PAGCOR has seen a sharp rise in inquiries related to online gaming licensing following the country’s recent removal from the FATF grey list.
The Philippine Amusement and Gaming Corporation (PAGCOR) has observed a sharp rise in inquiries related to online gaming licensing following the country’s recent removal from the Financial Action Task Force (FATF) grey list.
According to PAGCOR chairman and CEO Alejandro Tengco, the decision to prohibit offshore online gaming providers, previously known as Philippine Offshore Gaming Operators (POGOs), played a crucial role in securing the country’s removal from the FATF grey list.
Speaking at the ASEAN Gaming Summit held at Shangri-La The Fort in Manila, Tengco highlighted that the ban was a key demonstration of the Philippines’ commitment to combating money laundering and maintaining financial system integrity.
The FATF grey list identifies jurisdictions subject to increased monitoring due to concerns related to financial integrity and anti-money laundering efforts. The Philippines had remained on this list for three years before its removal last month.
Following the announcement, interest in obtaining online gaming licenses surged, with PAGCOR receiving a high volume of calls from prospective applicants seeking information on the licensing process and requesting copies of regulatory guidelines.
This is despite calls for a complete online gambling ban in the country.
While the ban on offshore gaming operators presented regulatory challenges, it also provided opportunities for PAGCOR. The agency facilitated the systematic closure of POGO operations while implementing measures to minimize potential economic disruptions.
As part of this transition, PAGCOR pushed for the continued operation of special class business process outsourcing (BPO) firms, which do not engage in gaming but provide essential backend support services.
Following the country’s removal from the grey list, the number of applications for special class BPO licenses increased significantly.
Philippine gaming industry sees strong growth
The Philippine gaming sector, including non-casino operations, continued its strong performance in 2024.
Preliminary figures indicate that gross gaming revenue (GGR) reached approximately $7.16 billion, reflecting an increase of nearly 25% compared to the previous year.
Although land-based casinos accounted for almost half of the total GGR, the eGames and eBingo segments demonstrated substantial growth.
PAGCOR has acknowledged the increasing influence of technology in the gaming industry and has emphasised its commitment to regulating electronic gaming while maintaining stringent oversight to prevent unauthorised operations.
To further support industry growth, PAGCOR reduced remittance rates for online and on-site betting platforms in January. The rate was lowered from 35% to 30%, a move aimed at enhancing the sector’s sustainability and competitiveness.
As part of its regulatory initiatives, PAGCOR is strengthening responsible gaming measures to address the expansion of the industry.
The agency plans to implement new requirements mandating that licensed operators allocate a portion of their GGR to projects supporting national development.
These measures are intended to foster long-term improvements within the Philippine gaming landscape while ensuring financial and social responsibility.
Efforts to dismantle POGO operations remain ongoing, as well.
The Criminal Investigation and Detection Group of the Philippine National Police in Metro Manila has established specialised tracker teams to work alongside other agencies in locating and pursuing POGOs across the country.