The Rise of Online Gaming Licenses in the Philippines
Introduction to PAGCOR’s Licensing Landscape
In recent years, the Philippine Amusement and Gaming Corporation (PAGCOR) has undergone a significant transformation in its approach to online gaming. Once known for issuing licenses to Philippine Offshore Gaming Operators (POGOs), PAGCOR has rebranded these entities as Internet Gaming Licensees (IGLs). This shift reflects a broader trend in the gaming industry, where online platforms are becoming increasingly popular among Filipino netizens. As of now, PAGCOR has issued over 40 licenses to IGLs, alongside more than 40 additional licenses for online gaming operators focused on electronic gambling.
The Expansion of Electronic Gaming Licenses
PAGCOR’s Electronic Gaming Licensing Department has recently released a list of accredited gaming system service providers, which has grown to include 34 operators as of June 5. These providers are authorized to offer a diverse range of online betting games, including e-casino, e-bingo, sports betting, and specialty games. However, it is noteworthy that 13 of these licensees have yet to commence commercial operations, indicating a potential future growth area in the online gaming sector.
In addition to the 34 e-gaming licensees, PAGCOR has also recognized 10 “authorized online/remote gaming platform” operators. These operators differ from the gaming system service providers and primarily consist of online casinos affiliated with major integrated resort casino operators in the Philippines. Notable names in this category include Bloomberry Resorts, Travellers International, and Tiger Resort Leisure and Entertainment, among others.
The Role of Major Casino Operators
The landscape of authorized online gaming platform operators is dominated by well-established casino brands. For instance, Bloomberry Resorts operates the renowned Solaire Resort and Casino, while Travellers International manages the Newport Resorts World Manila. Other significant players include Stotsenberg Leisure Park and Hotel Corp. and Thunderbird Pilipinas Hotels & Resorts Inc., both of which have made substantial investments in the gaming and hospitality sectors.
Interestingly, the only non-casino operator on the list is AB Leisure Exponent Inc., which runs the Bingo Plus parlor chain. This diversification highlights the growing interest in online gaming beyond traditional casino environments, catering to a broader audience.
The Social Impact of Online Gambling
Despite the economic potential of online gaming, the proliferation of these platforms has sparked concerns, particularly among Filipino families. Social media platforms like TikTok have become a space for married Filipina women to share their experiences of discovering their husbands’ gambling addictions, often leading to significant financial distress. This trend has raised alarms about the potential social ramifications of expanding online gambling access.
Local research firm Capstone-Intel Corp. has voiced concerns regarding the issuance of additional licenses for online gaming operators. CEO Nicasio Conti has urged PAGCOR to carefully evaluate the negative impacts of gambling before proceeding with further licensing. He emphasizes that gambling addiction can lead to severe personal and familial consequences, echoing sentiments shared by many in the community.
Lessons from Global Experiences
Conti draws parallels between the Philippines and other countries that have faced similar challenges with gambling. He cites examples from Singapore and Japan, where strict regulations are in place to mitigate the social costs associated with gambling. In Singapore, despite the presence of major casinos, the government remains cautious about expanding gambling opportunities due to the potential for increased crime rates and public health challenges. Japan, while allowing certain forms of gambling like pachinko, prohibits most others to maintain social stability.
In the United States, states like Nevada and New Jersey illustrate the duality of gambling’s impact, where economic benefits are often overshadowed by addiction and related crimes. Australia and the United Kingdom have also faced rising gambling problems, prompting stricter regulations and enhanced support services for those affected.
Economic Contributions of Online Gaming
PAGCOR has reported that offshore gaming operations contributed P3.15 billion, or 4.31 percent, to their total gaming revenues of P79.37 billion last year. This figure comes in the context of a record gross gaming revenue of P285.27 billion, surpassing pre-pandemic levels. While the economic benefits of online gaming are evident, the ongoing debate about its social implications continues to shape the regulatory landscape.
As the Philippines navigates the complexities of online gaming, the balance between economic growth and social responsibility remains a critical consideration for PAGCOR and the broader community. The evolving landscape of online gaming in the Philippines is a reflection of global trends, and the lessons learned from other countries will undoubtedly influence future regulatory decisions.