THE Philippine Amusement and Gaming Corp. (Pagcor) has reported that it is conducting a crackdown on online gaming firms operating without a license in the country and those found to be violating the agency’s Offshore Gaming Regulatory Manual.
Pagcor Chairman and CEO Andrea D. Domingo said in a statement that the agency is in cooperation with various law-enforcement offices to identify illegal online gaming operators and that investigations and raids are regularly undertaken by the agency in line with this.
The agency reported that, beginning January last year and the first semester of 2018, it raided over 170 establishments that Pagcor found to be operating without licenses. Those found guilty operating without a gaming license will either face charges in court or be deported.
“Word of advice, therefore, legalize your operations or face dire consequences.” Domingo said.
Pagcor said it entered into a “mutual cooperation” agreement with the National Bureau of Investigation, the Philippine National Police and the Bureau of Immigration for a concerted drive against illegal online gambling.
Aside from raids, Pagcor said it is also regularly monitoring and auditing the operation of Philippine Online Gaming Operation licensees. This is to ensure these Pogos remit to the government proper revenue share and that they adhere to all municipal, national and labor laws, according to Domingo.
She added that its third-party audit platform will soon be fully functional, which will strengthen revenue collection and ensure fairness in the operations of Pogo licensees.
The audit platform would ensure that Pogo licensees operate according to the regulatory framework. The platform is also expected to ensure that only licensed and approved casino-based gaming platforms are offered to players and that betting on prohibited platforms like collegiate games, illegal cockfights and prices of traded stocks are not undertaken by licensees.
Through its Compliance Monitoring and Enforcement Department, Pagcor ensures that Pogo licensees operate within the bounds and limits of their offshore gaming licenses and mandates the department to monitor and report possible violations on labor, immigration and other pertinent laws, such as poor working conditions, exploitation of employees and employment of minors or undocumented foreign nationals.
In March Pagcor reported that revenues from Pogo will likely reach P6 billion after the rollout of its third-party audit system.
Domingo said a third-party audit system, which monitors the operations of the 53 Pogo, will enable Pagcor to track the revenues generated in real time by Pogos.
Revenues from Pogo last year reached P3.9 billion, and Pagcor expects to double the revenues this year.
License fees charged to each Pogo operator amount to $200,000, while the application and processing fees cost $15,000. On top of the fees, Pagcor requires operators to put $250,000 cash fund just in case they can’t pay bets that win.
Jose S. Tria Jr., Pagcor special assistant to the gaming regulator chairman and CEO, said the audit platform will also help boost the number of applications received by the Pagcor for online gaming operations.
Tria said an estimated P3 billion in taxes can be collected through the issuance of the Pogo alone.