The online gambling industry remains strong in the Philippines despite the recent POGO license ban in 2024. With offshore gambling banned, the Philippine Amusement and Gaming Corporation (PAGCOR) now focuses on regulating domestic online platforms for Filipino players. Read more to learn what PAGCOR is and how to start a legitimate online gambling business with a license.
What is PAGCOR?
PAGCOR, established in 1976 under Presidential Decree No. 1869, is a government-owned corporation that regulates and operates gambling in the Philippines. It oversees casinos, lotteries, and online platforms while generating revenue for national development.
- Role: Regulates and licenses domestic online gambling, such as e-Games and e-Bingo, for Filipinos.
- Reputation: Known for strict standards, ensuring fair and secure gaming.
- Focus: Now only targets Filipino players through regulated platforms, following the 2024 ban on offshore gambling.
POGO Ban: What it Means for PAGCOR and Online Gambling
In July 2024, President Ferdinand Marcos Jr. announced a ban on Philippine Offshore Gaming Operators (POGOs), later renamed Internet Gaming Licensees (IGLs), culminating in their complete cessation by December 31, 2024, under Executive Order No. 74.
This ban prohibits online gambling operations targeting international markets, previously a significant sector for PAGCOR-licensed businesses. For online gambling enterprises, this means a shift to domestic platforms like e-Games and e-Bingo, which cater exclusively to Filipino players under strict PAGCOR regulations. Corporations can still obtain licenses, but must focus on the local market.
Why You Still Need a PAGCOR License
Even with the 2024 ban on offshore gambling, a PAGCOR license remains a requirement for running a legal gambling business in the Philippines. Here is why you should still obtain a license:
- Legal Compliance: Adheres to Philippine gambling laws, protecting your business from fines, closure, or legal penalties.
- Player Confidence: Assures Filipino players that your platform, such as e-Games or e-Bingo, is secure, fair, and regulated.
- Market Reputation: Strengthens your credibility in the Philippines’ tightly controlled domestic gambling industry.
- Access to PAGCOR Support: Provides direct support and guidance from PAGCOR’s regulatory framework, ensuring smooth operations and compliance with evolving industry standards.
Legal Requirements to Apply for a PAGCOR License
It’s important to note that PAGCOR offers different types of licenses, and businesses need to apply for the correct ones based on the specific games or services they intend to run. For instance, PAGCOR grants licenses for the following:
- Traditional Bingo Games
- Electronic Bingo (E-Bingo) Games
- Electronic (eCasino) Games
- Sports Betting
- Specialty Games
- Online Poker Games
- Numeric Games
- Other suite of games that may be allowed by PAGCOR in the future
Although the exact requirements depend on the type of license, you will generally need:
- Letter of intent addressed to the Chairman and CEO of PAGCOR
- Duly accomplished and notarized application form
- Securities and Exchange Commission (SEC) Registration or its foreign equivalent
- Articles of Incorporation (AOI) and By-Laws duly stamped and received by the SEC
- To qualify, a company’s articles of incorporation and bylaws must list gaming as a primary business purpose (or have a board resolution if it’s secondary).
- It must meet the required amount of authorized capital stock and paid-up capital.
- Under the Foreign Investment Negative List, foreign ownership in gambling is capped at 40%, unless covered by a specific investment agreement with PAGCOR.
- Latest General Information Sheet (GIS) with beneficial ownership declaration page or its foreign equivalent
- Company overview and profile
- An organizational chart indicating the names of persons occupying the positions
- Business profile detailing the company’s business model, plan, and projections
- Money Laundering and Terrorist Financing Prevention Plan (MTPP);
- Duly accomplished and notarized Personal Disclosure Sheet (PDS) (OGLD Form No. 1050) of authorized representative and key officers of the corporation
- Board Resolution or Secretary’s Certificate appointing Authorized Representative
- Declaration of Security Compliance Officer
- BIR Certificate of Registration
- Result of the evaluation issued by an accredited probity checker of the OGLD
- Proof of payment of the Application Fee
- Additional documents, depending on your business status and operations
The PAGCOR Licensing Process: A Step-by-Step Guide
To obtain a license and begin business operations, follow these steps:
- Step 1: Register Your Business
Secure your corporate registration in the Philippines. - Step 2: Prepare Documentation
Find out which PAGCOR licenses you need on PAGCOR’s official website. Gather SEC registration papers, financial records, business plan targeting Filipinos, and other requirements for each. - Step 3: Submit Application
File your application with PAGCOR’s Electronic Gaming Licensing Department and pay the non-refundable fee. - Step 4: Undergo Background Checks
PAGCOR reviews your company and key officers for any criminal or financial red flags. - Step 5: Technical Audit
Your software, RNGs, and security systems are tested for fairness and compliance. - Step 6: Full License Approval
Pay licensing fees, establish a local office, and secure PAGCOR approval.
After approval, operators must submit regular reports and undergo audits to remain compliant.
Key Compliance Standards for PAGCOR-Licensed Operators
PAGCOR enforces strict standards to ensure safe and fair gaming for Filipinos. Operators must prioritize security, transparency, and responsible gambling.
- Cybersecurity: Implement encryption and secure payment gateways to protect player data.
- Responsible Gambling: Offer deposit limits, self-exclusion tools, and age verification.
- Transparency: Provide clear terms, fair payout policies, and prompt dispute resolution.
Regular audits by PAGCOR or third parties ensure ongoing adherence, with non-compliance risking fines or license revocation.
Final Thoughts
With offshore gambling banned, PAGCOR now focuses on domestic platforms like e-Games and e-Bingo, serving Filipino players. You can create a trusted platform by understanding PAGCOR’s role, meeting legal requirements, navigating the licensing process, and upholding compliance. Business Registration Philippines can assist you with your business registration and gathering all the PAGCOR licenses and permits you need to operate a legitimate gambling business.
Is this Your First Time Registering an Online Gambling Business?
Registering an online gambling business in the Philippines can be a complex and challenging process. With numerous PAGCOR licenses and permits to secure, it’s easy to miss a document or forget to renew it. Unfortunately, this can lead to costly fines or even force your operations to shut down.
Thankfully, the Business Registration Philippines team provides comprehensive support for your business registration, so you don’t have to stress over the paperwork.
Contact us today to schedule an initial consultation with one of our experts:
- Contact Us Here
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- Call us at +63 (02) 8540-9623