Gaming Law 2024 Comparisons

PAGCOR Focuses on E-Gaming Growth

Since 2023, Philippine Amusement and Gaming Corporation (PAGCOR), the Philippines’ gaming regulator, has introduced significant developments in the online gaming (“e-gaming”) sector. The sector – which includes e-games, e-bingo, specialty games, numeric games and sports betting – contributed to the substantial increase in gross gaming revenues (GGR), reporting an increase of 464.38% from last year. Key developments include updated licensing requirements for operators and service providers, newly approved games, strengthened compliance standards and lowered tax rates. These measures underline PAGCOR’s strategic focus on the e-gaming sector as a critical component of the Philippines’ gaming industry, aiming to sustain growth while maintaining robust regulatory oversight. E-Gaming targets local (Philippine-based) players, and is different from offshore gaming (discussed below).

Offshore Gaming Operations and Related Businesses (to Offshore Gaming Operations) are Banned

The total ban on offshore gaming operators (online gaming exclusively offered to foreign or offshore players) (POGOs), was formalised through Executive Order (EO) No 74 issued by the Office of the President in November 2024. EO No 74 cited the sector’s association with criminal activities, including money laundering, human trafficking, and tax evasion, as well as its adverse impact on the country’s reputation and social stability. EO No 74 mandated the immediate cessation of all POGO operations by the end of 2024, revocation of existing POGO licences, and prohibition on the issuance of new ones.

Developments in Online/E-Gaming and Land-Based Casinos Driven by New Technology and Changing Tastes

PAGCOR is proactively embracing technological advancements and evolving consumer preferences to enhance gaming offerings and its regulatory framework. Key initiatives include:

• regulatory framework for remote gaming to allow land-based casinos to offer gaming services virtually or remotely;
• introduction of numeric games and specialty games as new categories;
• accreditation of gaming system service providers for e-gaming platforms;
• new orders for upgraded slot machines for land-based casinos to cater to modern tastes; and
• exploration of potential integration of cashless systems in land-based casinos propelled by the adoption of digital payment platforms like GCash, GrabPay, and Maya.

PAGCOR Intends to Cease its Operator Role, but Privatisation Delayed Until Early 2026

PAGCOR is a government-owned and government-controlled corporation created pursuant to its charter (“PAGCOR Charter”) to enable the Philippine government to regulate and centralise all games of chance authorised by law. The PAGCOR Charter includes the grant of a franchise to PAGCOR to operate and maintain casinos, clubs and other amusement places. This means PAGCOR is both the country’s primary gaming regulator as well as an operator of casinos.

Under the regime of PAGCOR chairman and CEO Alejandro Tengco, it committed to focusing more on its regulatory role. However, due to the need to amend its charter to cede its operator functions, the plan to privatise some 40 casinos operated by PAGCOR may be pushed back to early 2026.

Stringent Anti-Money Laundering Enforcement and Supervision Measures

PAGCOR and the Bangko Sentral ng Pilipinas (BSP) have imposed and implemented more stringent measures to address the action plan items to remove the Philippines from Financial Action Task Force (FATF) grey list. Since 2017, casinos, including internet and ship-based casinos, with respect to their casino cash transactions related to their gaming operations, were designated as covered persons under the Philippines’ Anti-Money Laundering Act (AMLA). PAGCOR has focused its regulatory oversight in implementing two action plan items: risk-based supervision and junket operational upheaval. PAGCOR’s president and COO Atty. Wilma Eisma has been tasked with personally overseeing its efforts to ensure the country is removed from a global anti-money laundering grey list as soon as possible.

New Land-Based Casinos Around the Country; Lower Licence Fees

While e-gaming is having its moment, land-based casinos and integrated resorts (IRs) are also experiencing growth in the gaming industry, particularly with new casinos and IRs opening outside the Entertainment City (the Las Vegas-like gaming and entertainment complex in Bay City, Manila). New casinos/IRs include Solaire Resort North (Quezon City), Nustar Resort and Casino (Cebu), Hann Reserve (Clark). Plans to develop new casinos in Boracay island, Las Pinas City, Manila and another one in Cebu have been announced.

Effective 1 January 2025, PAGCOR will cut licence fees being charged to land-based casinos to 30% (from 35%) and 25% for IRs that offer online gaming to their players.

Focus on Accreditation and Licensing of Service Providers, Suppliers and B2B

PAGCOR has announced its intention to streamline licensing and registration requirements for service providers, business-to-business (B2B) providers, and suppliers within the gaming industry. By extending its regulatory reach to include ancillary and supporting businesses, PAGCOR intends to close loopholes that could be exploited by unregistered or non-compliant entities. This initiative demonstrates PAGCOR’s proactive approach to fostering a well-regulated gaming environment that priorities consumer protection, promotes legitimate business practices, and supports the sustainable growth of the industry. These measures also reflect PAGCOR’s commitment to upholding the integrity of the gaming industry while addressing concerns over illegal operations and other associated risks.

Activities that fall under the definition of “gambling” are illegal, unless there is a law specifically allowing them.

Under the Revised Penal Code of the Philippines (“Revised Penal Code”) and special laws, gambling is defined as “any other game of scheme the result of which depends wholly or chiefly upon chance or hazard; or wherein wagers consisting of money, articles of value or representative of value are made; or in the exploitation or use of any other mechanical invention or contrivance to determine by chance the loser or winner of money or any object or representative of value”.

In 2017, Executive Order No 13 (“E.O. 13”) issued by then President Rodrigo Duterte expanded the definition of “illegal gambling” as “committed by any person who, in any manner, shall directly or indirectly take part in any game scheme, regardless of whether winning thereat is dependent upon skill or chance or both, wherein wagers consisting of money, articles of value or representative of value are at stake or made, when such game scheme is not authorized or licensed by the government agency duly empowered by law or its charter to licence or authorize the conduct of such games, or is conducted in a manner that violates the terms and conditions duly prescribed by the said government agency.”

By virtue of these definitions, any activity that has the elements of gambling and is not authorised by the relevant regulatory body is prohibited, and persons engaged in illegal gambling activities may be held criminally liable. Therefore, all persons and entities engaged in the business of gambling, together with their allied businesses, are required to be licensed or accredited (depending on their activities) with PAGCOR or, if they are located within an economic zone with special laws giving such economic zone licensing powers over gaming activities, such special economic zone.

For licences and authorisations issued by special economic zones such as the Cagayan Export Zone Authority (CEZA) and Aurora Pacific Economic Zone (APECO), licensees are allowed to conduct gambling activities only within the territorial jurisdiction of the relevant economic zone.

Lotteries

Fantasy sports and poker clubs

Fantasy sports betting (if it involves wagering or betting), if not licensed or regulated by PAGCOR, is considered illegal gambling.

PAGCOR recently issued new guidelines that govern poker operations and tournaments. Other than poker games offered as table games in land-based casinos, there are licensed gaming sites around the country offering poker games. PAGCOR has also issued rules and guidelines on conducting poker tournaments (either by onsite or offsite operators) or within IRs.

Social gaming is generally allowed, as long as such games do not fall under the definition of “gambling”.

Criminal laws require that all elements of a crime be present, so theoretically, all the elements of illegal gambling will need to be proven before a person is convicted of such violation. The conduct of social games is allowed provided that these are played merely as parlour games or for home entertainment, are not held in places habitually used for gambling and do not have betting disguised to defeat the intent of the law. Similarly, contests and games that do not involve any wagering or betting are not considered gambling, but depending on how these are conducted (and whether consumer rights are involved), these games and contests may be required to be registered with the Department of Trade and Industry.

Offshore Gaming Banned by Executive Order No 74

Executive Order No 74 was signed by the Philippine government to formalise a total ban on all offshore gaming operators in the country. This ban encompasses all categories, including licensed operators (POGOs), their representatives in the Philippines, and service providers that support offshore gaming operations. Offshore gaming refers to online gambling services provided by Philippine-based operators to customers located outside the country, involving activities like accepting bets and streaming live games over the internet. The Order aims to eliminate all forms of offshore gaming activities within the Philippines, regardless of where they are organised or licensed.

Land-based Casinos

A land-based casino licence is issued by PAGCOR to operators of casinos or casino premises. A licence can either be a provisional licence or a gaming licence, and all gaming activities that the licensee intends to conduct and provide should be covered under such licence.

For table games, the licensee is authorised to operate only the following games of chance commonly played in casinos and any variations and derivatives thereof that are approved by PAGCOR, such as:

• baccarat;
• blackjack;
• roulette;
• pontoon;
• casino war;
• craps;
• stud poker;
• big and small;
• money wheel;
• pai-gow;
• pula at puti; and
• poker.

A land-based casino licensee may propose other games subject to PAGCOR’s written approval prior to their implementation. Rules, table layouts and other aspects of such games will need PAGCOR approval. Licensees should refer to and follow the relevant Casino Regulatory Manuals and any other amendments to such manuals issued by PAGCOR (“Casino Regulatory Manual”), which vary depending on the location or category of land-based casinos (casinos in the Entertainment City, in economic zones or in greenfield areas).

Electronic gaming machines (slots, EGMs) are allowed to be offered in land-based casinos, provided that said machines are supplied by PAGCOR-accredited suppliers and have gone through the testing and certification procedures under the Supplier Regulatory Manual of PAGCOR. Notably, PAGCOR’s Technical Standards for Electronic Gaming Machines (PTS-EGM) Version 1.1 was approved in August 2023, with implementation starting on 1 January 2024.

E-Gaming and Remote Gaming in Land-Based Casinos and IRs

In late 2023, PAGCOR issued the “Regulatory Framework for the Remote Gaming Platform”. These rules provide for a “hybrid” type of gaming operations which still requires a land-based or brick-and-mortar venue but allows for remote gaming or e-gaming access by customers. PAGCOR acknowledged that with the advancements in technology and evolution in player preferences, it needed to establish and enforce a regulatory framework for the activation of the online gaming platform. This allowed for land-based casinos and IRs to operate remote gaming platforms.

A ”remote gaming platform” is an adjunct facility provided by an e-gaming service provider (to be defined later) to land-based gaming sites to allow the latter to offer e-gaming to its customers.

Poker Operations and Tournaments Regulated by PAGCOR

PAGCOR recently issued new guidelines that govern poker operations and tournaments. Other than poker games offered as table games in land-based casinos, there are licensed gaming sites around the country offering poker games. PAGCOR has also issued rules and guidelines on conducting poker tournaments (either by onsite or offsite operators) or within IRs.

PAGCOR Charter

As a rule, pursuant to the Revised Penal Code, all forms of gambling are illegal. The only forms of gambling allowed are those authorised by law. The PAGCOR Charter gives PAGCOR its franchise to maintain and operate gambling casinos. All persons primarily engaged in the business of gambling, together with their allied businesses, shall register with and secure approval from PAGCOR. The conduct of gambling activities outside of the authority granted by PAGCOR is punishable under the Revised Penal Code and other criminal statutes.

Executive Orders

Executive Order No 74 recently amended/repealed certain portions of Executive Order No 13, and declared a nationwide ban on offshore gaming.

The “whereas clause” of EO No 74 cites the Philippine Constitution, which provides that the President is vested with the power of control over all the executive departments, bureaus, and offices, and the mandate to ensure the faithful execution of laws. This includes authority over PAGCOR (as an executive body), and the enforcement of the provisions of the charters of special economic zones.

PAGCOR Rules

The legal/regulatory framework governing gambling primarily consists of rules and regulations promulgated by PAGCOR (“PAGCOR Rules”). We note that PAGCOR has the authority to change and amend these PAGCOR Rules in the exercise of its powers.

In the exercise of its regulatory functions, PAGCOR has issued casino regulatory manuals particular to the location of the land-based casino, such as the Casino Regulatory Manual for the integrated resorts operating in the Entertainment City complex in Manila and the Casino Regulatory Manual for the casinos located in Clark, Pampanga.

With respect to online gaming or e-gaming operations, the Electronic Gaming Licensing Department (EGLD) regularly updates its rules concerning e-gaming activities. The most recent Gaming Site Regulatory Manuals (GSRM) for e-gaming is published by PAGCOR. For rules governing e-gaming service providers, the most updated Regulatory Framework for the Accreditation of Service Providers and Processing of System-Related Requests should be consulted. At the time of writing, the latest version was issued in September 2024. 

In our experience, PAGCOR issues regular updates, amendments and clarifications to the PAGCOR Rules, and these issuances can be located on their website. Minor updates and clarifications are also emailed to licensees and accredited suppliers and service providers by the relevant department governing them.

Special Economic Zones

Other than PAGCOR, authorities regulating certain special economic zones in the Philippines may also host and license gaming entities whose activities and gaming equipment (including computer servers) will generally be limited within such economic zone. These authorities are the CEZA, the APECO, and the Authority of the Freeport Area of Bataan (AFAB).

Philippine Charity Sweepstakes Office

Republic Act No 1169 established the Philippine Charity Sweepstakes Office (PCSO) and authorised it to hold and conduct lotteries and other similar activities as determined by its Board of Directors and with the approval of the President of the Philippines.

On 13 July 2024, the PCSO temporarily suspended the E-Lotto system to give it a new system and platform. However, further details on the launch of the said new lotto system have not yet been announced by the PCSO.

Local Government Units

On a local level, the Philippines is divided into local government units, with each local government unit having an elected set of chief executive and members of a legislative body authorised to govern their constituents. In establishing land-based casinos or gaming venues (for e-gaming), local governments may issue their own rules and requirements for securing business permits and no-objection letters. Potential operators and licensees are advised to look into the rules and ordinances of the local government unit in which they intend to do business in to see if their rules allow their operations.

There are also certain local government units that have announced an outright ban on anything related to gambling. It is advised that potential licensees consult local counsel to determine whether their local government is gaming-friendly.

Anti-Money Laundering Act and its Implementing Rules and Regulations

Casinos, including internet and ship-based casinos, with respect to their casino cash transactions related to their gaming operations, were designated as covered persons under the AMLA and its implementing rules and regulations.

Tax Code and Tax Laws

The taxation of casinos and PAGCOR licensees in the Philippines is governed by the National Internal Revenue Code (“Tax Code”) and specific legislation like Republic Act No 11590.

Gambling is generally described under penal laws as “any other game of scheme the result of which depends wholly or chiefly upon chance or hazard; or wherein wagers consisting of money, articles of value or representative of value are made; or in the exploitation or use of any other mechanical invention or contrivance to determine by chance the loser or winner of money or any object or representative of value”. 

E.O. No 13 expanded the definition of “illegal gambling” with respect to online gambling as “committed by any person who, in any manner, shall directly or indirectly take part in any game scheme, regardless of whether winning thereat is dependent upon skill or chance or both, wherein wagers consisting of money, articles of value or representative of value are at stake or made, when such game scheme is not authorized or licensed by the government agency duly empowered by law or its charter to license or authorize the conduct of such games, or is conducted in a manner that violates the terms and conditions duly prescribed by the said government agency.”

Philippine statutes do not specifically define “land-based gambling”. However, in general, a casino is considered land-based (and requires a casino or operator’s license) if gambling activities or games regulated as gambling are played in such physical premises. Land-based casinos are issued a provisional licence or regular gaming licence issued by PAGCOR. Note that with the recent framework allowing for remote gaming to be offered in mobile or virtual settings, this definition is evolving.

Online gaming is synonymous with “electronic gaming” or “e-gaming” under PAGCOR Rules. PAGCOR defines “electronic games” as virtual games of chance (ie, casino games, and mixed games of chance and skills. Also, it defines “electronic gaming” as the conduct of electronic games and taking of wagers through any computer or communication device connected to the internet or the use of internet-based technology and other communication devices that are necessary for gaming operations.

Penalties for Those Engaged in “Illegal Gambling”

Both individual gamblers/players as well as the persons or entities hosting illegal gaming within the Philippines could be held liable under current anti-illegal gaming laws. Persons who are found guilty of violating anti-illegal gambling laws and regulations could be held liable for fines, suspension, or closure of the business, and even imprisonment, when decreed by the court.

Under the Revised Penal Code, persons found guilty of violating anti-illegal gambling laws may be sentenced to serve a prison sentence ranging from four to eight years per count.

The enforcement of anti-illegal gambling laws falls under the jurisdiction of the executive department and law enforcement agencies such as the National Bureau of Investigation and the PNP, which are authorised to conduct raids, issue warrants of arrest and file cases before criminal courts.

Penalties for Violations Committed by Licensed Gaming Entities

PAGCOR, in the exercise of its regulatory powers, imposes fines and monetary penalties on erring licensees and accredited entities. PAGCOR can revoke licences or authorisations granted and can order the closure of their operations. PAGCOR can also file and recommend criminal charges if the violations of their licensees and the persons responsible fall under the crimes penalised under the Revised Penal Code or any other criminal statutes.

Under the Revised Penal Code and Republic Act No 9287, any person who participates in any illegal numbers game (ie, gambling not regulated or allowed by PAGCOR or any other authorised agency) shall suffer the penalty of imprisonment if such person acts as a bettor.

Anti-POGO Bill

The legislature (Senate and House of Representatives) is in the process of finalising a bill that will totally ban POGOs from the Philippines. Since this is expected to be consistent with EO No 74, Senators expect this bill to be passed into law shortly.

Reduced Licence Fees for Online and Land-Based Operators

PAGCOR has announced a series of reductions in licence fees for gaming operators, aiming to enhance the industry’s competitiveness and attract more investments. PAGCOR Chairman Alejandro Tengco also recently sent a letter to e-bingo licensees stating that as a result of successful negotiations with a leading supplier of e-bingo machines, e-bingo operations can expect to receive a larger share of their GGR.

AML Enforcement

Recently, there has been a focus on the enforcement powers of the AMLC against violators of the AMLA. Under the implementing rules and regulations of the amended AMLA (specifically, “An Act Designating Casinos as Covered Persons under Republic Act No 9160”), casinos, including internet and ship-based casinos, with respect to their casino cash transactions related to their gaming operations, were designated as covered persons.

While the AMLC is the implementing body of the AML and its rules, PAGCOR, as the regulatory body over casinos, regularly issues orders and memoranda providing clarifications and specific guidance on the obligations of its licensees with respect to AML laws and regulations. PAGCOR regularly issues guidelines on conducting KYC and submitting reports. It is expected that PAGCOR will strengthen its supervisory role in AML matters and work closely with the BSP to ensure compliance.

Rules on Digital Assets

The legal framework for cryptocurrencies in the Philippines continues to evolve as both the BSP and Securities and Exchange Commission work to balance different objectives of stakeholders. The BSP categorises cryptocurrencies as a type of virtual asset but does not recognise them as legal tender in the Philippines. Thus, while they can be exchanged for fiat currency, they are not accepted as official currency for transactions within the country. There are discussions on allowing crypto as a form of currency for gaming; however, at present, there are no formal rules or guidelines on this matter.

The key regulatory authorities that apply to the Philippine gambling sector are the following:

• The Executive Department has control over all executive departments, including PAGCOR; the President can issue executive orders under its rule-making power.
• PAGCOR is the regulator of gambling activities within the Philippines.
• PCSO is the regulatory body for lotteries, numbers games and small-town lotteries.
• Special economic zone authorities, other than PAGCOR, are authorities regulating certain special economic zones in the Philippines. These authorities may also host and license gaming entities whose activities and gaming equipment (including computer servers) will generally be limited within such economic zones. These authorities are the Cagayan Special Economic Zone Authority, the Aurora Pacific Economic Zone and Freeport Authority (APECO), and the Authority of the Freeport Area of Bataan (AFAB).
• The Games and Amusements Board (GAB) regulates and supervises professional sports and allied activities to combat and prevent the existence and proliferation of illegal bookie joints and other forms of organised illegal gambling connected with all play-for-pay sports and amusement games. The GAB oversees the betting aspect of horse racing.
• The Anti-Money Laundering Council (AMLC) refers to the financial intelligence unit of the Republic of the Philippines, which is the government agency tasked with implementing the AMLA, as amended. In 2017, casinos were included as covered persons under the AMLA.
• Local government units have their own set of regulations and may issue business permits for gaming entities operating within their jurisdiction.

The Philippines’ approach to gaming and gambling regulation is a combination of prescriptive and management-based systems. The legal framework around regulating gambling activities emanates from the premise that, unless authorised by law, all types of gambling activities are illegal. PAGCOR Rules then provide for specific requirements and procedures under which licences may be given to applicants. Non-compliance will result in penalties, including the revocation of any licence or approval given by PAGCOR. It is made clear to licensees that any licence given to an applicant is not a right, but a privilege that can be cancelled by the state at any time.

However, we have seen in the past years that in the regulation and supervision of B2B providers (ie, suppliers, service providers, junket operators, etc), PAGCOR has imposed a management-based approach by placing the responsibility of accreditation and supervision of these providers on the casino licensees that deal and contract with them. Licensees are required to perform their due diligence on these providers and at times, are subject to penalties themselves if the B2B providers are found to be non-compliant.

Due to the prescriptive approach of the Philippine government towards gaming and gambling, we recommend consulting local counsel or PAGCOR prior to engaging in activities or businesses that directly or indirectly involve gaming.

In addition to the expected legislative changes in 3.7 Recent or Forthcoming Legislative Changes and PAGCOR’s mandate to strengthen its supervisory role, the following forthcoming changes are worth noting.

New Licensing/Accreditation Requirements

PAGCOR has recently indicated its intention to require registration and permanent establishment requirements for foreign/non-accredited data/content streaming providers to e-gaming licensees. Based on initial information from PAGCOR, this includes requiring said B2B providers to set up an office in the Philippines and secure PAGCOR accreditation. This will ensure additional oversight and supervision by PAGCOR of games and content provided to its e-gaming operations.

Reorganisation within PAGCOR

As a result of the ban on POGOs, it is expected that the Offshore Gaming Regulatory Department (the department supervising POGOs and other offshore gaming entities) will be non-operational. The EGLD may take on additional roles and functions, including supervising the special class of BPOs (SCBPOs).

In general, PAGCOR offers the following licences:

• licences for land-based casinos;
• licences for IRs; and
• licences for operator of a PAGCOR-licensed gaming venue.

PAGCOR also offers accreditation to the following entities:

• gaming content providers;
• e-gaming service providers;
• support providers;
• special class of BPOs (SCBPOs); and
• equipment and software suppliers.

The above are licences specific to gaming activities. Entities that do business in the Philippines are also required to secure a licence to do business from the SEC and business or local government permits from the relevant local government unit where they choose to conduct business.

The Philippine government has lifted the moratorium on land-based licensees and IRs. For e-gaming licences, as of November 2024, there is a “soft moratorium” on receiving new applicants in order to allow PAGCOR to properly and carefully process existing applications and review existing licensees.

Supplier accreditations (including for electronic gaming machines and other services) are provided on an ongoing basis.

It is recommended, however, that before submitting a formal application and the required documents, applicants consult counsel in order to determine the type of licence(s) that are applicable to their gaming or gaming-related activities, and whether there have been recent changes to or developments in the category of licence relevant to their operations. PAGCOR has historically been helpful and transparent when applicants and potential licensees consult them on the application process.

Land-based casinos are typically issued a provisional licence at the beginning of their operations, which is subsequently converted into a more permanent gaming licence once PAGCOR is satisfied with all the conditions under its PAGCOR Rules. The duration of land-based casino licences will depend on the terms agreed upon by the licensee and the regulator, which can be as long as 20 years, subject to renewal.

For an operator of a PAGCOR-licensed gaming venue, licence validity is one year for new gaming sites, and two years upon renewal.

PAGCOR also offers accreditation to the following:

• gaming content providers;
• support providers; and
• special class of BPOs.

Their accreditations are renewed on a yearly or two-year basis, depending on their relevant agreements with PAGCOR.

Initial Application Process

An application starts with a letter of intent addressed to PAGCOR’s Chairman and CEO. A complete list of requirements (depending on the licence or accreditation required), including the application forms can be found on the PAGCOR website. It is recommended that a potential applicant consult local counsel to secure the most recent application requirements as these are updated periodically.

Basic requirements that will accompany the initial submission are the following:

• charter documents showing the establishment of an entity in the Philippines with the required ownership and capitalisation;
• company overview and profile, including an organisational chart and business plan;
• sworn statements and affidavits relating to the ability of the applicant to engage in the business, and certification as to the lack of disqualification;
• requirements under the Anti-Money Laundering Act;
• proof of identity and background of shareholders and directors, and
• other requirements to be determined by PAGCOR.

PAGCOR may require additional documents. PAGCOR (through itself or through third-party auditors) will then conduct a rigorous background check and perform due diligence on the applicant, which may include site visits, interviews and probity checks on the shareholders, directors and officers of the applicant, prior to the grant of a licence.

For gaming machines and gaming platforms or individual e-games, PAGCOR requires certifications from independent and accredited testing laboratories from its list (depending on the activities).

PAGCOR usually grants a provisional licence initially, which may then be converted into a permanent licence once all of its conditions are fulfilled.

All applications for licensees will require the approval of the PAGCOR board of directors.

Requirements for Officers, Directors and Personnel

PAGCOR requires the officers/directors of the entity engaged in gaming to undergo probity/background checks to ensure they are qualified persons of integrity who have the capability to engage in the business of gaming. As part of the application, PAGCOR’s third-party probity checker may ask its officers/directors to disclose the following information:

• personal information (addresses, identification numbers, etc);
• history of directorships/business affiliations;
• financial details;
• litigation/criminal records; and
• possible conflict of interest/family or personal relationships with persons in government.

In recent PAGCOR regulations, PAGCOR has also required certain personnel to undergo training under accredited providers and programmes or secure a gaming employment licence (GEL).

Applications for Accreditation

In general, an applicant seeking to secure an accreditation (and not a licence as an operator) (including B2B providers) will be subject to different requirements and slightly less rigid approval processes compared to B2C operators.

In all types of applications, we have found it helpful to conduct preliminary consultations with the relevant PAGCOR department at least six months prior to intended operations (except for land-based/IRs, which will require longer timeframes depending on the size of the project, location, construction requirements, etc).

Most PAGCOR e-gaming applications can be completed within two to three months from completion of submission, and may vary depending on additional requirements, site visits to be conducted, probity checks by third-party auditors, system integration (for e-gaming), product testing, etc. For e-gaming licensees, the timeline may also be affected by the types of games to be submitted for approval.

For applicants that require a presence in the Philippines, it is recommended that they allocate another four to six weeks for their SEC registration and issuance of a licence to do business in the Philippines. It is also important to consult with local counsel even prior to the incorporation process in order to avoid delays caused by challenges in local governments and opening of bank accounts.

For supplier accreditations, this may be completed within two months of the application with PAGCOR.

It is recommended that the applicant consult PAGCOR or a legal professional to determine the costs and fees associated with licence applications as these vary depending on the activities that the applicant will engage in. In determining the total costs for an application, the applicant should consider the following:

• set-up or establishment costs if it is required to have a local entity or permanent establishment in the Philippines, including SEC fees, local government permits, employee benefits, etc;
• capitalisation requirements (ie, paid-up capital required upon application);
• cash bond (if required);
• application fees to be paid to PAGCOR;
• registration fees for individual games or platforms;
• employee training fees; and
• customs fees and duties for equipment (if not covered under exemptions).

It is recommended that the applicant consult PAGCOR or a legal professional to determine annual fees that will be paid by the licensee or accredited provider. In determining the relevant annual fees, the licensee should consider the following:

• yearly registration fees for games or platforms;
• any revenue-sharing or minimum fees based on GGR or winnings (these tend to change depending on the year of operation);
• annual licence fees; and
• national and local taxes.

Casino Venues

A land-based casino or a physical gaming venue must be located or situated in an area or vicinity where gambling activities are not prohibited. Applicants must consult PAGCOR Rules for the most updated restrictions for gaming locations. In general, gaming venues should not be located near schools, places of worship, etc, unless they fall under the exemptions provided in the PAGCOR Rules.

The venue or location of an applicant or potential licensee determines the primary legal and regulatory framework that will govern the licensing of its premises or operations. There are different/unique casino regulatory manuals (CRMs) that govern different venues (ie, if the location is greenfield, in an ecozone or in the Entertainment City).

The CRMs and PAGCOR Rules also provide for requirements for casino layouts, minimum hotel room-to-gaming floor ratios for IRs and other location-based requirements prior to approving the issuance of licences to these land-based casinos.

Applicants should also be aware of local government requirements and limitations when looking at premises for operations. Most local governments have their own set of rules that govern the conduct of gaming operations, with some local governments implementing a total ban on any gaming activities within their jurisdiction.

Permit to Possess (Warehouses, Showrooms, Data/Content Streaming Sites)

In general, it is illegal for any person to possess gaming or gaming-related equipment and paraphernalia without the specific approval of PAGCOR. As a result, suppliers that intend to establish showrooms and warehouses for storing or exhibiting their electronic gaming machines will require a “permit to possess” such equipment or maintain the warehouse. Recently, data/content streaming providers of either land-based or e-gaming sites have also been required to secure such permits on a per-site basis. When in doubt on whether equipment falls under gaming or gaming-related equipment, it is recommended that local counsel is consulted.

Remote Gaming Venues; Enhanced AML and KYC Requirements

Since last year, land-based casinos have been allowed to conduct remote gaming through remote gaming venues. PAGCOR has also issued guidelines and memos to land-based casinos in relation to stricter customer due diligence monitoring and KYC processes, specifically in relation to the conduct of land-based casinos’ junket operations (whether conducted by the casino itself or through registered junket operators). This is expected to continue throughout 2025.

A B2C licensee is akin to an “operator” of an electronic gaming system under PAGCOR Rules. An “operator” is defined as the entity duly licensed by PAGCOR to conduct online gaming at its licensed gaming venue using the technology provided by a particular e-gaming service provider or supplier. E-gaming operators are only allowed to offer their games or accept bets from Philippine customers or players.

Under the “Regulatory Framework for the Accreditation of Service Providers and Processing of System-Related Requests (Rev v.2)”, “electronic gaming operations” is defined as the conduct of local gaming using an electronic gaming system or any gaming system or equipment where the suite of games, whether in physical or virtual conduct of play, are offered in brick-and-mortar gaming venues, operated separately from land-based casinos.

In addition to regulating and licensing casinos and gaming operators, PAGCOR also requires that entities “indirectly” engaged in gambling activities be licensed or accredited by PAGCOR. It is recommended that companies that intend to enter into commercial agreements to provide services or supply products to PAGCOR and PAGCOR licensees consult legal counsel to determine whether any accreditation or approval is required prior to dealing with PAGCOR licensees.

• Accreditation of Equipment and Software Suppliers: A supplier of equipment and/or software must enrol first with PAGCOR before doing business with a casino operator. Enrolment procedures are prescribed in PAGCOR’s Suppliers’ Regulatory Manual.
• Accreditation of Service Providers: Under PAGCOR Rules, e-gaming operators must only engage with PAGCOR-accredited service providers. This includes (but is not limited to) service providers providing components of the online gaming process, such as gaming content providers and support providers.
• Special Class of BPOs (SCBPOs): This refers to entities that are servicing legitimately licensed gaming operators abroad and do not in any way handle betting but purely product marketing and customer relations and are not servicing any POGO, and have a workforce comprised of at least 90% Filipino employees.

PAGCOR has recently indicated its intention to require registration and permanent establishment requirements for foreign/non-accredited data/content streaming providers to e-gaming licensees. Based on initial information from PAGCOR, this includes requiring said B2B providers to set up an office in the Philippines and secure PAGCOR accreditation. This will ensure additional oversight and supervision by PAGCOR of games and content provided to its e-gaming operations.

General Provisions on Marketing and Promoting E-Gaming

There are currently no specific rules or regulations in connection with the use of affiliates in e-gaming. However, under the “Regulatory Framework for Marketing and/or Promoting Remote Gaming Platform and Services”, PAGCOR requires all marketing/promotional activities to strictly adhere to its rules. These activities also require co-ordination with PAGCOR’s Compliance Monitoring and Enforcement Department for both implementation and ongoing monitoring.

While the PAGCOR Rules do not specifically mention white-label providers, they allow for accredited e-gaming service providers to develop and maintain an online gaming or betting platform on behalf of licensed operators. An operator, by default, may offer multiple game offerings along with multiple brands simultaneously in its gaming venue.

The remote or online gaming platform must have prior written approval by PAGCOR before any implementation. Furthermore, only games or markets or sports with prior approval of PAGCOR are allowed to be deployed in the remote or online gaming platform as game contents.

An e-gaming service provider can be either a gaming system service provider or a data/content streaming provider. PAGCOR Rules provide for the application, requirements and standards that should be met by the online or remote gaming platform to be used by an e-gaming service provider.

The following technical measures are relevant:

• E-gaming service providers shall implement their cybersecurity systems and controls to reduce the risk of the gaming system being compromised. Non-compliance with the said technical requirement may lead to the imposition of a penalty or fine. Also, as part of reporting and monitoring, the gaming system must be integrated with PAGCOR’s third-party audit platform.
• E-gaming service providers are required to submit a certification issued by a reputable and independent gaming laboratory stating that it has passed corresponding technical standards on cybersecurity systems, measures, and IP blocking clearances.
• The e-gaming service provider’s electronic gaming system shall not allow player registration and shall not accept bets emanating from outside the Philippines.

PAGCOR Looking to Launch Online Gaming Operations

PAGCOR, in interviews with the media, has recently indicated that it intends to launch its own electronic or online gaming operations by 2025.

PAGCOR Open to New Developments in the E-Gaming Sector

The current PAGCOR administration has been actively adapting to technological advancements and evolving consumer preferences by introducing new games (ie, specialty games and numeric games), embracing mobile platforms, and facilitating remote gaming venues. It is recommended that potential applicants for licenses or accreditations approach PAGCOR for proposals, which PAGCOR can review based on its rules and regulations.

Player Exclusion Programme

PAGCOR implements a responsible gaming (RG) programme in which players who are developing a problem with gaming may be excluded/barred from entering the gaming site/venue. An exclusion application form may be filed by either the player with the gaming problem or his/her family.

The casino operator may also opt to file an exclusion form against a player who is engaged in cheating, theft, fraud, and other similar offences.

In addition to those in the list of excluded individuals, the following persons are not allowed to play in any casino in the country:

• persons under 21 years of age;
• officials or employees of the government or any of its agencies;
• members of the armed forces of the Philippines including the army, the navy, the air force, and the national police;
• employees of casinos (licensees); and
• loan sharks. 

Recently, in line with PAGCOR’s commitment to maintaining the integrity and transparency of the gaming industry, PAGCOR started to implement the enhanced National Database of Restricted Persons (NDRP) on 15 January 2024, which includes the names of government officials and employees.

PAGCOR Code of Practice for Responsible Gaming

PAGCOR issued a Code of Practice for Responsible Gaming to set out rules and guidelines on RG that should be adopted by all PAGCOR-registered and licensed entities. The principles lay down the minimum standards for all gaming entities, but licensees should also look at their specific casino regulatory manual applicable to their specific licence for the unique implementing guidelines.

The Code of Practice for Responsible Gaming discusses rules on the following aspects of RG:

• game fairness and awareness programmes;
• communications;
• advertisements;
• facilities within casinos;
• training of management and staff;
• support facilities (such as hotlines and emails for those that require help with gambling problems);
• implementation of exclusionary programmes; and
• penalties for erring licensees.

Responsible Gaming Guidelines (Specific to Remote Gaming Platforms)

Remote gaming platforms are required to provide the following measures in the conduct of their games:

• Upon logging in, the remote gaming platform must show a short infographics or video clip which shall discuss the responsible gaming reminders of PAGCOR including the prohibition to play in open and public places.
• The platform must show a pop-up reminder or notice informing the prospective players of the categories of individuals that are not allowed to register and/or play online games.
• With each login, players must be prompted to read and accept the platform’s terms of use (TOU) before accessing the gaming or betting interface. The copy of the latest TOU of the platform must be submitted to PAGCOR prior to implementation in the platform.
• A player’s violation of any provisions of the TOU shall be a ground for the cancellation or suspension of his/her remote gaming platform account, and/or the forfeiture of funds thereof, as the case may be. Forfeited funds shall form part of the gross gaming revenue.

There is no applicable information in this jurisdiction.

Based on discussions with PAGCOR president and COO Wilma Eisma, PAGCOR intends to enhance responsible gaming measures in the near future through the use of technology and gambling management tools.

The AMLA identifies casinos, including ship-based and internet-based casinos, as covered institutions for the purpose of compliance with the AMLA and related laws and regulations. Under the AMLA, casinos are required to automatically report to the AMLC the details of each casino transaction involving an amount in excess of PHP5,000,000 or its equivalent in any other currency.

In addition, offshore gaming operators/internet gaming licensees and their service providers have been designated as covered persons under AMLA, thus they are required to comply with the same reporting requirements.

To implement the inclusion of casinos under the coverage of the AMLA, the AMLC, PAGCOR, CEZA and APECO jointly promulgated the casino implementing rules and regulations (CIRR) of RA No 10927, which took effect on 4 November 2017. The IRR mandates casinos to apply the following principles throughout their businesses: good corporate governance, KYC rules and procedures, appropriate risk-management system and employee training. To comply with KYC obligations, casinos are also required to establish and record the true identity of their customers based on identification documents submitted upon opening of an account or redemption of casino chips or tokens or gaming instruments. For this purpose, appropriate systems and methods, and adequate internal controls shall be established for verifying and recording the true and full identity of customers. The IRR further provides that casinos shall conduct customer due diligence to ensure that they know their customers, including the intermediary and the person or entity on whose behalf the transaction is being conducted. Thus, the CIRR prohibits the opening of anonymous accounts and accounts under fictitious names, and the processing of withdrawal or transfer of funds from the account of the customer without conducting a face-to-face contact.

While the AMLA and the IRR provide for the legal framework for compliance by covered persons, PAGCOR, from time to time, and in the exercise of their functions as the gaming regulator, issues guidelines, clarifications and orders on how its licensees should comply with the AMLA. The department within PAGCOR responsible for the issuance and monitoring of compliance with these issuances is called the PAGCOR Anti-Money Laundering Supervision and Enforcement Department (PASED).

With the inclusion of casinos as “covered persons” under the AMLA, casinos are required to comply with the requirements and are subject to the penalties prescribed under the AMLA and the CIRR. The AMLC, other regulatory bodies and PAGCOR also issue regular orders, guidelines and supplemental rules relating to AML compliance. Therefore, this summary does not purport to provide a comprehensive list of requirements, but rather the general principles that should be incorporated into the operations of a casino licensee. It is recommended that the licensee or potential licensee consult a legal professional for guidance.

Casinos shall therefore apply the following principles based on the CIRR throughout their businesses:

• conform with high ethical standards and observe good corporate governance consistent with the guidelines issued by the appropriate gaming agency (AGA) in order to protect the integrity of their operations and that of the gaming industry;
• know their customers sufficiently to prevent suspicious individuals or entities from transacting with, or establishing or maintaining a relationship with casinos;
• adopt and effectively implement an appropriate anti-money laundering and countering the financing of terrorism risk management system that identifies, assesses, monitors, and controls risks associated with money laundering and terrorist financing;
• ensure that officers and employees are aware of their respective responsibilities under this CIRR and carry them out in accordance with its money laundering prevention programme; and
• co-operate with the AMLC and the AGA for the effective implementation of the AMLA and the CIRR, and other applicable issuances.

In general (and at a minimum), all customer due diligence records and casino transactions of customers must be maintained and safely stored for at least five years. Casinos are required to report to the AMLC all covered transactions and suspicious transactions within five working days, unless the AMLC prescribes a different period, which shall not exceed 15 working days from the occurrence of the transaction. Thus, all casinos shall register with the AMLC’s electronic reporting system.

Significantly, casinos are prohibited from engaging in any transaction involving the conversion of cash from one form to another without being used in gaming, and results therefrom, made through the receipt of cash for transmittal of all or part thereof through wire or telegraphic transfer for or on behalf of a customer; payments in cash of funds received through wire or telegraphic transfer; and the cashing of checks or other negotiable instruments.

Casinos are also prohibited from receiving cash if its purpose or ownership cannot be ascertained within a period of at least seven days from the date of receipt, and from allowing the use of casino chips in premises other than the issuing casino, including betting and exchanging into cash or other forms of casino chips.

PASED’s issuances can be viewed on the following website: https://www.pagcor.ph/pased/regulatory-orders.php. Licensees should keep themselves regularly informed of any updates and new orders as PASED issues them from time to time.

PASED’s recent regulatory issuances and orders mostly pertain to the responsibilities and obligations of land-based casinos in complying with the AMLA. While junket operators are not considered “covered persons” under the AMLA, PASED places the burden in overseeing and supervising junket activities on casino operators or licensees. In PASED’s most recent issuance last August 2023, it issued supplementary guidelines on the conduct of junket operations of land-based casino, and provided rules for customer due diligence, transaction monitoring and record-keeping (in junket operations).

Additional KYC and AML Requirements for E-Gaming Platforms

Just recently, PAGCOR issued a memo to e-gaming operators and service providers requiring additional steps for KYC processes upon registration of new players, effective November 2024. PAGCOR also mandated a reduction of the number of days to conduct the full KYC process for players from seven to three days.

PAGCOR regulates and supervises advertising and marketing activities that relate to gaming, gambling and the promotion of these activities. In the exercise of these powers, PAGCOR issued the Code of Conduct for Responsible Gaming which provides guidelines and the minimum standards and requirements for licensees.

The Consumer Act of the Philippines (as implemented by the Department of Trade and Industry) (“Consumer Act”) can also supplement PAGCOR Rules to the extent that the Consumer Act protects gaming customers as consumers.

A “marketing/promotional activity” is any activity, programme, or incentive, or any combination thereof, which gives publicity to, or otherwise entices people to register and play. PAGCOR should approve these activities and the materials to be used before they are disseminated to the public. In general, these are:

• membership or loyalty programmes;
• sponsorships;
• any contest, lucky draws, raffles or tournaments; and
• announcements and/or advertisements.

The Consumer Act defines “advertisement” as any advertising material that is prepared and disseminated through a mass medium to the public. This encompasses any advertising matter that is applied, circulated, or disseminated via such media. “Advertising” means the business of conceptualising, presenting or making available to the public, through any form of mass media, facts, data or information about the attributes, features, quality or availability of consumer products, services or credit.

PAGCOR Rules also include “marketing and promotional activities” under its regulatory powers, and these include print, TV and cable, radio, the internet (websites, blogs, social media sites, electronic mail, etc) telephone marketing (SMS, MMS, calls), promotional posters, streamers, fliers, signages, and billboards as forms of media.

Under guidelines issued by the Advertising Standards Council (ASC), gaming advertising must be socially responsible. Said material must not portray, encourage, condone gambling behaviour that is socially irresponsible or could lead to financial harm, be directed at children, or feature people who are or who appear to be under 21 years of age, or suggest that gambling can be a solution to financial problems.

Under PAGCOR Rules, the mandatory elements of advertisements promoting gambling are as follows:

• an age restriction logo indicating that individuals under 21 are prohibited from gambling; and
• a responsible gaming slogan must be displayed, stating “21+ Only. Keep it Fun. Play Responsibly.”

There are also specific rules depending on the type of gaming activity. For land-based casinos, permissible advertising mediums include print, TV and cable, radio, internet, SMS, posters, and billboards. The content of such advertisements must focus on gambling as a form of entertainment, fun and leisure and not as a money-making activity, and must not imply that gambling solves financial problems. Misleading statements about odds or guaranteed winnings are strictly prohibited.

Billboards promoting gambling facilities and activities must be located no less than 200 metres away from schools and places of worship, such as churches.

On the other hand, the licensees, operators, and/or service providers of approved online or remote gaming platforms/offerings/services may implement marketing/ promotional activities, provided that they shall strictly adhere to the determined standards by the PAGCOR. A marketing/promotional activity is any activity, programme, or incentive, or any combination thereof, that gives publicity to, or otherwise entices people to register and play. These are: (i) membership or loyalty programmes; (ii) sponsorships; (iii) any contest, lucky draw, raffle or tournament; and (iv) announcements and/or advertisements. An applicant must submit the complete mechanics or the implementing rules and guidelines (IRG) of the marketing/promotional activity, which shall include the following:

• title and period covered;
• objective;
• prizes, if applicable;
• general mechanics;
• terms and conditions;
• irregularities and resolution, if applicable; and
• other necessary information, as may be required.

The concerned applicant shall co-ordinate all marketing/promotional activities with PAGCOR for implementation and monitoring prior to their implementation.

As part of PAGCOR’s commitment to upholding the principles of responsible gaming, through a memorandum dated 18 March 2024, it reiterated the incorporation of the following mandatory elements of advertisements promoting gambling:

• RG Slogan: All advertisements must prominently feature the approved slogan: “Play Responsibly. Keep it Fun.”
• Age Restriction Logo: The age restriction logo (21+ Only) should be included in all materials.
• RG Tag Line: For TV, radio, and mobile/web-based ads, the tagline “21+ Only. Game Responsibly. Keep it Fun.” must be included either throughout the advertisement or at its conclusion.

A licensee or operator that has violated PAGCOR’s Rules on the provisions of advertising and promotional activities shall be subject to monetary penalties and fines by PAGCOR.

There is no applicable information in this jurisdiction.

In general, PAGCOR licensees should update their corporate and shareholder information whenever they renew their licences. We also encourage clients to notify PAGCOR of such changes on a periodic basis even in between these periods in order to maintain transparency with the regulator.

If a change in shareholders results in a change in control of the PAGCOR licensee (defined as more than 50% ownership and/or voting control), the concerned entity is required to notify PAGCOR through the filing of an application for change in ownership or a request for amendment of certificate of registration.

If the concerned entity regulated by PAGCOR is a publicly listed company, any person who acquires the beneficial ownership of 5% or more of any class of equity securities of the concerned entity is required to disclose such fact to the Philippine Stock Exchange (PSE) and to the SEC. Likewise, any person who is the beneficial owner of 10% or more of any class of any security of the concerned entity, which is a publicly listed company, is required to disclose and file a statement with the SEC and the PSE.

Any change in ownership of the licensee shall be reported to the PAGCOR upon occurrence of said change, provided, however, that for new operators, the sale or transfer of any share or shares in the corporation shall not be allowed within a period of two years from the commencement of the operation of the gaming site, unless with prior written approval from the PAGCOR and for serious and justifiable cause.

Also, any change in, or addition to, its board of directors (BOD) shall be reported to PAGCOR within five working days from the occurrence of said change. In line with this, documentary requirements are to be submitted by the new partner or member of the BOD to PAGCOR.

(NOTE: Updating is mandatory, but the PAGCOR regulation is silent as to the need for its approval).

The requirements are applicable with respect to passive investors or those who hold shares in the PAGCOR licensee but do not participate in the operations of the gaming company. It should be noted that the obligation to disclose or report changes in control to PAGCOR is with the PAGCOR licensee, and not with the shareholder.

There is no applicable information in this jurisdiction.

We distinguish between enforcement of the law against players (of illegal gambling activities) or those not sanctioned by PAGCOR, and enforcement against operators (whether operating legally or illegally).

• Revised Penal Code and other Penal Laws (“Penal Laws”): For players in illegal gambling activities, those convicted will be punished as “bettors” under the Penal Laws (and its amendments). Personnel or staff, collectors, agents, owners or persons who allow the use of their properties for illegal gambling operations, operators of such activities, financiers and protectors, and those possessing gambling paraphernalia or materials not approved by the regulatory bodies are also punished under the Penal Laws. A criminal case would need to be filed against the violators. Penalties include both imprisonment and fines.
• Rules and Regulations Issued by PAGCOR or the Relevant AGA: These consist of fines and penalties directed towards licensed PAGCOR entities. PAGCOR, in the exercise of its regulatory powers, can impose monetary fees, fines, as well as issue notices to explain, cease-and-desist orders (against unauthorised activities), and can revoke licenses issued to its regulated entities.

See 11.1 Powers.

PAGCOR issues a list of fines and penalties for prohibited and unauthorised activities. Fines and financial penalties usually increase based on the frequency of the commission of the violation, with the final penalty including a revocation of the licence.

There is no applicable information in this jurisdiction.

The tax treatment of casinos and licensees differ with respect to the source of income or activities. Due to the different activities and various tax regimes (including potential tax incentives available), it is recommended to consult tax experts for legal and tax advice and structuring.

Land-Based Casinos

In general, income from the operation of casinos is exempt from corporate income tax, and is instead subject to a 5% franchise tax. Income from “other related operations/services” is subject to corporate income taxes. These include non-gaming operations services such as sale of goods and/or services. Licensees are also subject to the payment of VAT. However, if licensees directly contract with PAGCOR in connection with the latter’s gaming operations, the sale of goods and/or services performed with PAGCOR in relation to such gaming operations is subject to 0% VAT.

For licensees that are located in ecozones/freeports, their income realised from services/operations that are duly registered with their concerned Investment Promotion Agency (IPA) shall be subject to either a 5% gross income tax (GIT) or income tax holiday (ITH), whichever is applicable. Under the 5% GIT, PAGCOR licensees are exempt from regular corporate income tax and VAT. On the other hand, under ITH, they are exempt from regular corporate income tax, but subject to VAT. Income from non-gaming operations and those not registered with the relevant IPA are subject to regular corporate income taxes, VAT and other applicable taxes under the Philippine Tax Code.

The 5% franchise tax (and corporate income taxes if applicable) are payable directly to the BIR, specifically to the concerned Revenue District Office (RDO) where the licensee is registered. In addition to national taxes, PAGCOR itself also imposes licence and regulatory fees on its licensees. We advise clients to consult counsel as these fees are subject to changes depending on the specific activity or gaming product, and the platform where games are offered.

Online Gaming

Taxes and fees are imposed by PAGCOR on internet gaming licensees. The rates of the same depend on the type of games. Also, authorised gaming content providers, support providers, and special class of BPO are subject to taxes and fees.

Further, local government units impose taxes and fees within their respective jurisdictions.

Prizes won from games of chance are subject to a 20% final tax withheld by the game operator prior to payment to the winner. However, prizes amounting to PHP10,000 or less shall be declared ordinary income of the winner at the end of the tax year and be subject to regular individual income tax rates between 5% and 32%. Winnings from sweepstakes and lotteries operated by the Philippine Charity Sweepstakes Office are tax-exempt.

There is no applicable information in this jurisdiction.

The Gaming Employment License (GEL) is an authorisation issued by PAGCOR granting a person the privilege to be employed as a gaming employee within the Philippine jurisdiction. It is a pre-employment and continuing requirement for employment in any gaming establishment in the country and should form part of the employee’s handbook. No operator/licensee shall hire and keep an individual employed without a valid GEL.

Probity Checks Required on Officers and Directors

PAGCOR requires the officers/directors of the entity engaged in gaming to undergo probity/background checks to ensure they are qualified persons of integrity who have the capability to engage in the business of gaming. As part of the application, PAGCOR’s third-party probity checker may ask its officers/directors to disclose the following information:

• personal information (addresses, identification numbers, etc);
• history of directorships/business affiliations;
• financial details;
• litigation/criminal records; and
• possible conflicts of interest/family or personal relationships with persons in government.

Gaming Employment License for Employees

Prior to hiring and/or signing of an employment contract, the employer must ensure that personnel who are directly involved in gaming operations possess a GEL. It is recommended that local counsel is consulted to determine what functions require a GEL.

Minimal fees are charged by PAGCOR for the application for a GEL (less than USD100).

The Gaming Employment License Manual provides for the requirements to maintain and renew the GEL.

PAGCOR may revoke a GEL if the employee-licensee violates any provisions of the Gaming Employment License Manual. Such violations include breaches of PAGCOR Rules, dismissal for violations of the Labour Code of the Philippines, failing prescribed drug tests, or a determination that the employee is medically unfit for work.   

There is no applicable information in this jurisdiction.