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Liz Servañez
Liz Servañez serves as Branch Manager in the Philippines.
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Christine Aguilar
Christine Aguilar serves as Head of Operations in the Philippines.
The Philippine gaming industry has made nearly PHP 82 Billion ( over $1.4 Billion) as Groos Gaming Revenue during the first quarter of 2024, making it an attractive destination for foreign investors operating in the iGaming industry.
However, the Philippines has strict regulations surrounding the gambling industry regulated by PAGCOR. Therefore, If you’re considering entering the Philippine gaming market, obtaining a PAGCOR license is a crucial step.
This article will guide you through the process of applying for a PAGCOR gaming license, outlining the requirements and steps involved.
The Ban on Offshore Gaming Operators (POGOs) in the Philippines
Philippines Offshore Gaming Operators (POGOs) have been a significant part of the country’s gaming sector, catering primarily to international markets by offering online casino games, sports betting, and other internet-based gambling services. Their primary customers are in countries like China, Korea, and Vietnam.
From 2017 to October 2022, POGOs contributed PHP 53.8 billion in taxes. This amount includes PHP 30 billion from the Philippine Amusement and Gaming Corporation (PAGCOR) and PHP 23.8 billion collected by the Bureau of Internal Revenue.
However, a significant shift occurred during President Marcos’ State of the Nation Address (SONA) on July 22, 2024. The President announced an immediate ban on all POGO operations within the country, citing concerns over the societal impact and negative perception associated with the industry. As a result, all POGOs have been given a year to wind down their operations and exit the Philippines.
PAGCOR, as the regulatory body, continues to oversee other forms of gaming licenses, such as those for casinos, internet gaming, and other regulated gaming activities
Role of PAGCOR in Online Gaming in the Philippines
The Philippine Amusement and Gaming Corporation commonly known as PAGCOR is a government-owned and controlled corporation. It is responsible for operating, regulating, and licensing gaming activities in the Philippines.
The PAGCOR’s mandate covers both land-based casinos and online gaming operations related to all games of chance. Therefore, anyone who wants to carry out internet gaming operations in the Philippines must obtain a gaming license from PAGCOR to do so.
PAGCOR offers several types of licenses depending on the nature of gaming operations:
- Electronic Gaming License: For internet gaming sites
- Casino Gaming License: For land-based casino operations
- Offshore Gaming License: For online gaming operations targeting foreign markets (banned as of July 2024)
- Sports Betting License: For sports betting operations
After the ban on POGOs, the Electronic gaming license, also known as internet gaming license or e-gaming license in the Philippines, is currently one of the most sought-after licenses by foreign investors.
Key Requirements for PAGCOR’s Online Gaming License in the Philippines
To apply for a PAGCOR e-gaming license, you’ll need to meet several requirements such as:
- Business Registration: with the Securities and Exchange Commission (SEC) of the Philippines.
- Capitalization: PAGCOR requires a minimum paid-up capital stock of PHP 25 Million (USD 429K*) for gaming operations.
- Operational Plan: A detailed plan of your proposed gaming operations is required.
- Technical Capabilities: You need to demonstrate that you have the necessary technical infrastructure and expertise to run a gaming operation.
- Financial Capacity: Proof of financial capacity to sustain operations and meet financial obligations is necessary.
- Compliance Measures: You must have anti-money laundering (AML) and responsible gaming measures in place.
Emerhub’s local experts help you comply with all the requirements and significantly streamline your journey to acquiring a PAGCOR gaming license.
*may vary based on the current exchange rate
How to Apply for the PAGCOR Gaming License
After the SEC company registration in the Philippines and meeting other key requirements for gaming operations, you can apply for an internet gaming license with PAGCOR.
To apply for the internet gaming license, you need to follow the following steps:
1. Submit a Letter of Intent
The first step to obtaining a gaming license in the Philippines is to send a letter of intent to PAGCOR expressing your interest in obtaining an offshore gaming license. This letter briefly outlines your proposed operations and demonstrates your understanding of the Philippine gaming market.
The Offshore Gaming Licensing Department (OGLD) evaluates the initial application and if satisfied, issues a deposit notice to the applicant along with the payment form. The usual deadline for making the payment is one month.
2. Application Submission to PAGCOR
Once the application and processing fee payment has been made, the next step is to submit your formal application as per the application kit provided by OGLD.
The required documentation for the PAGCOR Internet Gaming License usually includes:
- Articles of Incorporation and by-laws (SEC Registered)
- Board Resolution authorizing application
- Company profile
- Proof of financial security
- Mandatory Business permits and licenses
- Compliance with AMLA (anti-money laundering regulations)
- Proof of payment for the application and processing fee to OGLD
The Offshore Gaming Licensing Department thoroughly evaluates the application and requests additional documentation if necessary. Once satisfied, the OGLD issues a notice of board approval to the applicant.
3. Pre-Operational Site Inspection
After the application submission, the next step is pre-operational site inspection. Once the initial board approval is issued, the OGLD informs the applicant regarding the date for site inspection and other requirements.
4. Obtain a BIR Registration Certificate for Taxation
As part of the licensing process, you’ll need to register with the Bureau of Internal Revenue (BIR) and obtain a registration certificate. This is crucial for tax compliance, as offshore gaming operators are subject to specific tax regulations in the Philippines.
5. Register with the Anti Money Laundering Council (AMLC) and Meet the Compliance Requirements
Before you receive the official Notice to Commence Operations, you must also register with the AMLC council and create a regulatory framework that complies with AMLC.
As a part of AMLC compliance, all gaming operators are required to appoint a compliance officer and develop a Money Laundering and Terrorism Financing Prevention Program (MTPP). In addition to that, you also need to appoint a record-keeping officer who ensures compliance with AMLA’s record-keeping requirements.
Once all requirements are met, the OGLD issues the certificate and Notice to Commence Operations.
Validity and Renewal of the PAGCOR Internet Gaming License
Every internet gaming license certificate issued by PAGCOR is valid for two years from the date it was issued. To renew the gaming license, the licensee must submit a letter of intent to PAGCOR in addition to all the required documents at least one month before the expiry of the license.
The Internet gaming license renewal documents include:
- A certified copy of the General Information Sheet
- Personal Disclosure Sheet (PSD)
- A notarized application form for renewing the license
- The certificate of registration with the Anti-Money Laundering Council
- Income Tax Returns
- Proof of payment for license renewal fee
As per PAGCOR’s regulations, all the license holders who have received more than 150 demerit points during the previous tenure are not eligible to renew their license.
Get Your PAGCOR Internet Gaming License with Emerhub
Obtaining a PAGCOR online gaming license is a complex process that requires extensive documentation and strict compliance. Therefore, it is advisable to partner with local experts such as Emerhub who are well-versed in local regulations and make the process easier.
Emerhub’s experts will guide you through every step of the process. We will register your company and obtain the necessary licenses and permits on your behalf. Moreover, our experts will gather all required documentation for the PAGCOR gaming license to ensure full compliance and help you successfully obtain the license.
Fill out the form below to discuss your needs and goals with our experienced business advisors in the Philippines.
