New Policies Aim to Regulate Online Gaming in the Philippines

by Frank McDougall
in Action, News
on 12 June 2024

The Philippine Amusement and Gaming Corporation (PAGCOR) has announced new policies aimed at regulating the country’s online gaming industry. The move comes amid calls to ban Philippine Offshore Gaming Operators (POGOs) entirely. PAGCOR chairman and CEO Alejandro Tengco states that outlawing Internet Gaming Licensees (IGLs), formerly known as POGOs, could have unintended consequences.

Tengco argues that banning IGLs would push legitimate operators underground, making it harder for the government to monitor their activities. He also warns that illegal operators would flourish, leading to a bigger headache for law enforcement authorities. Furthermore, such a ban would result in the loss of potential annual revenues of more than P20 billion.

While there have been concerns about the involvement of some POGOs in criminal activities, Tengco believes that outlawing all IGLs is not the solution. Instead, he proposes stricter regulations to differentiate between legitimate operators and those involved in illegal activities.

To address the issue, PAGCOR has already taken action to crack down on illegal operators. The number of overseas gaming licensees has significantly decreased from 298 POGOs in 2023 to just 46 IGLs. Out of the remaining 46 IGLs, three have been suspended, leaving a total of 43 active licenses.

Tengco emphasizes that the main problem lies with criminal syndicates posing as POGOs. He urges the cooperation of all sectors and intensified law enforcement to combat such criminal activities. Ultimately, he acknowledges that the decision to outlaw IGLs rests with Congress, and PAGCOR will respect whatever action they choose to take.

In conclusion, the aim of the new policies introduced by PAGCOR is to regulate the online gaming industry in the Philippines. While there are concerns regarding the involvement of some operators in criminal activities, a complete ban on IGLs is seen as potentially causing more harm than good. The government and law enforcement authorities will need to work together to address the issue of illegal online gaming while allowing legitimate operators to continue their activities under stricter regulations.

Additional facts and information:
1. Online gaming in the Philippines has seen a significant growth in recent years, with the industry contributing to job creation and economic development.
2. The Philippines has become a popular destination for online gaming operators due to its relatively lower costs compared to other countries.
3. Some critics argue that the influx of online gaming operators has led to an increase in social issues, such as gambling addiction and money laundering.
4. The government has been working on regulating the online gaming industry since 2016, with PAGCOR being the main regulator in charge.
5. PAGCOR has implemented measures to ensure that online gaming operators comply with the rules and regulations, including enforcing strict monitoring and auditing procedures.
6. Controversies surrounding online gaming in the Philippines have also raised concerns about the impact on the country’s image as a tourism destination.
7. The involvement of Chinese nationals in the online gaming industry has also been a point of contention, with some alleging that it has led to the influx of illegal workers and potential national security risks.

Important Questions and Answers:
Q: What are the key challenges associated with regulating the online gaming industry in the Philippines?
A: Some of the key challenges include distinguishing between legitimate operators and those engaged in illegal activities, addressing social issues related to gambling addiction, preventing money laundering, and managing the influx of foreign workers.

Q: What are the advantages of regulating the online gaming industry?
A: Regulating the industry can generate substantial revenue for the government, create job opportunities, and ensure that operators adhere to compliance measures. It can also help protect consumers by providing a safer environment for online gaming.

Q: What are the disadvantages of regulating the online gaming industry?
A: There is a risk of increased illegal activities if regulations are not effectively enforced. The social consequences associated with gambling addiction and potential negative impacts on the country’s image are also concerns.

Key Challenges and Controversies:
1. Differentiating between legitimate operators and those involved in illegal activities is a challenge due to the complex nature of the online gaming industry.
2. Ensuring compliance with regulations and preventing money laundering remain significant challenges.
3. Balancing the economic benefits of the industry with the potential social consequences, such as gambling addiction, is a contentious issue.
4. The involvement of foreign workers, particularly Chinese nationals, has sparked concerns about illegal labor practices and potential national security risks.

Advantages:
1. Regulation can generate substantial revenue for the government, contributing to economic growth.
2. Job creation and employment opportunities can arise from a regulated online gaming industry.
3. Implementing regulations can protect consumers by providing a safer and more transparent environment for online gaming.

Disadvantages:
1. There is a risk of increased illegal activities and the growth of unregulated operators if regulations are not effectively enforced.
2. The social consequences of gambling addiction and potential negative impacts on tourism and the country’s image are concerns.
3. The influx of foreign workers, particularly from China, has raised issues of illegal labor practices and potential national security risks.