Lower licensing fees and tighter probity checks are helping to “cleanse” the multiple criminal elements reported in previous Philippine offshore gaming operators (POGOs) operations, PAGCOR officials commented.
A talk held at the 6th ASEAN Gaming Summit today brought together several Philippines public officials involved in overseeing and regulating the country’s onshore and offshore gaming operations, including Gilbert Remulla, member of the PAGCOR Board of Directors and Jessa Fernandez, Assistant Vice President for the agency Offshore Gaming Licensing Department.
Remulla underlined that the recently announced lower percentage license fees for both online and on-site betting platforms to an average rate of 35 percent, starting in April 1, will help bring to the fold “black market” players in the online gaming sector.
“Lowering the fees incentivises these black market players to legitimise themselves, since with this rate their profits would be comparable [to their underground operations],” Remulla noted.
Meanwhile, Jessa Fernandez, pointed out that the new licensing probity check regulations have also created a tighter net, to assure applicants are free of criminal connections or compromised politically.
“We had a major revamp in 2023 and received a lot of re-applications and new applications from new operators. We are still in the process of vetting these licensee using the new framework that we approved,” Fernandes noted.
Last year, as part of the intensified inter-agency effort to address all illegal activities being linked to offshore gaming operations in the country, PAGCOR announced a new regulatory framework for POGOs, putting all POGO licensees under a probationary status until they meet all the requirements for a new license.
A deadline for all existing POGO licensees and service providers to re-apply for their licenses was set until September 17, 2023, with the moving coming amongst new capital requirements and tax changes.
According to the PAGCOR legal advisor, some 49 internet gaming licensees holding either regular or provisional licenses. Under the previous framework some 200 internet license providers were licensed, with Fernandes noting only 21 exist at the moment.
The level of applicants was such that a moratorium for new applicants was enforced for new applicants.
“We had a temporary suspension to focus on the applicants we have received, we received 200 applications in July and since we are vetting them thoroughly to make sure they are not connected to criminal or suspicious activities, while checking their work in the previous framework. Little by little we will removing the suspension”
However, that does not mean some illegal operations don’t escape the net, with officials addressing a recent police POGO raid in Bamban town, Tarlac province, which resulted in the rescue of 371 Filipinos and 497 foreigners allegedly victims of human trafficking.
Fernandes pointed out that the involved POGO, Zun Yuan Technology Inc, was a temporally license holder and not an already approved operator, with its license terminated immediately.
“We have close cooperation with the police forces and the military. We want them to be involved in this cleansing process. We know the system now is not perfect and will not be perfect but we are confident it will get much better in the coming year,”
