The ban on Philippine Offshore Gaming Operators (POGOs) has not entirely been a bad thing, as Special Class Business Process Outsourcing (SCBPO) companies are now offered a highly regulated and diverse framework to work in, particularly those facing major gaming operators licensed in verified jurisdictions.

A distinct case is that of Claymore Solutions, who fully supports gaming operations themselves without being directly involved, providing a bespoke hiring platform and being an Employer of Record – granting gaming companies operating capacities (those that don’t handle cash or bets) under its PAGCOR accreditation.

This comes in the wake of the massive ban on POGOs by the Philippine President, implemented effectively on January 1^st of this year.

Speaking to AGB, Paul Fox, the Chairman and Founder of Claymore, indicates that their latest partnership with Fanatics Betting & Gaming – one of the US’ top-tier gaming operators – leverages their capacity while avoiding any possible complications.

Fox says that he found a gap in the market, even before the POGO ban, looking to provide gaming back-office functions to companies aiming to capitalize on the cheaper labor and strong knowledge base of the Philippine market.

And that makes sense, after some 40,000 former POGO workers were disenfranchised due to the ban: there’s a wealth of talent to pull from, without requiring retraining – plus they speak the main language of the customer base abroad.

Post-POGO era

The time of offshore gaming in the Philippines has come to an end. But that doesn’t mean that there are still some hangovers on perception. Fox laments how the numerous scandals with POGOs in the nation have hardened investors’ hearts towards an environment which is brimming with potential.

However, times are changing, and the strong focus on legislative alterations and enforcement has even caused the nation to get off the Financial Action Task Force (FATF) grey list – a huge signal for foreign investors who would like to approach.

And labor is key for all of these operators seeking a lowered financial output but with maximum talent input.

“Given our ongoing discourse with the Department of Labor and Employment (DOLE), we have the capacity to pinpoint highly-trained individuals already skilled in the areas which are necessary, and deploy them to the best possible new venture,” notes Fox.

Fox highlights that now the business runnings are at 100 percent, evidenced by its recent partnership with Fanatics – under which it provides not only talent, but a physical space, aiming to showcase its offerings in one of Manila’s most central areas (BGC).

Pinpointing opportunities

The road has been long. The company took years to establish its relationship with the gaming regulator PAGCOR (with Chairman Al Tengco even giving an attribution in their recent press release). But the results will be evident, says Fox.

“We are focusing on top-tier, highly-regulated operators, who can explore the opportunity and gain a strong advantage, leveraging the incredible talent pool that has been created over the years here in the Philippines, all while contributing back to the local economy,” notes the executive.

Fox himself is no stranger to the Philippines, having worked over 16 years in the environment, helping major labels set up their operations before moving to his latest project.

How to set up shop

It proves to be quite simple. Companies register under an enterprise such as Claymore by submitting simple paperwork and proof of legitimacy in a ‘recognized’ region (see UK, US etc). Those documents are submitted via Claymore to register the company under its PAGCOR accreditation and the regulator provides the final stamp of approval.

Clients are vetted, and Fox notes that they aim for those registered in “top-tier jurisdictions”.

One point of clarity is that Claymore “does not take any bets here”. The group acts purely as a service provider and is not involved in the operations or the individual acts of its clients.

And that helps in processing time. The executive notes that the overall registration is “fast”, given that the “heavy lifting is already done”.

Claymore benefits by being a first mover. The model is abstract from the “captive centers” that exist, as numerous other SCBPOs might not be around for much longer due to their focus (which includes gaming operations), potentially giving it even more space to explore the market.

And the support for disenfranchised Filipinos is strong. The POGO ban affected many more than those just involved in gaming. A recruitment route for legitimate employment in the gaming industry (without the caveats) could prove highly beneficial.

What is certain is that SCBPOs are not at all dead, and can seek new avenues to provide other gaming jurisdictions with a highly talented workforce, at a fraction of the price.