The Philippine Amusement and Gaming Corp. (PAGCOR), the country's gaming regulator, has approved new rules governing the issuance of internet gaming licenses and their operations, requiring all existing internet gaming operators and service providers to re-apply for new licenses starting July 17, 20231. The board approved the rules in a memorandum dated July 10, 2023, according to a report by The Philippine Star1.
The new rules raise the capital requirement for an internet gaming licensee to an authorized capital of at least P100 million, of which P25 million must be paid up1. That is higher than the previous requirement of P15 million authorized capital with P3 million paid up1. Licenses are valid for two years only and are site specific, meaning a license is invalid outside the exact address indicated1. Each operating site may have a maximum floor area of 25,000 square meters1. A minimum guaranteed fee for each licensee is set at $100,000 per month1.
PAGCOR defines the internet gaming license as a business-to-consumer license allowing the operator to offer or carry out online gaming products, limited to livestream e-casino games, online random number generator (RNG) games and online sports betting1. Separately, a gaming content or support provider is defined as a business-to-business authorization to provide content or support services related to online gaming products to PAGCOR licensees1. A gaming content provider supplies or manages content of authorized games from live studios or live gaming venues via the internet, while a support provider covers customer service, marketing, customer registration, payment solutions, office leasing and other support services1.
The rules also include a provision prohibiting licensees from conducting activities other than gaming in the operating sites and from being involved in any activity that jeopardizes PAGCOR's integrity1. All license renewals are subject to the licensee's continued compliance with all rules and regulations and other applicable laws1.
"In a memorandum dated July 10, Pagcor said its board approved the new rules which shall govern the issuance of licenses on internet gaming as well as its operations."
| Requirement | Previous | New |
|---|---|---|
| Authorized capital | P15 million | P100 million |
| Paid-up capital | P3 million | P25 million |
| License term | Not stated | Two years, site specific |
| Minimum guaranteed fee | Not stated | $100,000 per month |
What it means for players
The rules apply to the companies that hold PAGCOR internet gaming licenses, not to players directly. The practical effect for people who gamble online in the Philippines is that the operators serving them must hold a license issued under the new terms, and a license now covers only the exact address stated on it1. The permitted product list is limited to livestream e-casino games, online RNG games and online sports betting1. The report does not state how re-applications will be processed, whether any operator will be refused, or what happens to players' funds or accounts with an operator that does not obtain a new license. Those points have not been reported. Players checking whether a site is licensed can use the Gambling Regulators and Licenses in Asia guide, and the Risks of Playing on Unlicensed Gambling Sites page sets out what an unlicensed operator means in practice. The Types of Gambling Licenses Explained page covers how B2C and B2B authorizations differ, which is the distinction PAGCOR draws between an internet gaming licensee and a gaming content or support provider1. For the wider regional picture, see Recent and Pending Gambling Law Changes in Asia.
What happens next
Re-applications open from July 17, 20231. Renewals depend on continued compliance with the rules and other applicable laws1. No deadline for completing the re-application process, and no date for decisions on the applications, has been reported.
