95
Moreover, all the countries referred
to in paragraph 1.1 have excluded gam-
bling services from their World Trade
Philweb Net Income: Pesos mil.
Organization obligations under the Gen-
eral Agreement on Trade in Services,
350
thereby removing the scope to claim
that such supplies from the Philippines
300
and other jurisdictions in which they are
licensed cannot be blocked” 200
In addition an interesting quote
from an operator in the First Cagayan
150
outlines the relationship with China:
“China’s policy is like keeping one eye
100
open and one eye closed,” says Hsu
Hwa-min, chairman of iFaFa, one of the
50
online casinos registered in the Cagayan
zone. “The expectation is that eventu-
ally they’ll opt to regulate this industry
0
instead of losing the business to other
countries. By then, the Philippines will
-50
2005 2006 2007 2008
have moved ahead.”
Online revenues
Leisure and Resorts World Corporation
(LRWC) holds 69.5 percent of shares in
Breakdown of PAGCOR’s Games
FCLRC. LRWC’s 2008 Annual Report
provides some key revenue statistics for
online gambling in the Philippines.
For the year of 2008 FCLRC posted
a net income of P99.8 million a 24.1
Other
percent increase from P80.4 million in
Games
2007. They state that this is attribut-
able to the increased revenues of loca-
28%
Slot
tors. Revenues are generally collected in 39%
US dollars, thus the currency deprecia-
tion of the peso in late 2008, increased Table Card
the peso revenue. As of the end of 2008
Games
there were 35 licensed locators, 30 of
which were in operation. Interestingly
13%
Video
Poker
this is a decrease compared with 2007
20%
where there were 42 licensed locators
and 35 of these were in operation.
Total revenues were P219.1 million in
2008 comprised of P178 million in host-
ing and service fees and P41.1m in licence
One major growth area has been the and the Games and Amusement Board
application and renewal fees. CEZA’s fees
terrestrially based eGames cafes, where (GAB), which oversees the wagering
increased by 33.4 percent in 2008.
players can logon to the gaming sites. The which occurs on the races. These bod-
PAGCOR operates e-Games, an on-
eGame cafes offer various online casino ies supervise the two major racing enti-
line betting interface often run through
games including card games, slots and ties - the Manila Jockey Club (MJC) and
terrestrial cafes, and online sports bet-
video poker. According to PAGCOR’s the Philippines Racing Club Inc (PRCI).
ting operations. PAGCOR’s e-Games
website, slots are the most popular on- MJC was incorporated in 1937. In
operation has shown steady growth. Its
line game offered representing almost 40 1972 the company was granted a fran-
technical partner, Philweb, has seen its
percent of the market. At the end of 2008 chise to operate and maintain a race-
net income rise by almost 300 million
there were 121 eGames cafes, an increase track and conduct horse races. This
pesos since the inception of the eGames
of 45 percent from the previous year. franchise was renewed on November 23,
platform in 2005 (see chart). According
1997 under R.A. No. 8407 for another
to their press statements and annual re-
Racing term of 25 years. Similarly PRCI’s fran-
ports Philweb’s net income grew from
There are two main oversight bodies chise was renewed for another 25 years
-2.3 million pesos in 2005 to 116.1 mil-
for the racing industry - the Philippines commencing October 1997. Each of the
lion pesos in 2006, and has more than
Racing Commission (PRC) which over- two operators holds approximately half
doubled since then.
sees race events and track facilities, the market share in horse wagering.
March 2010
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