The changing patterns in casino and gambling

I was in Macau recently to look at the premises of Galaxy. Since there are different interpretations of what it is I feel obliged to give an eyewitness report.

The Galaxy Macau is hardly a billionaires’ playground. It is a township open to the public and since it was a Sunday the visitors were mostly families with their children in tow.

Yes there were areas reserved for casinos where customers, hardly billionaires, were playing. I noticed less people playing on the slot machines but the tables for baccarat were all occupied so I asked my hosts why is that? He said that in Macau playing baccarat was preferred. Again, none of those playing looked like billionaires. They were wearing casual clothes of ordinary people.

So we are working with misconceptions if we think a casino is a place for gambling only. It is a township with parks, condos and exhibition halls. For the moment there are gambling rooms and that is what is generally known as casinos. I recently visited an independent resort in entertainment city in Manila and the house was full not because of the gambling but because the musical “The Lion King” was showing for an extended tour.

Technological innovations are changing our activities. Think of how shopping or even going to office are slowly disappearing because of computers and cellphones. The same is true with gambling.  One does not have to go to a casino to gamble. The fastest growing aspect of gambling is to do it online. You can do it at home and you can choose which games to bet on.

Pagcor Chairman Andrea Domingo said that government revenue from Philippine Offshore Gaming Operations (POGO) is expected to nearly double this year from P3.4 billion in 2017 to P6 billion. 

“I’m really confident that this industry is going to take off. For me this is a very good situation, we really want to get support from Pagcor [Philippine Amusement and Gaming Corporation],” said Brian Ang, president of Manila-based online casino Oriental Game. “We expect the Philippines’ offshore gambling sector to register a strong growth this year, as operators are expanding on the back of increasing popularity of i-gaming.”

Ang said the government’s P6-billion revenue target for its (POGO) scheme is attainable, citing the industry is just starting to take off.

Domingo however made it clear that the industry remains strictly regulated by the government and cannot be accessed by local residents.

“Only foreigners outside the Philippines can play our licensed e-casinos. We have no plans to open it to local players,” she said.

Currently there are 55 POGO licensed operations in the country. Of which, 45 are online casinos and 10 sports betting operators.

“We’re projecting P6 billion because we have this new audit provider. They’re now installing the application, which integrates the systems of online casinos and Pagcor. We can now see real time bets.” 

Meanwhile, Domingo said that Pagcor will cap the number of its online gambling licenses at 50 until it can determine whether there is enough demand to meet the supply.

“We’re very strict to the quality, we won’t allow fly-by-night operators that once they get hit, they don’t pay and transfer, put another name. That happened before – a lot of it. That will not happen this time,” Domingo said.

Sought for comment about Pagcor’s cap on POGO, Ang said he is supporting the government’s decision. 

The key to the success of POGO will rely on the third party auditor. 

President Rodrigo Duterte, upon taking office in June 2016, noted lax regulation of the industry and weak government collections.

To date, registered offshore gaming operators number 42 since POGO was established in September, with 44 more pending for PAGCOR approval.

However, actual revenue is still unclear as POGO is still in the process of installing an audit system to accurately and automatically account for actual revenue from the online gaming industry.

Pagcor assistant vice president Jose Trias said that as a result POGO won’t go all-out in accepting more industry entrants as it is focusing on the development of the audit system first. 

 “The PAGCOR board is going slow on really opening up POGO because we want the audit system ready, in place to monitor them. So everything should be put in place first, then we open up (the industry),” he said.

Aside from the audit system, he said that POGO is also developing a probity check to ensure clean operations. 

“We are prioritizing our audit system then the probity check, so we can see the connections of those applicants since it is possible that money laundering is involved. So we are getting independent probity checkers.”

As the mobile gambling industry is said to be worth $100 billion at the end of 2017, we take a look at how the gambling industry has grown and the part technology has played in the development of the betting industry.

We still have to see the impact of technology on gambling but it is happening whether we like it or not.

“Gambling is the process of playing a game for money, and typically involves placing bets or playing the odds in the hope of winning. Gambling is still incredibly popular due to the positive feelings or adrenaline rush gained from taking a risk – and this allure hasn’t changed since its invention. Despite the changes in the industry from the rise of technology, gambling and betting has continued to be a popular pastime and hobby.

“From dice rolling and playing cards in 100 AD to a city of casinos and unmanned betting shops with touch screen kiosks in the 21st century, it is evident that technology has changed the way people play. Dissecting the history of gambling and the platforms that support it provides insight into how and why technology has influenced this activity. ”(Sourced from Asia Gaming Briefings)