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- In 2016, PAGCOR issued rules and regulations covering the operations of POGOs. A POGO refers to an entity that offers and participates in offshore gaming services by providing games to players, taking bets, and paying the winning players. The gaming activity refers to online games of chance through the internet, using a network and software, exclusively for offshore-authorized players who have registered.
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In the Philippines, PAGCOR is the main office assigned to regulate gambling and the participation of Filipino players. If you are from the Philippines, you are allowed to play at casinos, e Games PAGCOR sites, and hotels provided that are licensed and approved by PAGCOR.
Corruption watchdog Anti-Trapo Movement (ATM) on Monday filed a petition before the Supreme Court (SC) seeking to stop the Philippine Amusement and Gaming Corporation (PAGCOR) from further issuing online gaming licenses.
In its petition for prohibition with prayer for injunction, the ATM through its chair Leon Parelta said there is a need for the SC to issue an injunction against the state-owned gaming agency represented by its chair Andrea Domingo to stop its continued issuance of the Philippine Online Gaming Operators (POGO) licenses to operators of online gaming in the country.
The petitioner said Pagcor's continued acceptance, processing and issuance of such licenses is violative of the provisions of Executive Order No. 13 issued by President Rodrigo Duterte which specifically defined and clarified the individual authorities granted under the laws by which it was created to each government agency.
'PAGCOR's continued acceptance, processing and issuance of POGO (Philippine Online Gaming Operators) licenses, as declared by PAGCOR Chair Andrea Domingo is violative of the provisions under EO 13, which specifically defined and clarified the individual authorities granted under the laws by which it was created to each government agency,' the petition stated.
In its petition, the group said there is no provision in the PAGCOR's Charter (Republic Act 9847) stating that it is expressly authorized to issue such licenses, adding that the high court has made such ruling in two previous cases — Del Mar vs. PAGCOR and Jaworski vs PAGCOR.
ATM noted that similar to Jai Alai and its grant of Operation of Sports Betting and Internet Gaming, which the SC earlier ruled that it has no authority to do so, PAGCOR should also be stopped from allowing online gaming operations.
It added that PAGCOR should also be held in contempt in for violating the Court rulings on Jai Alai and on Operation of Sports Betting and Internet Gaming.
The EO orders the Philippine National Police, National Bureau of Investigation, Department of Justice, Department of the Interior and Local Government, and the Department of Information and Communications Technology to work together and intensify their efforts in curbing illegal gambling.
Aside from recognizing the authority of the PAGCOR to operate and license gambling casinos, the order recognized freeport zones APECO, Cagayan Economic Zone Authority (CEZA), and Authority of the Freeport Area of Bataan (AFAB) as authorized to operate gambling facilities or give license to operators.
President Duterte issued the order in the wake of the arrest of more than 1,300 Chinese nationals working in an illegal online gaming casino in Clark, Pampanga owned by Chinese gaming tycoon Jack Lam and the alleged PHP50 million extortion case by two former Bureau of Immigration executives for the release of the arrested Chinese workers.
Section 3 of the EO clarified that in the case of online gambling, licensed online gambling operators are prohibited from letting persons 'physically located outside the territorial jurisdiction' of the licensing authorities like PAGCOR and the freeport zones to participate in the games, whether through an online portal or similar means. (PNA)
The Philippines' gambling regulatory body, the Philippine Amusement and Gaming Corporation (PAGCOR), has announced its intent to issue a new round of Philippine Offshore Gaming Operator (POGO) licenses. These licensees are designated specifically for online gambling operators and their services are required to serve an exclusively international clientele. Meaning, Philippines residents are prohibited from taking advantage of these operators' services.
As many as 78 applications have been submitted for the new round of license issuing, but Andrea Domingo, Chair of PAGCOR, asserts that not all applicants will be granted a license to operate. Applicants are each putting up application and processing fees of $50,000 or $40,000 for either casino or sports betting operations, respectively. Should their applications be accepted, casino operators will have to pay an additional $200,000, while sportbooks will have to put up $150,000.
In a news conference held on the ASEAN Gaming Summit's opening day, Domingo told reporters that the new round of licenses comes as an effort to meet PAGCOR's 2017 revenue target of PHP60 billion, stating that 'The POGOs are meant to safeguard the welfare of the Filipinos at the same time meet the agency's revenue targets to help fund the government's nation-building programs.'
Opposition
Last week an anti-corruption group, the Anti-Trapo Movement (ATM), had requested that the country's Supreme Court put a stop to PAGCOR's intended plans for doling out additional gaming licenses.
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The group argues that the organization has no authority to regulate online gaming, as detailed by its own charter. ATM also argued that the efforts on the part of PAGCOR violate the Executive Order 13, a decree from the highest office in the country that was intended to combat illegal gambling operations.
The group said, 'PAGCOR's continued acceptance, processing, and issuance of POGO licenses, is violative of the provisions under EO 13, which specifically defined and clarified the individual authorities granted under the laws which it was created to each government agency.'
ATM has gone so far as to recommend the Supreme Court revoke all current licenses that PAGCOR has issued to operators.
Last December, a second petition was submitted to the high court regarding PAGCOR's licensing procedures by the Union for National Development and Good Governance-Philippines.
Plans for Expansion
While the online gambling landscape remains a contentious one for regulators and anti-corruption groups, land-based gaming is getting its fair share of attention.
Cebu is one such destination that PAGCOR is eyeing as a potential location of major gaming investment. The island getaway could soon be the site of a $500 million casino and resort property. Mundaue Island has also been proposed as the site for a smaller $300 million integrated property. The two projects are the first of their kind to be considered outside the capital. Manila currently operates four such venues, with a fifth expected to be open for business by 2018.
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Chairman Domingo cited Cebu as a great site for the next resort due to its preferred locality and proximity to essential services. She raised many valid points in a recent press briefing, concluding that 'Cebu is the second largest metropolis in our country,' and adding that, 'there are cities there near the airport where the local governments welcome casinos.'
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