Events IAGA SUMMIT San Francisco 2019
environmental concerns. An IR that was set to break ground in Boracay, a popular tourist destination, cancelled its construction plans as a result of public backlash.
Te rapid spread of POGOs catering to the China market has been cited by the Department of Finance as the cause of the increase in illegal immigrants and undocumented workers from China, accusing POGOs of non-remittance of taxes based on these employees’ undeclared income. In response to these allegations, PAGCOR has required all POGOs and service providers to submit a comprehensive list of all their respective employees, including their nationality and visa status in the country, if applicable.
Te casino industry was also previously criticised as unregulated and a haven for money launderers in the Philippines and abroad.
PAGCOR continues to be criticized for being both a regulator and an operator of casinos in the country, with critics saying that this dual role is detrimental to the integrity of PAGCOR’s rule-making power. Some legislative bills have been filed in the last Congress seeking the separation of these roles. PAGCOR has yet to comment and has stated simply that its charter mandates it to exercise these powers.” Hermio Ozaeta Jr., Senior Partner,
Romulo Mabanta Buenaventura Sayoc & De Los Angeles
offshore-authorised players who have registered and established an online gaming account with the PAGCOR-licensed POGO. Filipino citizens, even if based abroad, are not allowed to open gaming accounts. Te POGO Rules provide for the licensing, registration, or accreditation not only of actual offshore gaming operators, but also of service providers who supply affiliated services of the online gaming process, such as gaming agents, gaming software/ platform providers, gaming support providers, business process outsourcing facilities, and data/content streaming providers.
In July 2018, PAGCOR circulated the Offshore Gaming Regulatory Manual (“OGRM”) which is a compilation of new and existing rules for POGOs. Te OGRM covers regulations on anti- money laundering, financial reporting and remittance, requires the installation of third- party audit platforms, inspection procedures for POGOs and services providers, and includes provisions on responsible gaming.
Since PAGCOR issued its regulations, there are now 55 POGO licensees registered with PAGCOR, with hundreds of other accredited services providers providing strategic and customer services to POGOs registered in the Philippines and those based abroad.
PAGCOR disclosed that their revenue from
POGOs reached Php7.365bn (US$139.3m ) in 2018 – almost double the amount contributed in the previous year.
REGIONAL CASINOS AND MASS MARKET In addition to the rise of IRs and POGOs
primarily catering to offshore players, regional mass market casinos in the Philippines still remain popular with the local players and smaller foreign junkets.
In 2018, casino operations recorded 24.4 per cent growth year-on-year in the amount of aggregated gross gaming revenues that had been generated by junket operators in the Philippines. In terms of non-junket operations, the official 2018 data confirmed aggregated gross gaming revenues of $1.4bn, which had accounted for some 40.7 per cent of the combined total, and detailed that electronic gaming machines had captured a 31.6 per cent market share to bring in a share of over $544.3m.
GROWING PAINS With unprecedented growth in the gaming
industry in the Philippines comes criticism and controversy, especially in a predominantly Catholic country.
Some local governments have declared that their areas should remain off-limits to casinos and gaming operators, citing religious and
PAGCOR continues to be criticised for being both a regulator and an operator of casinos in the country, with critics saying that this dual role is detrimental to the integrity of PAGCOR’s rule-making power. Some legislative bills have been filed in the last Congress seeking the separation of these roles. PAGCOR has yet to comment and has stated simply that its charter mandates it to exercise these powers.
LOOKING AHEAD Government agencies and regulators are quick
to respond to issues and feel the pressure to improve regulations in order to maintain the industry’s growth and sustainability. In late 2017, Te Anti-Money Laundering Council of the Philippine Central Bank, together with PAGCOR and other gaming regulators signed the Casino Implementing Rules and Regulations (CIRR) of Republic Act No. 10927 or an act designating casinos as covered persons under the Anti- Money Laundering Act (AMLA) of 2001.
In January 2019, PAGCOR promulgated the Customer Due Diligence Guidelines for Offshore Gaming. Te guidelines will ensure that the Philippines will not be used as a money laundering and terrorist financing site for the proceeds of any predicate offense through the offshore gaming platform being operated in the Philippines.
PAGCOR also continues to work with the Department of Labor, Department of Finance and Bureau of Immigration in order to control and regulate the influx of foreign workers in the gaming industry. To effectively monitor the number of employees engaged in online gaming, as well as to track the number of foreign workers and determine whether they possess valid work and visa requirements, PAGCOR is currently planning to implement a separate licensing or accreditation to employees of POGOs and service providers, which is similar to the licenses already being given to employees of land-based casino establishments in the Philippines.
NEWSWIRE / INTERACTIVE / MARKET DATA P67
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124
