PAGCOR issues 40 licences to Internet Gaming Licensees??

Jenny Ortiz May 20, 2024

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PAGCOR issues 40 licences to Internet Gaming Licensees??

The Philippine Amusement and Gaming Corp. (PAGCOR), the state gaming regulator and operator, has issued 40 licences to rebranded offshore gaming operators, now termed as Internet Gaming Licensees (IGL).

According to a report of philstar.com, PAGCOR has granted nine provisional licences to these operators. This rebranding marks a shift from the previously used term “Philippine Offshore Gaming Operators” (POGOs).

Implementation of revised regulations?

This move follows the implementation of the “Internet Gaming Licensing Regulations” which took effect on July 12, 2023. These regulations require all POGOs to reapply for licences under the new framework to ensure compliance with updated standards. The revision aims to address persistent controversies and regulatory challenges associated with the previous POGO framework, particularly regarding the hiring practices of foreign workers.

Rebranding announcement and context?

The rebranding was officially announced in October 2023 by PAGCOR chairman and CEO Alejandro Tengco. The new term, Internet Gaming Licensees, reflects PAGCOR’s efforts to modernize and streamline the regulation of offshore gaming operations.

Economic impact and revenue contributions?

Despite the controversies, offshore gaming operations remain a significant part of the Philippine gaming industry. In 2023, these operations generated Php3.15 billion (€50 million), accounting for 4.31 percent of PAGCOR’s total gaming revenues of Php79.37 billion (€1.26 billion). The industry achieved record gross gaming revenues of P285.27 billion in 2023 (€4.5 billion), surpassing pre-pandemic levels, according to PAGCOR.

Licences and prospects??

The agency’s issuance of 40 licences to rebranded Internet Gaming Licensees represents a significant regulatory update aimed at improving the governance of offshore gaming operators. With the implementation of revised regulations and the rebranding initiative, PAGCOR is poised to enhance the integrity and profitability of the Philippine gaming industry.

Last month, PAGCOR said it has recorded a significant surge in its first-quarter income for 2024, reaching?PHP25.24 billion (€401million), marking a 42.57 percent increase compared to the same period last year.? ?