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Implementing Rules and Guidelines for Online Poker Operators take effect

The Philippine Amusement and Gaming Corporation's Implementing Rules and Guidelines for the Licensing of Online Poker Operators and its Platforms took effect on March 23, 2023, setting licensing, platform and tax rules for online poker in the country.

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The Philippine Amusement and Gaming Corporation (PAGCOR) brought its Implementing Rules and Guidelines for the Licensing of Online Poker Operators and its Platforms into effect on March 23, 2023, under Revision 01. The framework covers the licensing of online poker operators (OPOs), the standards their platforms must meet, and the fees and taxes they owe1.

PAGCOR's own account of the rules' origin is set out in the document's executive summary:

"In October 2021, the Philippine Amusement and Gaming Corporation (PAGCOR) Board of Directors approved the Implementing Rules and Regulations for Online Poker Operations"
PAGCOR, Implementing Rules and Guidelines for the Licensing of Online Poker Operators and its Platforms1

The same summary states the rules "was amended in April 2022" and that the framework aims to license online poker operators to operate legally in the Philippines and provide safeguards for Filipinos playing poker on an online platform1. It adds that the pandemic prompted poker room operators to explore other ways to keep operating, and that online poker sites were already accessible in the country without regulation1.

Under the licensing section, only corporations registered with the Securities and Exchange Commission, whose primary purpose is "gaming" or "engaged in operating poker games", may apply as a PAGCOR-licensed OPO1. Applicants must show 50 million pesos in authorized capital stock and 12.5 million pesos in paid-up capital, and pay a non-refundable, non-transferable application fee of ₱1,000,000.001. Each applicant is to have only one website for its operations, registered with PAGCOR1.

Platform rules require that the online poker platform not be accessible outside the Philippines and not accept bets from outside the country, with an Internet Protocol blocking certification from an independent gaming laboratory1. Player data must be retained for five years1. Random number generators must pass the DIEHARD test suite, the NIST Statistical Test Suite, or a similar test suite of the same level1. Only people aged 21 and above may register, and a registered player may hold only one account per platform1.

ItemRequirement
Minimum initial buy-in or deposit₱1,000
Additional top-up or buy-inMinimum ₱500, divisible by ₱500
Rake from each pot3% to 5%
Withholding tax on individual payouts above ₱10,00020%
Performance cash deposit₱20 million
License validityThree years from commencement of operations
PAGCOR share on initial implementation10% of total collection
Third-party audit fee10% of PAGCOR share

The table figures come from the rules' financial considerations and platform sections1. The document also states that where applicable, information must be available to the player on their gaming account for at least 90 days1.

What it means for players

The rules apply to online poker played in the Philippines, not to land-based poker rooms. Players must be at least 21 and may hold one account per platform1. Deposits start at ₱1,000, top-ups at ₱500, and rake is capped between 3% and 5% of each pot1. Payouts above ₱10,000 carry a 20% withholding tax1. Because platforms are barred from serving users outside the Philippines and must block foreign IP addresses, players connecting from abroad are outside the licensed market this framework creates1. The rules also require platforms to publish responsible gambling information and a process for reporting collusion, cheating and suspected bot use1.

What happens next

The document sets out a licensing process rather than a schedule of announcements. Applicants must submit a letter of intent to PAGCOR's Chairman and CEO, complete documentary and system requirements, pass a probity check, and post the ₱20 million performance cash deposit1. Licenses run for three years from commencement of operations1. No date has been reported for the grant of the first license under these rules. For background on how the Philippines fits with other markets, see Gambling Laws in Asia: What Is Legal in 12 Jurisdictions and Gambling Regulators and Licenses in Asia: Who Licenses What and How to Check.

Sources1 sources
  1. implementing-rules-and-guidelines-for-online-poker-operators.pdf, pagcor.ph