About PAGCOR

The Philippine Amusement & Gaming Corporation is a 100 % governmen t-operated government company that reports directly to the Philippines.

The Corporation was established by the presidential decree of President Ferdinand Marcos (then), which was asked by the Philippine government to deal with illegal casinos increasing throughout the Philippines.

The main mission of the bureau is to issue a gaming license for casino management. He is also certified for suppliers, guarantees the gaming employment permit of all employees of gaming facilities, to enforce cautious gaming acts, and to operate the License Foundation.

Pagcor's second mission is the Filipino government's social and citizen activity and the national development program funding and promoting the Philippine Tourism Industry, the Chance Games, Card Games, and Casino Games, especially casino games in the Philippines. , Operation, approval, and licensing.

Casino Operations And Revenue

Pagcor was established to legalize the Philippine gaming and is now the third largest revenue agency in the Philippines. Through history, the Philippines is a gaming industry pioneer and has established a local hub.

The regulatory agency manages nine casinos spreading on three major islands in the Philippines. These stores, known as casino Philippines, are strategically placed in major tourist spots. It also operates 32 satellite casinos in major cities on three major islands.

By 2028, Pagcor is expected to increase the profit of $ 12. 5 billion from the gaming business, solidifying its position as a local influential person and expanding its role as a major partner in national construction.

Regarding the land casino industry, Pagcor creates an environment that promotes the gaming of the Philippines and the growth of the entertainment industry, and has become a quick partner in the Philippine government in the National Construction Program, and establishes a regulation framework to protect the gaming industry. We are aiming to implement it.

Social Responsibility

Pagcor has implemented a larg e-scale CSR project under the leadership of the current administration, in addition to donations to various organizations and institutions. < SPAN> Philippine Amusement & Gaming Corporation is a 100 % governmen t-operated governmen t-operated government company that reports directly to the Philippines.

The Corporation was established by the presidential decree of President Ferdinand Marcos (then), which was asked by the Philippine government to deal with illegal casinos increasing throughout the Philippines.

The main mission of the bureau is to issue a gaming license for casino management. He is also certified for suppliers, guarantees the gaming employment permit of all employees of gaming facilities, to enforce cautious gaming acts, and to operate the License Foundation.

Casino Operations And Revenue

Pagcor's second mission is the Filipino government's social and citizen activity and the national development program funding and promoting the Philippine Tourism Industry, the Chance Games, Card Games, and Casino Games, especially casino games in the Philippines. , Operation, approval, and licensing.

Pagcor was established to legalize the Philippine gaming and is now the third largest revenue agency in the Philippines. Through history, the Philippines is a gaming industry pioneer and has established a local hub.

The regulatory agency manages nine casinos spreading on three major islands in the Philippines. These stores, known as casino Philippines, are strategically placed in major tourist spots. It also operates 32 satellite casinos in major cities on three major islands.

By 2028, Pagcor is expected to increase the profit of $ 12. 5 billion from the gaming business, solidifying its position as a local influential person and expanding its role as a major partner in national construction.

Regarding the land casino industry, Pagcor creates an environment that promotes the gaming of the Philippines and the growth of the entertainment industry, and has become a quick partner of the Philippine government in the national construction program, and establishes a regulation framework to protect the gaming industry. We are aiming to implement it.

Pagcor has implemented a larg e-scale CSR project under the leadership of the current administration, in addition to donations to various organizations and institutions. The Philippine Amusement & Gaming Corporation is a 100 % governmen t-operated government company that reports directly to the Philippines.

The Corporation was established by the presidential decree of President Ferdinand Marcos (then), which was asked by the Philippine government to deal with illegal casinos increasing throughout the Philippines.

The main mission of the bureau is to issue a gaming license for casino management. He is also certified for suppliers, guarantees the gaming employment permit of all employees of gaming facilities, to enforce cautious gaming acts, and to operate the License Foundation.

Pagcor's second mission is the Filipino government's social and citizen activity and the national development program funding and promoting the Philippine Tourism Industry, the Chance Games, Card Games, and Casino Games, especially casino games in the Philippines. , Operation, approval, and licensing.

Casino Operations And Revenue

Pagcor was established to legalize the Philippine gaming and is now the third largest revenue agency in the Philippines. Through history, the Philippines is a gaming industry pioneer and has established a local hub.

The regulatory agency manages nine casinos spreading on three major islands in the Philippines. These stores, known as casino Philippines, are strategically placed in major tourist spots. It also operates 32 satellite casinos in major cities on three major islands.

By 2028, Pagcor is expected to increase the profit of $ 12. 5 billion from the gaming business, solidifying its position as a regional influential person and expanding its role as a major partner in the construction.

Regarding the land casino industry, Pagcor creates an environment that promotes the gaming of the Philippines and the growth of the entertainment industry, and has become a quick partner in the Philippine government in the National Construction Program, and establishes a regulation framework to protect the gaming industry. We are aiming to implement it.

Pagcor has implemented a larg e-scale CSR project under the leadership of the current administration, in addition to donations to various organizations and institutions.

PACGOR also sets the responsible gaming standards and guidelines for all approved businesses to be operated and approved by Pagcor, and reduces the risk of harm to individual players and local communities. We prevent gambling poisoning and prohibit minor gambling.

PACGOR focuses on creating funds for national construction through transparent and responsible gaming management and regulations. For all the stakeholders, the team aims to provide hig h-quality services, eliminating bureaucracy at all levels, with the best professionalism and attention.

Gaming Industry in the Philippines Part II – Online Gaming

SIGMA believes that gaming is a thriving industry in the Philippines, so connection with the Philippine regulatory agencies is essential.

Background

The Philippines is also known as a country of sightseeing, entertainment, and hospitality, and players from overseas not only play, but also visit the Philippines to experience other attractions. Currently, the rise of integrated resorts and casinos has also taken a comprehensive approach to amusements.

Pagcor, the representative of Pagcor Chairman Alejandro Tenko and CEO, has been actively participating in various events in Sigma and providing powerful support.

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In 2023, SIGMA Asia was held for the first time in the Philippines, and Manila was selected as a thre e-day Expo and conference venue.

The game industry, especially Pagcor, played an important role in securing the economic future of the country after Cobid 19, and fully understood how difficult it would be to keep rolling the ball at difficult times.

Pagcor at that time stated positively that collaboration with SIGMA promotes regional and international investment in the Philippines and emphasizes the presence of regulated organizations on international gaming maps.

PHILIPPINE AMUSEMENT AND GAMING CORPORATION (Pagcor) officially announced support and congratulations on SIGMA that it "maintains a reputation as one of the world's leading hubs in everything involved in the Igaming industry". He emphasized that it attracts operators, providers, IT experts, innovators, entrepreneurs, and investors.

TENGCO also welcomes the development of local gaming sector to support "continuously move forward, open up the way, and create more opportunities."

Legal Aspects of the Philippines Online Gaming Industry

"SIGMA's 2023 Expo functions as a sightseeing gateway to the Philippines, and advertises the Philippines as a destination for the best games and entertainment for potential investors."

Pagcor has also appeared in the cover story of Sigma Magazine No. 12. In an exclusive interview with the team, the former chairman and CEO Andrea Domingo have a fair stadium in the Philippines, and the industry is very wel l-regulated by Pagcor, so the game company will be in the Philippines. I opened my mouth about the importance of relocating.

She uses Sigma Magazine to send a message that the Philippines has an open concept for foreigners and is kind. It is well known that Filipinos are competent in the gaming scene, read and write, and interact with players.

Pagcor believes that participating in events like SIGMA can learn from other gaming regulatory organizations and operators. Such events not only benefit the government from gaming fees and taxes, but also trigger economic activities.

SIGMA intends to use gaming and interest in emerging technology in Asia by combining his efforts.

Southeast Asia, especially Manila, has a thriving entrepreneur culture, and is not only for companies seeking new opportunities in new jurisdictions, but also for the future of the region's economy.

Real Estate Observations of the Philippine Online Gaming Industry

The SIGMA Group wants to play an important role not only to connect Asian and European communities, but also to establish lon g-term commercial relationships. Pagcor's purpose is to manage various departments of gambling business under jurisdiction, guarantee fair and transparent gaming for players, avoid crime, corruption, and money launding It is to protect people and weak players.

Tenko also appeared for the first time in the SIGMA magazine and is planning an exclusive interview in the 2023 SIGMA Asian version.

In the second part of the tw o-part articles on the Gaming Industry in the Philippines, focus on the Philippine online gaming industry. Along with the casino field featured in the first part, the online gaming industry is very important for the Philippine economy. This paper also mentions this slightly complicated and subtle investment opportunity in the industry.

The Philippines is an interesting and relatively new market for online gambling. There are two distinct regions within the country that are intended for gambling. The Philippine Amusement and Gaming Corporation (PAGCOR), owned by the Philippine government, controls most of the Philippines, where gambling is administered. As mentioned in Casinos, PAGCOR operates land-based casinos and betting halls throughout the country.

The second region is the Cagayan Economic Zone Authority (CEZA) and Freeport. This is primarily based around the previously mentioned Manila Entertainment Complex and borders Manila Bay. This is the only region in the Philippines that is not under full PAGCOR control. The Freeport area is home to a number of independent casinos that primarily target foreign tourists.

The Cagayan Freeport also serves as a licensing jurisdiction for online gambling, being the only such jurisdiction in Asia. Gambling licenses in the Philippines are difficult to obtain and do not allow operators to accept bets from Filipino nationals. However, obtaining a CSEZ license gives operators access to the rapidly expanding Asian market, especially China.

PAGCOR announced that it is currently reviewing 44 POGO (Philippine Offshore Gaming Operator) applications for new licenses in the Philippines. This is in addition to the 45 applications that PAGCOR has already approved.

In March, PAGCOR announced that approval of the issuance of additional POGO licenses would help it achieve its 2017 revenue target of 60 billion pesos (US$1. 17 billion) to 65 billion pesos (US$1. 27 billion). PAGCOR also acknowledged that before fully opening up the online gaming market, the PAGCOR audit system, which tracks and monitors the operations of gaming operators, must be rapidly and extensively updated with the procurement and installation of appropriate audit equipment and technology. PAGCOR acknowledges that there is confusion in the audit facilities, mainly due to differences in the operations of CEZA and PAGCOR. This is currently being resolved, according to PAGCOR.

Some Problematic Issues with the Philippine Online Gaming Industry

Pagcor has already been previously reported that Pagcor has already collected more than 1 billion pesos (US $ 19. 63 million) licensed fees and processing fees as a result of 35 offshore gaming licenses issued in 2016. The commission for each license application is Pagcor for US $ 50, 000 for the application and processing of the e-casino businesses and US $ 40, 000 separately for sports betting. When the license is approved, an additional charge is charged for the US $ 200, 000 for the e-casino and a US $ 150, 000 charges for sports betting. With the issuance of additional licenses, it is estimated that profits will increase to 3 billion pesos (US $ 58. 9 million) by 2018.

According to gaming analysts, the Philippine gaming sector has been optimistic about the future growth due to the improvement of the domestic economy, which contributes to the growth of the sector's total income (GGR). The Philippines is the main market for online games due to the increase in economic investment and inflow of game funds. In the online game industry, the inflow of funds from China is increasing rapidly, which will lead to an increase in GGRs. According to Pagcor's financial data, the number of sales increased by 18 % to 118 billion pesos (US $ 231 billion) in the third quarter of 2016 ($ 193 billion) in the third quarter of 2015.

Pagcor List of Approved Philippine Offshore Gaming Operators (POGO) as of August 16, 2017

• It is necessary to consider the law on online games in the Philippines. In both the Philippine gaming areas (Pagcor and CEZA), it is illegal for independent gaming operators to provide online betting to the Philippines. However, offshore gaming providers, which have nothing to do with the Philippines, can provide online gaming services to the Philippines.
• To put it simply, the Philippines has two different laws. Filipino people have no laws to prohibit online gambling. However, a lot of discussions have been held in Congress and Senate regarding the legality of betting through the Internet. The 2012 Supreme Court's ruling was determined that there was no Philippine law in which gambling was illegal. Therefore, the Filipino people can theoretically use online game facilities.
• However, online game operators must comply with different laws. Online game sites that have a license in the Philippines cannot provide services to the Filipino people. Pagcor issues a license and monitors all existing licensing compliance. If you are a registered company, you can get a license by paying the above fee. Therefore, license holders can provide services to anyone outside the Philippines. The advantage of the Philippines is that it is close to other regions in Asia, and the improvement of the development level in the Philippines has improved the Philippines for potential investors who are interested in entering the online game market in Asia. Is an attractive base.
• All gaming systems must be reviewed and approved by Pagcor, and gaming companies must hold enough money to cover all players. The Pagcor License Committee has received high praise for strictly execution of these regulations.
• It is clear that the gaming industry introduced by the Philippines has a contradictory law and is indispensable to enter a very promising investment field. However, it has been found that avoiding legal issues for investors and the Filipino regulatory authorities is complicated. The term "online gaming or offshore gaming" refers to an Interne t-based gaming activity that is compatible, registered as a gaming operator and opened an account.
• According to Pagcor's provisions, only foreigners, 21 or older, can participate in the Philippine s-based online games. Pagcor also states that it is not legally allowed to access the Philippin e-based online game operators in the Philippines in the Philippines or legally living in the Philippines. I am. Gaming operators may be a company based in the Philippines, or may be a foreign company based outside the Philippines. The latter is presumed to be a gaming company that can provide gaming services in the Philippines, or a foreign operator that has a part of the business in the Philippines. It is found that this law is ambiguous and is currently spurning confusion, but the work to solve this legal turmoil is underway.
• The online game business basically requires only the same space and infrastructure requirements as the business processing outsourcing (BPO) industry, so it can easily comply with existing office real estate conditions in the Philippines. It attracts investors who do not need to invest in the construction project. For the Philippines, which faces competition with other countries such as India and China, it will be an alternative to hire a BPO labor for speaking English, and it will be a certain tax revenue source.
• The real estate industry in the Philippines recognizes that the online game industry in the Philippines is a "newcomer" in terms of occupancy in the office, and is expected to challenge the current major office user BPO business. I am. Currently, both sector is leading office demand nationwide, and is expected to be from 1. 2 million to 1. 5 million square meters in 2017. Of these, the online game industry is estimated to occupy an office space of about 400, 000 square meters to 500, 000 square meters. The rapid increase in office space required by the online game industry has increased to nearly 50 % of the BPO office category from the recent zero. The real estate industry in the Philippines now predicts that the online game industry will need the same office space as the BPO industry by 2018. For example, the Manila metropolitan area accounted for 84, 000 square meters out of office spaces in which the sector available in the past six months. This number will rise according to the license application currently under consideration.
• In addition, in the real estate industry, these gaming companies have been found to be able to subscribe to eight su b-franticuises, and as a result, each gaming company can rent extra office space of 10, 000 to 20, 000 square meters. It is estimated to have sex.
• In addition, it has a trickle down effect. The online game industry has contributed to the increase in luxury housing in major areas in the Metropolitan area. This is because the number of foreign managers of the game company increases and needs extra accommodation. As a result, restaurants, bars and social sites are increasing. It also affects regional office spaces that focus on BPOs, such as Cebu, Dumagett, and other areas of Luzon and Bisaya.
• Currently, there are 1. 1 million employees working in the BPO outsourcing sector, which is expected to grow to 1. 8 million by 2020. 70% of this growth is expected to come from Metro Manila, while the remaining 30% will come from the rest of the country. This amount of office space growth will require an additional 3 million square meters of office space across the country. This is the estimated demand for the BPO sector and does not include the relatively new gaming industry sector.
• According to the real estate industry, the current office space supply is 10. 3 million square meters, of which Metro Manila accounts for 8. 8 million square meters (85%), while existing office space outside Metro Manila accounts for 1. 5 million square meters (15%). The current plan for the increase in office space expected to be available by 2023 is a total of 5. 4 million square meters, of which Metro Manila will account for 4 million square meters (74%) and the rest will be in other cities in the Philippines.
• Another related aspect is the growing young population (currently in their 20s) and the expansion of English-speaking countries in the Philippines. Gaming companies look to this when searching for locations and access to potential employees.
• As a result, despite legal issues, the online gambling industry is becoming more and more popular, which is also impacting the real estate sector in the Philippines. Recently, it was reported that the online gambling industry is driving office demand in the Philippines after the BPO industry.
• Aside from the confusing and overlapping laws that are currently being reviewed, as mentioned above, the online gaming sector is also problematic because there are many different types of businesses with different jurisdictions depending on the business they are conducting. This has led to some differences between PAGCOR and other government agencies, especially the Philippine Economic Zone Authority (PEZA). It is also important to note that the Philippines has proven vulnerable to cybercrime. Online gaming is an attractive target, and the Philippine digital security framework, from both a physical and regulatory standpoint, is encouraging the country to improve its IT security and access.
• PEZA has raised objections to the online gaming sector and has made it clear that it may consider decertifying PEZA-accredited buildings that house online gaming-related companies. This is because PEZA has expressed the view that it is difficult to enforce regulations applicable to gaming companies because the online gaming industry has many related entities, such as software providers, BPO providers, data and content streaming providers, system support providers, marketing and customer relationship service providers, and may provide services to customers outside the gaming industry. The relevant government agencies are trying to resolve the issue in order to monitor and control a business sector that lacks reliable and up-to-date data. This reflects the current issue surrounding PAGCOR's audit system mentioned earlier. It is expected that this issue will be resolved once PAGCOR acquires and deploys a modern audit system. Oriental Games, Inc.
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