ACN Spotlight: NYCE Int Managing Partner Outlines How PAGCOR Can Successfully Shift to Regulatory Role

October 15, 2024 Philippines Events & Announcements iGaming & Gambling

Harmen Brenninkmeijer believes PAGCOR’s shift to regulator-only status will allow for a greater focus on enhancing regulation and implementing sophisticated responsible gaming measures.

As the Philippine Amusement and Gaming Corporation (PAGCOR) prepares to cease its role as a casino operator and focus solely on regulatory responsibilities, Harmen Brenninkmeijer, Managing Partner of NYCE International, weighed in on the implications of this significant shift. PAGCOR is currently in the process of transitioning towards becoming a purely regulatory body from its current dual role as both operator and regulator. In early 2026, the government agency will privatize around 40 casinos under the Casino Filipino brand nationwide.

In an exclusive interview with Asia Casino News (ACN) during the 2024 SPiCE Philippines event held at Shangri-La Mactan in Cebu, Brenninkmeijer highlighted the challenges and opportunities that lie ahead for PAGCOR and the broader gaming industry in the Philippines.

PAGCOR’s transition involves selling off its casino assets starting in 2026 while retaining its regulatory role. This change aims to allow the agency to concentrate more on monitoring and policing the rapidly growing gambling sector in the Philippines. Brenninkmeijer emphasized that there are numerous issues within the current gaming framework that require attention. He noted, “A number of the issues were predictable, such as the complexity of running the POGOs [Philippine Offshore Gaming Operators], which is now a moot point.”

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He further elaborated on the need for improved control systems, stating, “Other areas for improvement involve enforcing control systems, not just for electronic gaming (like standard casino monitoring systems), but also for better table game monitoring systems, gaming middleware for managing key data, and other forms of gaming.”

As PAGCOR transitions to a regulatory body only, Brenninkmeijer believes this shift will enhance its effectiveness.

He stated, “Once PAGCOR becomes a regulator only, it will free up time and focus on improving regulation. Simultaneously, it would help to implement more sophisticated responsible gaming measures. This could foster a healthier gaming industry where players can manage their play amounts and engage in more responsible gaming.”

In discussing how PAGCOR can facilitate a seamless transition, Brenninkmeijer outlined several proactive measures the agency has already undertaken. “A few actions PAGCOR already initiated include establishing an academy to get people trained, adjusting tax rates, and focusing on developing a positive environment whereby PAGCOR works with the operators to learn what is needed to develop a vital gaming industry, based on transparency and growth,” he explained. However, he cautioned that more steps are essential to ensure the transition is effective and beneficial for all stakeholders involved.

Looking beyond the Philippines, Brenninkmeijer was asked about potential growth opportunities in Southeast Asia’s online gaming market. He highlighted the challenges posed by a lack of regulatory environments in many Southeast Asian countries.

“Due to the absence of a regulatory environment, it will be hard to advise on which market beyond the Philippines will be growing. In general, there will be growth anywhere, and governments should really look at how best to regulate to take advantage of the taxation revenues it could generate,” he said. He specifically mentioned Thailand’s evolving landscape, anticipating that growth would extend beyond land-based sectors.

When it comes to sports betting in Southeast Asia, Brenninkmeijer noted that the sector is already outperforming other regions. “Sports betting in Asia is already outperforming the rest of the world. But if one thinks of the game developments taking place, there is more growth to follow. iGaming (playing slots, crash and live games) will be growing faster though,” he added.

The conversation also touched on Singapore’s recent decision to ban cryptocurrency in casino gambling due to money laundering concerns. Does he think that Singapore’s move indicates a declining interest in cryptocurrency within the casino space?

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“Absolutely not. I believe that it will push better control systems to be put in place. Cryptocurrency is actually very traceable if one enforces KYC systems to be put in place, and a ban will only make this process happen faster. Singapore will accept cryptocurrencies within five years,” Brenninkmeijer stated confidently.

Brenninkmeijer then outlined NYCE International’s strategic direction for the coming months. “NYCE is a sales advisory organization; we search for very innovative products and conduct health checks on them. We maintain relationships with many suppliers, helping the industry to develop professionally and responsibly. We are pushing the products but are really establishing a base for introducing our own technology IP for further growth,” he explained.

Looking ahead to 2025, he disclosed that their future plans involve retention systems, affiliates, and promotional games, reflecting a commitment to enhancing the overall gaming experience.

Brenninkmeijer’s insights provide a roadmap for navigating the challenges and opportunities facing PAGCOR and the gaming industry in the Philippines. As PAGCOR transitions into a purely regulatory role, it will need to implement effective measures to foster a sustainable and responsible gaming environment, ensuring that it can meet the needs of an evolving market.