PAGCOR sets new rules on internet gaming operations

Iris Gonzales - The Philippine Star

MANILA, Philippines — The Philippine Amusement and Gaming Corp. (PAGCOR), the country’s gaming regulator, has tightened rules on online gaming,aimed at maintaining the highest standards of integrity.

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.

The stricter rules require higher capital requirements and a provision that requires all existing internet gaming operators and service providers to re-apply for new licenses starting July 17, 2023.

All license renewals shall be subject to continued compliance of the licensee with all the rules and regulations and other application laws.

There is also a catch-all provision that prohibits licensees from conducting activities other than gaming in the operating sites and being involved in any activity that jeopardizes PAGCOR’s integrity.

Pagcor’s new internet gaming licensing regulations require, among others, that an internet gaming licensee must have an authorized capital  of at least P100 million, of which P25 million must be paid up.

This is higher than the previous capital requirement of only P15 million with P3 million paid up.

The licenses shall only be valid for two years and are site specific. This means that licenses outside of the exact address indicated are invalid.

The operating site shall have a maximum floor area of 25,000 square meters per site.

The new rules also defined the internet gaming license as a business-to-consumer license allowing the operator to offer or carry out online gaming products.

These games are limited to livestream e-casino games, online random number generator (RNG) games and online sports betting.

A minimum guaranteed fee for each licensee is set at $100,000 per month.

On the other hand, the new rules define a gaming content/support provider as business-to-business authorization to provide or carry out content or support services related to online gaming products to PAGCOR licensees.

A gaming content provider supplies or manages content of authorized games from live studios or live gaming venues via the internet, while a support provide includes customer service, marketing, customer registration, payment solutions, office leasing and other support services.

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