Online gaming operators and service providers also face higher capital requirements in face of new PAGCOR framework in the Philippines

Apart from requiring internet gaming operators and their service providers to re-apply for their licenses, PAGCOR would also require a higher authorized capital of 100M pesos; new capital requirement 85% higher than in previous framework.

Original story by Iris Gonzales for The Philippine Star

The Philippine Amusement and Gaming Corp. (PAGCOR), the country’s gaming regulator, has tightened rules on online gaming,aimed at maintaining the highest standards of integrity.

In a memorandum dated July 10, PAGCOR said its board approved the new rules which shall govern the issuance of licenses on internet gaming as well as its operations.

The stricter rules require higher capital requirements and a provision that requires all existing internet gaming operators and service providers to re-apply for new licenses starting July 17, 2023.

All license renewals shall be subject to continued compliance of the licensee with all the rules and regulations and other application laws.

There is also a catch-all provision that prohibits licensees from conducting activities other than gaming in the operating sites and being involved in any activity that jeopardizes PAGCOR’s integrity.

PAGCOR’s new internet gaming licensing regulations require, among others, that an internet gaming licensee must have an authorized capital of at least P100 million, of which P25 million must be paid up.

This is higher than the previous capital requirement of only P15 million with P3 million paid up.

The licenses shall only be valid for two years and are site specific. This means that licenses outside of the exact address indicated are invalid.

Offshore gaming operators in the country have faced several crime-related issues this year.

Police early this year also rescued around 3,000 Filipino and foreign workers while serving a search warrant on a Las Piñas City POGO firm allegedly involved in human trafficking and other illegal activities.

Just last week, authorities raided an alleged POGO and ‘cybercrime hub’ in Pasay City, a component city of Metro Manila; a total of 650 workers, 464 of whom are Filipinos and 186 foreigners of various nationalities, were taken into custody.

National figures have weighed in on the nature of POGOs, with one senator taking a contrary stance to others who are calling for an outright ban. Other senators have cited POGOs as avenues for human trafficking and other crime, while the country’s secretary of finance earlier this year said that the revenue raked in by POGOs are not significant.

To learn more on the mechanics of the new framework, read the original story of Iris Gonzales for the Philippine Star here: https://www.philstar.com/business/2023/08/01/2285229/pagcor-sets-new-rules-internet-gaming-operations#:~:text=Pagcor’s%20new%20internet%20gaming%20licensing,with%20P3%20million%20paid%20up.