Philippines Primed to Become a Premier Online Gambling Destination

The Philippines is a surprising new contender for the best gambling regulator title. With a robust and proactive regulatory agency, deep integration with multiplier government agencies, a tough stance on illegal bonus offers, and a newly narrowed focus, the region is proving to be a noteworthy participant in the global regulation race.

Alejandro H. Tengco, Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR), shared his thoughts on the Philippines becoming a premier gambling market, saying:

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“I know much still needs to be done, but I believe that we are on the right track towards making the Philippines a prime gaming destination in the ASEAN region.”

Speaking at the G2E Asian IR Summit in Macau on July 13, 2023, Tengco explained how the agency had pushed the country towards this lofty goal in the past year.

 Money Answers All Things

PAGCOR has gained the attention of the Filipino government through one simple act – adding value to the National Treasury. As simplistic as this sounds, the country needs funds to follow through on a wide variety of community-facing projects, and the revenues generated by the casino sector have proven invaluable in this regard.

Focusing on its mandate to ensure that gambling in the region was managed ethically and adequately accounted for, PAGCOR increased its 2022 revenues by 66.16%. This increased from P35.48 billion in total income for 2021 to an astounding P58.96 billion in 2022.

The net income figure is even more impressive, leaping 2000% from P203.57 million in 2021 to P4.45 billion by the end of the 2022 financial year!

 Newly Defined Regulatory Focus

Having proven the value of the gaming sector in uplifting the Philippines, a lot of attention was given to determining where the members of PAGCOR should focus their energies. The decision was taken to narrow the agency's focus to regulatory oversight, which meant stepping away from its duties as a state-run operator.

Tengco addressed this point by saying:

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“By focusing on its regulatory functions, PAGCOR will be able to avoid the complexities of running two different shows. It can also streamline its processes and create more revenues that will fund more high-impact government projects.”

The Board of Directors has been working to privatise the gambling venues currently managed by PAGCOR, which means enhancing the facilities with new telecommunication and IT infrastructures, upgrading more than 3,000 electronic casino games, and launching Casino Filipino Online.

In parallel, they have also been working on a systematic program of refinements to strengthen the agency's regulatory authority.

Illegal Gambling Comes Under Fire

The foundation of any regulated market is channelisation. To encourage players to sign up at casinos with local licenses, it is imperative that you make unlicensed gambling as unappealing as possible to predatory operators.

Commenting on this aspect of the industry, Tengco said:

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“We shall undertake this painstaking process to weed out the unscrupulous companies and individuals using the PAGCOR license for illegal activities, tainting the name of the whole industry and most especially the Philippines.”

PAGCOR is an incredibly advanced agency despite its recency, especially in inter-department cooperation. The gambling regulator is known to work closely with law enforcement agencies to stamp out crime syndicates, money laundering operations, and other forms of corruption to ensure a safe and secure gambling market for licensees and Filipino players.

When it comes to the results of their efforts, one must agree with the numbers. Industry experts predict that the online gambling sector will generate P24 billion by the end of 2023, double 2022s P11 billion.

 Opening New Online Gambling Channels

With its singular focus, PAGCOR is now driving the addition of new online gambling verticals to expand the local market and make it more appealing to a wide variety of gambling businesses.

The Filipino market is now open to international offshore license holders looking to offer virtual bingo, online casino games, sports betting, and virtual billiards for real money. The regulator believes this adds depth to the industry and promotes channelisation by offering players more variety in the games they can enjoy.

It has also allowed licensed land-based venues to offer live casino games to their registered customers online for the first time as part of their current gambling license. A first for the market.