BRIEF HISTORY NG POGO - PAGCOR PRESENTATION | EX SEKYU

Summary

This video script provides an in-depth look into the Philippine Offshore Gaming Operators (POGO) industry, covering its history, regulation, and the challenges it faces, particularly in tackling illegal online gambling. The presentation details the evolution of POGO licensing under PAGCOR, revenue trends, and the rising penalties for non-compliance. It also highlights the growing threat of illegal casinos operating through social media and the need for stricter enforcement. Moving forward, PAGCOR plans to enhance monitoring, raise penalties, and strengthen cooperation with law enforcement and other agencies to combat illegal operations and protect both players and employees in the industry.

Takeaways

• 😀 Offshore gaming (Pogos) has been regulated in the Philippines since 2016, with PAGCOR overseeing its operations.
• 😀 Executive Order No. 13, issued in 2017, formalized the regulation of online gaming, including licensing and operational standards.
• 😀 A tax regime for offshore gaming providers was introduced in 2021, adding financial oversight to the industry.
• 😀 The number of POGO licenses has decreased from 298 in 2019 to just 87 in 2023, yet PAGCOR still exceeded its financial targets.
• 😀 PAGCOR's revenues from offshore gaming in 2023 reached PHP 5.17 billion, surpassing its 4.2 billion target despite fewer licenses.
• 😀 Strict regulations are now in place to limit service providers per license, ensuring more control over operations and compliance.
• 😀 PAGCOR has imposed nearly USD 4 million in fines and penalties between 2020 and 2024 for regulatory violations in offshore gaming.
• 😀 Compliance issues, including improper documentation and unlicensed applications, remain common violations in the sector.
• 😀 Illegal online casinos, often using counterfeit PAGCOR logos and promoted on social media, continue to proliferate despite regulatory efforts.
• 😀 PAGCOR plans to enhance its monitoring capabilities with 24/7 surveillance, and impose higher fines for violations moving forward.
• 😀 Future efforts will focus on strengthening cooperation with law enforcement and other government agencies to combat illegal gaming activities.

Q & A

What is the history of offshore gaming in the Philippines?

Offshore gaming in the Philippines has existed since 2003. However, it was formalized in 2016 under PAGCOR through the issuance of rules and regulations for Philippine Offshore Gaming Operators (POGO).

What are the key regulations that govern Philippine offshore gaming operations?

The key regulations include the Offshore Gaming Regulatory Manual issued by PAGCOR, the issuance of gaming licenses, and the introduction of Republic Act taxing offshore gaming operations. These regulations aim to ensure legal and safe operations while curbing illegal gaming activities.

How did the revenue from POGOs change over the years?

POGO revenue peaked in 2019 with 298 licenses and service providers generating 7.9 billion pesos. However, the number of licenses declined in subsequent years, and revenue decreased to 2.99 billion pesos in 2022. Despite fewer providers, stricter regulations in 2022 led to exceeding the target of 2.1 billion pesos.

What actions have been taken to combat illegal offshore gaming operations?

To combat illegal operations, PAGCOR has increased its monitoring efforts, including reporting nearly 7,000 illegal websites to the National Telecommunications Commission. The agency has also implemented stronger penalties, and collaborates with law enforcement agencies to shut down unlicensed operators.

What are the main violations reported in offshore gaming operations?

Common violations include improper use of mobile phones, failure to present employee identification or passports, and failure to comply with regulatory requirements for gaming operations, such as operating without the necessary licenses or engaging in fraudulent activities.

How has the number of employees in the offshore gaming industry evolved?

As of June 2024, there are 3,367 Filipino employees in offshore gaming operations, with 35,447 total employees in the industry. Additionally, 90% of the workforce in Special Class BPOs must be Filipino nationals, ensuring local job creation.

What are the plans for stricter enforcement of offshore gaming regulations in the future?

Future plans include the introduction of 24/7 monitoring of all operating sites, the removal of hubs, stricter penalties for violators, and enhanced collaboration with law enforcement and government agencies like the Department of Labor and Employment and the Bureau of Immigration to ensure compliance.

How does PAGCOR handle the licensing of service providers in offshore gaming?

POGO licenses are issued to Business-to-Consumer (B2C) entities that provide online gaming services to players outside of the Philippines. Service providers are limited to two per license, and these providers must be approved by PAGCOR. Additionally, game developers and content providers are also licensed but must comply with strict regulations.

What is the impact of illegal online casinos using PAGCOR's branding?

Illegal operators often use PAGCOR's logo to deceive players into believing they are licensed, which is a major concern for the regulatory body. These unlicensed platforms offer no player protection, do not contribute to the country's gaming revenue, and can expose players to fraud and other risks.

What are the projected revenues for POGO in 2024?

Despite the reduction in licenses and providers, PAGCOR is still expecting to generate around 7 billion pesos in 2024. This revenue is expected due to the new regulatory framework, improved fee structures, and stronger enforcement measures.