Cebu eyed by online gaming companies

CEBU, Philippines — Cebu is among the hottest targets of online gaming companies planning to expand their operations in the Philippines.

Latest survey report released by Colliers International Philippines yesterday revealed that offshore gaming firms are continuously expanding and looking for office buildings with large floor plates, and Cebu is one of the top choices among operators.

As of 3Q 2018, Colliers recorded 4.8 percent vacancy across Metro Manila, which is driving offshore gaming firms to look for space outside Manila.

“We encourage new and expanding offshore gaming companies to continue looking for space in Cebu, Pampanga, and Laguna where bulk of large space is still available.”

  Already, these firms have also started to take up office spaces in key cities outside Manila such as Cebu, Laguna, and Clark in Pampanga.

Aside from expansive office space and residential availability, offshore gaming companies need to operate in cities that have airports offering direct flights to China or areas that have direct access to and from Manila. This is one of the reasons why these firms are starting to look at a number of cities in Southern Luzon.

For 2019, Colliers projects offshore gaming firms occupying between 200,000 sq m to 300,000 sq metres (2.7 million sq ft) of office space, representing about 20-23 percent of projected take-up in 2019.

The Philippine Amusement and Gaming Corporation (PAGCOR) expects Philippine Offshore Gaming Operators (POGOs) to account for additional revenue of P6 billion only for this year.

In 2016, PAGCOR issued rules and regulations covering the operations of POGOs.

A POGO refers to an entity that offers and participates in offshore gaming services by providing games to players, taking bets, and paying the winning players. The gaming activity refers to online games of chance through the internet, using a network and software, exclusively for offshore-authorized players who have registered and established an online gaming account with the PAGCOR-licensed POGO.

PAGCOR can issue a POGO license to qualified operators, which could be Filipino-based operators or foreign-based operators.