The Philippine Amusement and Gaming Corporation (PAGCOR) presented a new regulatory framework for offshore gaming at a Senate Committee Hearing on August 2, 2023, according to the agency's own press release1. PAGCOR's Assistant Vice President for Offshore Gaming Licensing, Atty. Jessa Fernandez, told the committee that under the framework, which has been in effect since July 2023, all licensees and service providers were declared under probationary status and directed to re-apply until September 17, 20231.
Fernandez said the framework widens the licensing requirement to service providers that take bets, and that PAGCOR will look at who ultimately owns the companies.
"In the present framework, all Service Providers who are accepting bets are required to apply for a license. We will also evaluate the beneficial owners of these companies so that they will be held liable in case they are found to be involved in any illegal activity"
She said entities found to have operated outside their granted license or accreditation will not receive a license under the new framework, and that licensees or service providers who do not re-apply or are not granted a license within the period will be endorsed for cancellation1.
PAGCOR said it has also been working with other government and law enforcement agencies to set up offices inside an accredited hub, and listed other reforms now in effect1:
- intensified inspection and verification of compliance by offshore gaming licensees and service providers1
- submission of reports to enforcement agencies for investigation and verification of findings1
- enhanced coordination with relevant government agencies1
- stricter enforcement of regulations with heavy penalties for violations1
The agency said it instituted stricter sanctions on all erring licensed offshore gaming operators and accredited service providers1.
The release does not state how many licensees or service providers are affected, what the new license terms or fees are, or which agency runs the accredited hub. Those details have not been reported in the release1.
What it means for players
The framework applies to the companies that run and supply offshore gaming operations, not to individual bettors. For players in the Philippines and abroad who use PAGCOR-licensed offshore operators, the practical effect is that the operator's or its service provider's right to keep running depends on a fresh application decided by September 17, 20231. An operator that does not re-apply, or is refused, is to be endorsed for cancellation, which would end its licensed status1. PAGCOR says it will assess beneficial owners and hold them liable for illegal activity, and that operators found acting outside their license will not be licensed1. The release does not say what happens to customer funds or pending withdrawals if a license is canceled; that has not been reported1.
What happens next
The re-application window runs until September 17, 20231. After that date, PAGCOR says licensees or service providers that did not re-apply or were not granted a license within the period will be endorsed for cancellation1. PAGCOR also says it is working with other government and law enforcement agencies on offices inside an accredited hub, without giving a date1.
For background on how licensing works in the region, see Gambling Regulators and Licenses in Asia: Who Licenses What and How to Check and Offshore Gambling Licenses and What They Mean for Players in Asia. For the Philippine market specifically, see Can I Gamble in the Philippines? and How to Check a PAGCOR Gaming License.
