PAGCOR officials remarked that reduced licensing fees and stricter probity checks are aiding in the eradication of criminal elements previously associated with Philippine offshore gaming operators (POGOs).
During the 6th ASEAN Gaming Summit, various Philippine public officials overseeing gaming operations, including Gilbert Remulla from the PAGCOR Board of Directors and Jessa Fernandez from the Offshore Gaming Licensing Department, convened to discuss recent developments.
Remulla emphasized that the newly implemented lower license fees, set at an average of 35 percent starting from April 1, are encouraging illegal operators to legitimize their activities. He stated that with these reduced fees, profits for such operators would be comparable to those from underground operations.
Additionally, Fernandez highlighted the tighter regulations for probity checks in the licensing process, aimed at ensuring applicants have no criminal affiliations or political compromises. She mentioned a significant overhaul in 2023 and ongoing vetting of applicants based on the new framework.
As part of a comprehensive crackdown on illegal activities associated with offshore gaming, PAGCOR introduced a new regulatory framework last year, placing all POGO licensees on probation until they meet new licensing requirements. Existing licensees were required to re-apply by September 17, 2023, amid changes in capital requirements and taxes.
According to PAGCOR’s legal advisor, there were 49 internet gaming licensees under the previous framework, compared to over 200 previously licensed providers, with only 21 remaining.
While efforts are underway to vet applicants thoroughly, including a temporary suspension of new applications, there have been recent instances of illegal operations evading detection. One such incident was a police raid on a POGO in Bamban town, Tarlac province, which led to the rescue of numerous victims of human trafficking. The involved POGO, Zun Yuan Technology Inc, had its license terminated immediately.
Officials stressed the importance of cooperation with law enforcement agencies in the cleansing process, acknowledging that while the system is not perfect, improvements are expected in the coming year.
Unlicensed operators have always been the bane in the online gaming industry. Many players fall to their scam and lose money in the process. It is always important to know that you are playing in a PAGCOR licensed operator’s site. OGP always have an updated list of Online Gaming websites licensed by PAGCOR.