had not sought permission; PAGCOR fined it PHP 1 million, ordered the promotion stopped, and warned that another violation could lead to suspension or cancellation of its license. He estimated that roughly half of operating sites were PAGCOR-licensed and roughly half illegal, with illegal operators often based abroad. On a separate question about endorsers of non-PAGCOR sites, Tengco said PAGCOR coordinated with DICT, NTC, and CICC; CICC had called and warned endorsers, cases involving about 15 leading endorsers were ongoing, and some endorsers had withdrawn or moved to legal operators. He emphasized that PAGCOR has no police power and can only recommend action to those agencies; no new direct-liability rule for creators was committed in this exchange.

[01:15:42 · asr-000554](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000554) · [01:17:09 · asr-000562](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000562) · [01:21:36 · asr-000612](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000612)

### Responsible-gaming support and the unanswered budget share

San Fernando asked what percentage of PAGCOR's corporate operating budget addressed social harm. Tengco did not give a percentage. Instead, he said responsible-gaming support was financed through casino and licensee foundations rather than PAGCOR's own budget, and described a 24/7 hotline with the Seagulls Flock Foundation, six customer agents per 12-hour shift, roughly 100 people assisted with advice in the preceding two months, and some referrals to rehabilitation centers. He also reported 15,000 self-exclusion approvals in the preceding year, including family-exclusion requests, to be enforced by land-based casinos and online licensees. San Fernando closed by restating his concern about gambling's impact on workers and ordinary Filipinos; no additional budget figure or enforcement commitment followed.

[01:23:45 · asr-000646](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000646) · [01:23:57 · asr-000653](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000653)

## Rep. Jose "Bong" J. Teves Jr.

### Income mix, POGO loss, and replacement strategy

Teves sought a usable PAGCOR income breakdown, including online gaming. Tengco said PAGCOR would furnish one and described estimated gaming-operations income as below P80 billion, roughly split between online gaming and land-based casino licences at about P40 billion each, with online gaming slightly ahead. Teves referred to P111 billion for 2024 and P165 billion for 2025; Tengco corrected the latter to P166 billion and said the POGO prohibition in 2025 had meant a projected P10-billion loss. The exchange did not reconcile those figures into comparable periods or categories. Asked for a legal replacement, Tengco said PAGCOR was expanding licensed online gaming and encouraging illegal operators to seek licences, while acknowledging that technology made online gaming difficult to eliminate. He also pointed to Special Class BPO back-office operations for overseas casino businesses, citing MGM's approximately 2,000 Filipino workers and P35,000–P50,000 pay range. He projected associated fees could add P2.5–3 billion in 2026 to help offset weaker operations; that was an expectation, not a completed result.

[01:31:14 · asr-000723](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000723) · [01:32:20 · asr-000738](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000738) · [01:34:06 · asr-000771](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000771)

### Youth gambling prevention and PAGCOR-funded projects

Teves raised concern about young people and others becoming involved in online gambling. He argued that PAGCOR-branded school buildings could create the wrong association for students, proposed shifting emphasis to evacuation centres in typhoon-prone areas, and suggested a school information campaign against gambling. Tengco said evacuation-centre construction remained a PAGCOR program, but its classroom construction followed a Department of Education memorandum of agreement and the Administration's effort to address the classroom backlog. He committed only to consider how to balance Teves's suggestions with existing programs; he did not announce a funded prevention campaign or a decision to replace school buildings with evacuation centres.

[01:37:59 · asr-000800](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000800) · [01:41:01 · asr-000854](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000854)

### Casino Filipino decoupling and worker protections

Teves asked about the status of Casino Filipino privatization, including revenue effects and possible job losses. Tengco said PAGCOR had submitted the requested data to the Governance Commission for GOCCs (GCG) and was waiting for its recommendation to the Office of the President on privatization or decoupling. He said Casino Filipino branches had carried substantial losses and PAGCOR saw transfer to the private sector as necessary. For affected employees, he said retirement would be paid and, because it would be involuntary, an additional special-incentive and retirement package would be provided beyond regular retirement. The exchange supplied no employee count, benefit amounts, payment timing, quantified revenue effect, or final decision. Tengco's reference to an expected GCG recommendation was tentative and did not establish a reliable schedule.

[01:41:58 · asr-000866](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000866) · [01:42:19 · asr-000869](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000869)

## Rep. Sarah Jane I. Elago

### School-building programme: scale, delivery roles, and requested disclosure

Elago asked whether the PHP 1.37-billion initial school-building funding covered only the current year or the next year as well. Tengco said PAGCOR's memorandum of agreement with the Department of Education covered 125 three-storey, 12-classroom buildings—about 1,500 classrooms—with equipment and furniture, for roughly PHP 7.5 billion from 2026 through the end of 2027. He said DepEd would vet and recommend sites, PAGCOR would fund construction through LGUs, and close to PHP 3.5 billion had been earmarked for the year’s 50-percent down payments, followed by progressive billing tied to each building’s completion. Elago requested a utilization breakdown. Tengco said PAGCOR funds and collates requirements while the LGUs conduct bidding after the first release; no itemized utilization breakdown was supplied in the round.

[01:45:14 · asr-000900](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000900) · [01:45:45 · asr-000906](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000906) · [01:48:21 · asr-000941](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000941)

### Advertising-rule proceeds and influencer enforcement

Elago asked what PAGCOR had collected since its tighter gambling-advertising rules began and how the money was used, then requested the cases and outcomes involving endorsers or influencers. Tengco said collections since 2026 had exceeded PHP 100 million and were entered as other income within PAGCOR’s corporate income. He clarified that the Cybercrime Investigation and Coordinating Center (CICC), rather than PAGCOR, files cases against influencers after PAGCOR reports them; he estimated that CICC had filed about 12 to 15 cases and undertook to obtain its list for the Committee on Appropriations. The exchange did not establish a completed suspension, licence cancellation, or case disposition.

[01:49:21 · asr-000959](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000959) · [01:49:47 · asr-000969](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000969) · [01:50:35 · asr-000980](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000980)

### Foreign illegal gambling platforms and inter-agency action

Elago then asked what stronger action was being taken against foreign gambling companies operating illegally, rather than only against local endorsers and influencers. Tengco said PAGCOR had no police powers and depended on the Department of Information and Communications Technology (DICT), CICC, and the National Telecommunications Commission. He said the agencies had coordinated with social-media platforms and that the DICT Secretary had written to their heads to state that the activity was unauthorized in the Philippines. Elago said she would follow the matter with DICT and CICC. The exchange did not report a platform-removal result or a PAGCOR enforcement power beyond referral and coordination.

[01:51:35 · asr-000993](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000993) · [01:51:52 · asr-000995](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-000995)

### Helpline continuity and responsible-gaming funding

Elago asked whether government had proposed a regular, sustained budget for the 24/7 National Problem Gambling Helpline and its counselling, prevention, and awareness work. Tengco said he was not aware of a national-government budget, but committed that PAGCOR would keep the programme running during his administration and said PAGCOR, with foundations associated with licensed operators, could finance it. He said online-gaming platforms are required to set aside one percent of gross gaming revenue for charitable and responsible-gaming projects. When Elago asked how much covered the helpline, counselling, prevention, and awareness work, Tengco put PAGCOR’s responsible-gaming budget at roughly PHP 100 million a year and said operator foundations could provide additional support. Elago requested the PHP 100-million breakdown; it was not supplied in the round.

[01:52:49 · asr-001003](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001003) · [01:53:27 · asr-001012](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001012) · [01:55:57 · asr-001047](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001047)

### Treatment referrals and the requested strengthened-helpline report

Elago asked whether responsible-gaming funding included treatment and additional support for people with gambling addiction. She cited her concern about active users among low-income and minimum-wage workers and called for a comprehensive, multi-agency prevention approach. Tengco said PAGCOR’s 24/7 hotline partner, Seagulls Flock Foundation, is a nonprofit that trains customer-service agents, has rehabilitation experience, works with gambling-rehabilitation centres around the Philippines, and recommends referral destinations. Elago then asked for the latest report on the strengthened helpline. No report was given before the round ended; Suansing said the Committee would consolidate PAGCOR documentary requests and follow up.

[01:58:07 · asr-001088](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001088) · [01:59:25 · asr-001125](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001125) · [02:00:40 · asr-001149](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001149)

## Rep. Salvador A. Pleyto

### Online-gaming revenue recovery and collection

Pleyto cited a reported 26.64% first-half-2026 revenue decline and an 85.29% fall in net income, then asked what PAGCOR would do to reverse the trend, particularly in electronic and online gaming. Chairman Alejandro H. Tengco confirmed the figures and said PAGCOR was encouraging illegal operators to become licensed, estimating the market as roughly half licensed and half unlicensed. He said a third-party auditor monitored operators' gross gaming revenue and that reported revenue had risen as operators saw that monitoring. He also said PAGCOR was encouraging overseas operators to establish Special Class BPO backroom operations in Manila, reporting about 7,500 employees paid BPO customer-service rates of P35,000–P45,000 a month. Tengco's prospect of stronger patronage remained tied in part to the end of the Middle East crisis; it was not a completed recovery result.

[02:01:25 · asr-001157](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001157) · [02:01:48 · asr-001162](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001162)

### Regulatory updating, investment promotion, and planned privatization

Pleyto asked how PAGCOR would improve regulation, expand legitimate gaming, strengthen monitoring and collection, address illegal operators, and attract responsible investment. Tengco said PAGCOR regularly reviewed its structures and guidelines, with almost monthly adjustments to online-gaming rules, and promoted Philippine licensing at overseas conventions and exhibits. He said the planned Casino Filipino privatization and decoupling could be a game changer because PAGCOR could not compete head-to-head with licensees while its casinos lacked hotels, restaurants, malls, and comparable facilities. If a private operator strengthened the properties, he expected PAGCOR's licence-fee income to rise. Tengco also described more than P1 billion in monthly employee pay and more than P250 million in monthly property rent as corporate costs he said could be removed from PAGCOR expenses and used to support nation building. These were anticipated effects, not a completed privatization decision.

[02:05:57 · asr-001203](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001203) · [02:06:20 · asr-001207](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001207)

### Social-responsibility position and disaster-assistance outlook

Pleyto asked to yield his remaining time to Rep. Mauricio G. Domogan, then placed on record his view that PAGCOR had continued to meet its social responsibility despite the revenue and net-income decline. He thanked PAGCOR for the recently inaugurated J.B.L. Children's Medical Center in Clark, which he described as bringing specialized care closer to Central Luzon families. He also said PAGCOR had assisted or stood ready to assist communities affected by Mindanao earthquakes, typhoons, and the southwest monsoon, while disasters strained government resources. Those were Pleyto's statements, not independently confirmed operational reports in Tengco's response. Tengco thanked him and said PAGCOR would continue working with communities, but announced no new assistance amount or specific disaster program.

[02:10:23 · asr-001250](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001250) · [02:12:55 · asr-001287](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001287)

## Rep. Iris Marie Demesa Montes

### UHC remittances, reporting, and the requested record

Montes asked whether PAGCOR had complied with the Universal Health Care Act's remittance provision, saying the statute directed part of the national-government share of PAGCOR income to PhilHealth and contemplated remittances from 2020. Chairman Alejandro H. Tengco said PAGCOR had remitted its shares to the National Government from implementation of the law and was current, but said PAGCOR did not remit directly to PhilHealth. When Montes requested cumulative National Treasury remittances, Tengco had no total available at the hearing but said PAGCOR remitted monthly and would submit the record. Montes requested it promptly for DBM and DOF plenary deliberations, and Chair Suansing set a maximum of 48 hours. The record was not supplied in this round.

[02:13:25 · asr-001296](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001296) · [02:14:22 · asr-001301](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001301) · [02:16:22 · asr-001350](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001350)

### Casino Filipino privatization, PhilHealth income, and sale proceeds

Montes asked about PAGCOR's planned regulatory-only role, the number of Casino Filipino properties, and a reported P30–50-billion sale value. Tengco said PAGCOR awaited a GCG recommendation to the Office of the President; if approved, a high-30s number of properties would be privatized. He estimated P20–30 billion, not P30–50 billion, because weaker revenue had lowered valuations, and said PAGCOR would seek the best possible price. On Montes's concern for PhilHealth income, he gave a medium-term expectation that lower payroll, rent, and utility costs would preserve or increase PAGCOR income and National Treasury remittances; it was not a completed valuation or revenue outcome. He added that retirement costs would take billions from sale proceeds and half of the remainder would be remitted to the Treasury. Montes asked whether PhilHealth would still receive its 50% share, and Tengco agreed.

[02:18:13 · asr-001403](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001403) · [02:18:51 · asr-001422](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001422) · [02:22:00 · asr-001515](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001515)

### Realigning infrastructure funding to classrooms

Montes asked whether PAGCOR's school buildings, e-learning centres, community wellness centres, and socio-civic or evacuation-centre projects remained part of its 2024 joint memorandum framework. Tengco said the Administration had asked PAGCOR to help build classrooms, so it realigned funding for wellness centres, evacuation centres, and e-libraries to construct 125 school buildings. He said PAGCOR's resources were then focused on reducing the classroom backlog and improving education. The answer records a current reallocation, not permanent termination of the earlier project types.

[02:22:43 · asr-001537](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001537) · [02:23:19 · asr-001554](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001554)

### Potential return to wellness, evacuation, and e-library projects

Montes asked whether, after the almost-P8-billion, 125-site, 1,500-classroom program, PAGCOR could again fund wellness and evacuation-centre projects. Tengco said that was very possible after the first batch unless PAGCOR was asked to add more school buildings. He said procurement had begun and he believed most classroom work would finish by the end of 2027, then described a possible 2028 rebalancing toward evacuation centres, e-libraries, and wellness centres. Montes supported that balance so other important projects would not be left out. The completion and rebalancing dates were expectations, not a binding allocation or decision.

[02:24:32 · asr-001591](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001591) · [02:25:06 · asr-001607](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001607)

## Rep. Jan "Atty. JP" Padiernos

### Casino Filipino privatization and employee safeguards

Padiernos asked how PAGCOR would weigh sale proceeds against protection for workers if Casino Filipino properties were privatized, raising possible displacement, employee absorption, and safeguards. Chairman Alejandro H. Tengco said privatization could not be abandoned because Casino Filipino was projected to lose more than P6 billion that year and had already accumulated P15 billion in losses during his chairmanship. He said at least 6,000 employees could be affected and would receive regular retirement plus a special-incentive payment for involuntary retirement. PAGCOR would ask buyers to absorb as many workers as they could, but did not state a binding absorption percentage. Vice President Angelito Domingo added that PAGCOR had completed 5,000 training initiatives, was cross-training workers for possible employment with integrated resorts or an acquiring entity, and was coordinating civil-service and vacancy pathways; it expected about 10,000 training initiatives by year-end. No final buyer, binding retention rule, or individual benefit amount was provided.

[02:27:26 · asr-001679](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001679) · [02:28:51 · asr-001688](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001688) · [02:33:28 · asr-001763](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001763)

### E-wallet restrictions, illegal payment channels, and the PAGCOR app

Padiernos asked how PAGCOR would balance BSP restrictions on direct e-wallet links with support for licensed e-games, while users moved to third-party payment channels and unauthorized aggregators that he said created fraud, data-theft, and money-laundering risks. Tengco said PAGCOR was in regular dialogue with the BSP and had reported illegal payment aggregators, payment apps, and even legal apps serving unlicensed operators. He said PAGCOR was preparing an app that would list licensed operators and give users a complaints-resolution path for problems such as deposits or winnings; he expected a possible fourth-quarter launch. PAGCOR also said it would continue working with DICT, NTC, and CICC on payment applications serving unlicensed operators. The exchange did not establish a new BSP rule or show that the app had launched.

[02:36:05 · asr-001841](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001841) · [02:37:14 · asr-001875](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001875)

### E-games recovery without expanding gambling access

Padiernos asked how PAGCOR would recover the legitimate e-games sector after a reported decline of more than 41% in the first half of 2026 without simply making gambling easier to access for minors and other vulnerable users. Tengco referred to Special Class BPO and other revenue-generating programs, estimating that the BPO program could provide P2–3 billion once normalized. He said PAGCOR was studying additional schemes and hoped to recover any decline by 2027. He said online-gaming revenue had increased in July because users were moving from illegal to legal licensees, not because PAGCOR was encouraging more people to gamble. These were explanations and expectations, not a new child-protection measure or a completed 2027 recovery.

[02:41:05 · asr-001990](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-001990) · [02:41:32 · asr-002003](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002003)

### KYC enforcement, mule accounts, and sanction outcomes

Padiernos asked how many e-games licensees had been fined, suspended, or otherwise sanctioned for failing to prevent proxy accounts, third-party funding, or minors' access through pre-verified and mule e-wallet accounts. Tengco said PAGCOR actively monitored KYC compliance and had imposed suspensions, not only fines, on legal operators that did not follow PAGCOR's structure. He maintained that mule accounts and third-party payment providers were usually used by illegal rather than legal operators, and said PAGCOR regularly reported illegal operators to NTC, DICT, and CICC. He did not provide a number of sanctions, examples of suspended licensees, or a specific minors-access outcome.

[02:43:01 · asr-002047](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002047) · [02:44:03 · asr-002077](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002077)

### Nation-building acknowledgement

Padiernos closed with a manifestation commending PAGCOR's report of more than P106 billion in revenue, P66.95 billion for nation building, and P22.56 billion for universal health care. He associated those figures with health care, public services, school buildings, patient transport vehicles, relief operations, and the Clark multi-specialty medical centre, and expressed support for PAGCOR's programs and needs. This was his position and acknowledgement; PAGCOR made no separate substantive response before presiding Rep. Mikaela Angela B. Suansing moved to the next interpellator.

[02:46:01 · asr-002126](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002126)

## Rep. Brian Poe

### Illegal sites, untracked wagers, and enforcement responsibility

Poe said 44 of the 52 illegal websites raised in the prior hearing had been taken down, but some were accessible again. He used about PHP 370 billion in 2026 gross gaming revenue and roughly PHP 3 trillion in annual wagers as working figures for reported gaming activity to ask what revenue was lost when illegal activity fell outside reported GGR. Tengco said the named sites remained unlicensed because PAGCOR had kept a two-year licensing moratorium. The exchange established that PAGCOR tracked only licensed operators' GGR; Tengco said PAGCOR could recommend action to DICT, CICC, and NTC, while those agencies held police powers. He repeated PAGCOR's estimate that roughly half the industry was licensed and half unlicensed. No new licence or definitive enforcement result for the resurgent sites was announced.

[03:05:52 · asr-002876](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002876) · [03:09:06 · asr-002914](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002914)

### Gambling-addiction support and requested program data

Poe asked whether PAGCOR funded or supported free mental-health services for gambling addicts, particularly working-class people unable to afford care. Tengco said this formed part of responsible gaming through the Seagulls Flock Foundation, which operated the 24/7 call centre, and said PAGCOR would submit a report on people assisted. Poe requested the programs, number of people helped, and funding data. The exchange did not state a separate mental-health appropriation or supply the requested figures during the round.

[03:12:40 · asr-002961](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002961) · [03:13:46 · asr-002975](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002975)

### Tools for illegal-site detection and cross-agency follow-up

Poe asked what funding or facilities for CICC and DICT could strengthen action against illegal online gambling and requested a list of needed equipment, cost, expected monitoring gains, and revenue implications. Tengco said DICT and CICC had identified tools and were procuring or about to procure equipment to track VPN users who hid their presence; he said that was what they would lobby Congress for. He stressed that PAGCOR was only recommendatory and said collaboration with DICT, CICC, and NTC had closed many sites, though they could rapidly reopen. Chair Suansing said Poe could raise the matter during the DICT budget hearing and the Committee would share his website screenshots with PAGCOR. No equipment list, cost projection, or procurement completion was supplied in the round.

[03:15:18 · asr-002993](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-002993) · [03:15:52 · asr-003000](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003000) · [03:18:50 · asr-003040](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003040)

## Rep. Roberto Nazal

### UHC remittances after Casino Filipino privatization

Nazal asked how planned Casino Filipino privatization would affect the UHC earmark and whether PAGCOR, DOF, DBM, and PhilHealth had quantified contributions before and after the change. Tengco said GCG was studying the decoupling recommendation and that PAGCOR internal projections expected operational efficiency to increase income in the medium term. He clarified that PAGCOR remits monthly to the National Treasury, while government is responsible for forwarding the statutory portion to the UHC fund; PAGCOR did not control or provide figures for what Treasury actually forwarded. Tengco cited roughly P50 billion remitted to Treasury in 2025, from which Nazal inferred P25 billion under the law, and committed to forward PAGCOR internal projections. The requested year-by-year UHC figures were not supplied in the round.

[03:21:34 · asr-003075](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003075) · [03:23:17 · asr-003094](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003094) · [03:25:37 · asr-003124](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003124)

### Privatization proceeds as a possible UHC cushion

Nazal proposed that any one-time privatization windfall serve as a UHC stabilization cushion during transition. Tengco said retirement and special-incentive obligations for affected employees were the first priority; he estimated retirement needs at P28–30 billion against an existing fund of about P12 billion. He described current sale proceeds at about P25–30 billion and said a difference after retirement costs could be considered as a cushion fund, but made no commitment. He also said the extraordinary income would normally be subject to PAGCOR's 50% remittance to the National Treasury. Chair Suansing recorded Tengco's commitment that documentary requirements would be provided within 48 hours; neither a cushion fund nor its legislative mechanism was adopted in the exchange.

[03:29:58 · asr-003166](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003166) · [03:30:50 · asr-003173](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003173) · [03:34:41 · asr-003223](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003223)

## Rep. Julienne "Jam" L. Baronda

### UHC support during the Supreme Court obligation

Baronda asked whether PAGCOR had a five-year contingency plan to keep supporting universal health care despite the recent Supreme Court decision and arrears burden she described. Chairman Alejandro Tengco called continuing support PAGCOR's commitment and said that, if decoupling or privatization went ahead, personnel, rent, and utility costs could decline; he put those costs at about PHP 15 billion a year. He said PAGCOR's financial position would be stronger after an adjustment period, but did not provide a five-year plan, a funded UHC schedule, or a quantified UHC guarantee.

[03:36:28 · asr-003241](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003241) · [03:37:03 · asr-003245](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003245)

### Western Visayas cancer equipment and support for children with special needs

After saying Western Visayas Medical Center's bed capacity had expanded from 420 to 700, Baronda asked PAGCOR to consider help in equipping its cancer center and to liaise with the Integrated Resorts Foundation. Tengco committed during the hearing to support and donate medical equipment for the expanded hospital and said PAGCOR should discuss how it could help. Baronda then proposed equipment and building support for children with special needs and said she would coordinate with the Education Secretary for a list of regions needing assistance. Tengco said PAGCOR would consider the proposal and later said it would seriously look into it; no project, budget, site list, or delivery timetable was approved in the round.

[03:39:57 · asr-003270](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003270) · [03:41:01 · asr-003280](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003280) · [03:43:08 · asr-003298](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003298)

### PAGCOR Dakila Awards criteria and follow-up

Baronda commended the PAGCOR Dakila Awards for women and asked what requirements and indicators governed awards for public servants at local and national levels. Tengco said the program was implemented because of GAD-law requirements but that he was not privy to its operating details. He said he would discuss the questions with the person in charge and ask her to contact Baronda to clarify the project. Baronda asked that the program be long-term and include private-sector supporters as well as women in government. No eligibility criteria, award decision, or long-term-program commitment was supplied in the round.

[03:43:51 · asr-003304](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003304) · [03:44:39 · asr-003309](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003309)

## Rep. Jesus "Bong" C. Suntay

### Revenue mix, 2026 projections, and requested reporting

Suntay asked how Casino Filipino, private licensed casinos, and digital e-games were contributing to PAGCOR's revenue and requested a detailed property and revenue list for the Committee. In the fragmented exchange, the hearing stated 2026 gross gaming revenue projected at roughly PHP 9-10 billion for Casino Filipino, alongside about PHP 31-31.5 billion in projected private-casino revenue and roughly PHP 38-40 billion in projected digital e-games revenue. PAGCOR said it would provide a detailed list covering Casino Filipino properties and revenue from licensed casinos, Casino Filipino, and online gaming. The figures were projections voiced during the exchange, not actual 2026 results, and the requested list was not supplied in the round.

[03:47:33 · asr-003322](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003322) · [03:48:08 · asr-003326](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003326) · [03:49:31 · asr-003344](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003344)

### Online-gaming reliance, social concerns, and regulatory control

Suntay asked whether PAGCOR's growing reliance on digital e-games was a positive development or a concern. He linked online gambling to people he described as financially vulnerable, contrasted online access with the physical barriers of casinos, and questioned the tension between revenue drawn from gaming and PAGCOR-funded social assistance. He was not calling for online gaming to be abandoned; he pressed for effective policing, especially for minors and other people at risk, before the market became too large to control. Tengco agreed that regulatory safeguards needed strengthening and said PAGCOR was regularly updating its online-gaming rules and guidelines. He said rapid technological change and illegal operators, including those operating from outside the Philippines, meant PAGCOR could not simply withdraw from licensed online gaming. The exchange included an unclarified P15-18-billion social-outlay discussion, so it supplies no settled social-spending total or new regulatory threshold.

[03:50:27 · asr-003354](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003354) · [03:50:49 · asr-003357-split-2](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003357-split-2) · [03:56:36 · asr-003432](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003432)

## Rep. Alyssa Michaela "Mica" M. Gonzales

### Proposed limits on online deposits and gaming activity

Gonzales raised the lack of a daily or weekly cap on an online player's betting and asked who could set one, framing it as protection against excessive gambling. Tengco said PAGCOR had not set a cap. He said he believed a proposed online-gaming law would include caps on deposits and gaming activity; that was a reference to proposed legislation, not an existing PAGCOR limit or a commitment that a cap would take effect. Gonzales said the relevant Senate and House committees were pursuing that direction.

[04:01:47 · asr-003502](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003502) · [04:02:37 · asr-003509](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003509)

### Government employees, KYC screening, and illegal online gaming

Gonzales asked how online platforms detect government employees who are barred from gambling. Tengco said licensed operators use know-your-customer (KYC) checks and PAGCOR carries out secondary screening before withdrawal; if a government employee is found, PAGCOR voids the winnings. He said nearly PHP 500 million in winnings had been voided over the preceding two years, while acknowledging that some people pass initial screening with false IDs or by failing to disclose government employment. When Gonzales asked again about online safeguards, Tengco distinguished legal licensed platforms, which he said use KYC, from illegal operators, which he said have none for age, occupation, or identity. The exchange described the legal-platform KYC passage rate only as high-90s percent.

[04:03:26 · asr-003519](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003519) · [04:04:03 · asr-003523](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003523) · [04:07:03 · asr-003553](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003553)

### Self-, family-, and restricted-person exclusion

Gonzales asked whether players can be permanently blocked from casinos. Tengco said PAGCOR's list had 15,000 names barred from casinos and online platforms, generated through self-exclusion and family-exclusion programs. He said a self-exclusion ban stays in place for years and is not routinely lifted; people in the National Database of Restricted Personnel are also distributed to casinos. He added that roughly 11,000 people had applied for PAGCOR self-exclusion in the prior year. These were reported program figures and mechanisms, not a new exclusion action taken during the round.

[04:08:23 · asr-003567](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003567) · [04:08:53 · asr-003572](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003572)

## Rep. Shirlyn L. Bañas-Nograles

### Online-gambling safeguards and unlicensed platforms

Bañas-Nograles asked what stringent technical protocol licensed online-gaming operators use to protect minors, government employees, and low-income people, citing easy mobile-and-payment-gateway access and low-value "micro-bets." Tengco identified know-your-customer (KYC) checks as the safeguard for licensed online platforms: a player must complete KYC and provide a valid government ID before playing. He said the larger problem was unlicensed operators, which he put at 50% of the industry and said had no comparable process, allowing minors, poor people, and government employees to play. Those were Tengco's reported industry and control characterizations; he did not announce a new technical protocol in the round.

[04:11:27 · asr-003598](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003598) · [04:13:31 · asr-003623](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003623)

### General Santos assistance and disaster-relief procedure

Bañas-Nograles asked how PAGCOR allocates and operationalizes calamity relief, including whether it had assisted General Santos after the earthquake and its reported classroom damage. Tengco said PAGCOR had supported General Santos victims with financial and relief packages and coordinated with the Office of Civil Defense, which helped airlift the assistance. The continuing agency response described voluntary help after major calamities and said affected areas could write to PAGCOR; it reported more than 100,000 relief packs sent nationwide in the preceding week and a half and said the agency would respond to the best of its ability. The live r41 labels in this continuation conflict, so the digest does not categorically assign the passage to Tengco. It did not give a General Santos-specific allocation, amount, or classroom commitment.

[04:12:22 · asr-003607](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003607) · [04:15:08 · asr-003648](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003648) · [04:15:46 · asr-003655](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003655)

### Damaged classrooms and the new-construction limit

Bañas-Nograles then asked for help with classrooms damaged by the earthquake. Tengco said PAGCOR was not allowed to fund repair or rehabilitation, but described its program to construct 125 new school buildings, equivalent to about 1,200 new classrooms. Bañas-Nograles said she would write to and communicate with PAGCOR; no repair funding or project for the damaged General Santos classrooms was committed in the round.

[04:16:35 · asr-003665](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003665) · [04:16:42 · asr-003667](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003667)

## Rep. Antonino B. Roman III

### Social-civic portfolio and annual budget basis

Roman asked what PAGCOR's social-civic projects covered, including school buildings, patient transport vehicles, and relief work. Tengco described those programs, including the planned 125 school buildings, equivalent to about 1,500 new classrooms, and relief packages pre-positioned with the Office of Civil Defense. Roman then compared the social-civic line with income, calculating about 8.3% for 2025, about 16% for 2026, and 15.6% projected for 2027. Tengco said PAGCOR does not use a hard-and-fast percentage: it sets an annual budget based on expected needs, including relief-pack planning, coordination with the Office of Civil Defense, and weather forecasts. The figures were Roman's comparison and Tengco's budget explanation, not a newly adopted percentage or remittance decision.

[04:17:32 · asr-003683](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003683) · [04:18:29 · asr-003695](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003695) · [04:21:17 · asr-003745](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003745)

### School-building funding, Bataan requests, and DepEd vetting

Roman asked whether the 2027 social-civic projection accounted for pending school-building and other requests, then pursued Bataan requests submitted through DepEd. Tengco said the school-building program represented about PHP 7.5 billion, spread through 2027 because construction would not finish in the current year. He said DepEd vets and identifies locations, while PAGCOR funds construction; PAGCOR does not select the sites, run bidding, or choose contractors. On Roman's district, Tengco said three Bataan schools were on the list but could not give a 100% assurance because the nationwide budget covers only 125 buildings. He said PAGCOR would try to include at least one, subject to DepEd vetting and site requirements such as title and roughly 2,000 square metres, and would speak with Roman after the hearing. That was a qualified undertaking, not approval of a particular Bataan school or construction award.

[04:22:06 · asr-003765](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003765) · [04:22:38 · asr-003782](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003782) · [04:24:37 · asr-003855](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-003855)

## Rep. Atty. Miro S. Quimbo

### Proposed Marikina casino site

Quimbo raised the status of a casino proposal associated with Marikina and objected to locating it in a city-owned government facility. Tengco said his understanding was that the casino would no longer proceed at the original site and that proponents had been considering another location; he said PAGCOR would check again and update Quimbo. The exchange did not establish a final site, permit decision, or completed relocation.

[04:30:12 · asr-004066](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004066) · [04:31:54 · asr-004081](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004081)

### Repairs to a PAGCOR-built Marikina school

Quimbo said PAGCOR had built a school in Marikina in 2014 and asked whether minor repairs could be supported, given constrained funds and competing requests. Tengco said PAGCOR was generally not allowed to do renovation, but invited a written request and said it could be discussed and reviewed if the scope was not large. The officials referred to the building's aging facilities, and Tengco later said the request would happen. No defined repair scope, cost, funding authorization, or completion timetable was approved in the round.

[04:32:21 · asr-004086-split-3](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004086-split-3) · [04:33:02 · asr-004100](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004100) · [04:33:51 · asr-004124](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004124)

## Rep. Mark O. Cojuangco

### Hospital partnerships and PAGCOR equipment support

Cojuangco asked whether PAGCOR funds hospitals. Tengco said PAGCOR itself does not fund hospital construction; foundations linked to licensees normally fund large projects, while PAGCOR can help procure equipment. He cited a Clark multi-specialty hospital funded by Bloomberry Foundation for more than PHP 1 billion, with PAGCOR helping purchase equipment. He also cited the Conrado Estrella District Hospital: PAGCOR had given PHP 100 million during his predecessor's time, and Tengco later helped after the hospital needed equipment. Tengco said the support is handled case by case so PAGCOR does not spread itself too thinly; the examples did not establish a general hospital-construction program.

[04:34:42 · asr-004138](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004138) · [04:34:49 · asr-004140](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004140)

### Pangasinan hospital proposal and completion-linked assistance

Cojuangco described an approximately PHP 1-billion hospital proposal for Pangasinan's second district and asked whether PAGCOR could help reduce the Department of Health burden. Tengco cautioned that PAGCOR assistance must be liquidated and that an incomplete project could restrict later aid while a multi-year project remained unfinished. He said PAGCOR is directed to help construct a project funded to completion, and suggested a building portion or equipment for a completed building as more workable paths. After Cojuangco said his district had received the least among Pangasinan's six districts by more than PHP 2.5 billion since 2022, Tengco made no allocation. Instead, he asked Cojuangco to write so they could meet and discuss equipment needed to make a completed hospital project operational; the outcome was a conditional discussion, not funding approval.

[04:37:10 · asr-004171](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004171) · [04:37:39 · asr-004176](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004176) · [04:41:00 · asr-004199](https://tordecilla.github.io/budget-hearings-2026/records/3/#asr-004199)