E-Gaming Landscape in the Philippines

      Comments Off on E-Gaming Landscape in the Philippines

When the combined country’s online gaming business with the casino sector, the e-gaming industry is extremely important to the national economy. In this article, I will identify possible investment opportunities in a relatively complex and delicate industry.

Background

The Philippines is an interesting and relatively new online gaming market. For gaming purposes, the country has two different regions. The Philippines Entertainment and Gaming Corporation (PAGCOR) controls gaming in most parts of the Philippines, and gaming is controlled by the government-owned PAGCOR. As previously mentioned in the casino industry, PAGCOR operates its land-based casinos and gaming outlets nationwide.

The second area is the Cagayan Economic Zone Authority (CEZA) and Freeport, which most people refer to as “Cagayan Free Port”. This is mainly located at the aforementioned Manila Entertainment Centre, adjacent to Manila Bay. This is the only area in the Philippines that is not under the full control of PAGCOR. In the Freeport area, there are many independent casinos mainly targeted at foreign tourists.

Cagayan Freeport also serves as an online gaming licensing jurisdiction and is the only such jurisdiction in Asia. Filipino gaming licenses are difficult to obtain and do not allow operators to accept bets from Filipino citizens. However, CSEZ is licensed there to gain access to the larger Asian market, a rapidly expanding market with a focus on China.

PAGCOR said they are currently reviewing applications from 44 Philippine Offshore Game Operators (POGOs) for companies applying for a new license in the Philippines. This is in addition to the 45 applications approved by PAGCOR.

In March, PAGCOR announced that issuing additional POGO licenses, if approved, would support PAGCOR to achieve a target of 60 billion pesos (1.17 billion US dollars) – a target of 65 billion pesos ($ 1.27 billion). ) For the year 2017, PAGCOR has also been informed. Market opening for online gaming PAGCOR monitoring systems that help monitor and monitor the operation of gaming operators need to be updated quickly and covered by the procurement and installation of the correct monitoring equipment and technology. PAGCOR is recognized as having confusion with its inspection facilities, mainly between operational differences between CEZA and PAGCOR. Who controls. Currently being edited according to PAGCOR.

It was previously reported that PAGCOR has collected more than 1 billion pesos (US $ 19.63 million) from license fees and operating revenue from 35 offshore gaming licenses in 2016. These expenses For each license Casino service provider processing and $ 40,000 for separate sports betting which is charged by PAGCOR. Once the license is approved, an additional $ 200,000 will be charged for the e-Casino and US $ 150,000. For sports betting Expected by 2018, revenue will increase to 3 billion pesos (58.9 million US dollars) by issuing additional licenses.

Game analysts say that the growth of the Philippines’ optimistic gaming sector in the future is due to the improved domestic economy, which affects the growth of gross gaming revenue (GGR). Philippines is the main market for Play online games due to increased investment and game funds into the economy. Observers also say that Chinese capital growth is rising rapidly, even though the online gaming industry and will lead to an increase in GGR volume. PAGCOR’s financial data indicates that revenue is up 18% from the third quarter of the year. 2015, worth 98.6 billion pesos (1.93 billion US dollars) until the third quarter of 2016 when revenue was 118 billion pesos (2.31 billion US dollars)

Legal aspects of the Philippine online gaming industry

The Philippines’ online gaming laws do require a review. In two gaming regions in the Philippines (PAGCOR and CEZA), it is illegal for independent game operators to provide online gaming to Filipino nationals. However, offshore gaming providers who are not connected to the Philippines may offer online gaming services to Filipino nationals.

In short, the Philippines has two different sets of laws in operation. Philippine nationals are not subject to any laws prohibiting online gambling. However, there has been much debate in Congress and the Senate over the legality of betting over the Internet. In a 2012 ruling, the Philippine Supreme Court found that no part of Philippine law criminalized gaming betting. Therefore, Filipino nationals can theoretically use online gaming facilities.

However, online game operators must comply with different regulations. All online gaming sites with a business license in the Philippines cannot provide services to Filipino nationals. PAGCOR issues licenses and monitors compliance with all existing licensees. Any registered company can obtain a license as long as it receives the above-mentioned fees payable. Therefore, the licensee can provide services to anyone outside the Philippines. The advantage of the Philippines is that it is close to the rest of Asia and its level of development is constantly improving, which makes it an attractive operating base for potential investors interested in entering the Asian online gaming market.

All gaming systems must be reviewed and approved by PAGCOR, and gaming companies must hold a sufficient amount of cash to pay the balance of all players. The PAGCOR Licensing Committee has a strict reputation for implementing these regulations.

The gaming industry introduced by the Philippine government does have conflicting legislation. Obviously, professional legal advice is essential to enter a very promising investment industry. However, it turns out that for investors and Philippine government regulators, the operations around legal challenges are very complicated. The terms online games or offshore games are interchangeable and refer to Internet-based gaming activities that involve customers who register with a game operator and establish an account.

According to PAGCOR regulations, only foreign citizens living in different countries and over 21 years of age are allowed to participate in online games in the Philippines. PAGCOR also states that legally not allowing Filipino nationals here or abroad, or foreign nationals legally resident in the Philippines, to visit the Philippines’ online game operators. The game operator can be a company in the Philippines or a foreign company outside the Philippines. It is assumed that the latter refers to a gaming company that can provide gaming services in the Philippines, or a foreign operator that sets up some operations there. It is acknowledged that this legislation can be considered ambiguous, and while working to resolve this legal chaos is still ongoing, it is currently exacerbating chaos.

Real estate observation of the Philippine online gaming industry

The online gaming business can now basically easily adapt to the existing office real estate landscape in the Philippines, as it basically requires only the same space and infrastructure requirements as the business process outsourcing (BPO) industry, which attracts investors without requiring Funds for large construction projects. Facing competition from other countries, such as India and China, this also provides the Philippines with another way to hire its English-speaking BPO labor force, which is a reliable source of tax revenue for the Philippines.

The Philippine real estate community has recognized that the Philippine online gaming industry is now “newbie” in terms of office occupations and is expected to challenge the current major office user BPO business in the near future. At present, these two fields are driving the national demand for office space. It is estimated that by 2017, the demand for office space will be between 1.2 million and 1.5 million square meters. Among them, it is estimated that the online gaming industry will occupy approximately 400,000 to 500,000 square meters of office space. The rapid increase in office space required by the online gaming industry has increased from zero in recent years to nearly 50% of the current BPO office space. The real estate industry in the Philippines now expects that by 2018, the online gaming sector will be comparable to the BPO sector in terms of required office space. For example, over the past six months, the department has occupied 84,000 square meters of available office space in Metro Manila. This number will rise with current permit applications being considered by PAGCOR.

As of August 16, 2017, Pagcor Philippines Offshore Gaming Operator Approved List (POGO)

Oriental Game Ltd.

Far Eastern Capital Ltd.

Marco Polo Enterprises Ltd.

Imperial Choice Ltd.

Libo Consolidated Ltd.

Fortuneport Enterprises Ltd.

SC World Development Group Ltd.

Golden Dragon Empire Ltd.

VIP Global Solutions Ltd.

MG Universal Link Ltd.

AG Interpacific Resources Ltd.

BBIN International Ltd.

Eastern Hawaii Leisure Company Ltd.

PT Transpacific Company Ltd.

OG Global Access Ltd.

Dynamic System Ltd.

Leading Reward Ltd.

Kingwell International Group Ltd.

Defun Global Investment Ltd.

Inner Strong Ltd.

Four Leaf Technology Inc.

Smarc Group International Ltd.

Ximax Holding Ltd.

Puerto Galera Holdings Ltd.

New Wave Infotech Ltd.

Xionwei Technology Co. Ltd. Inc.

NewLink Pacific Ltd.

Pride Fortune Ltd.

OLE Group International Ltd.

Prestige IOM Ltd.

Wilshire Worldwide Company Ltd.

Wanfang Technology Management Ltd.

Giant Gains Solutions Inc.

Full Strength Trading Ltd.

Swanston Asia Inc.

Don Tencess Asian Services Solution Inc.

Vertex Digital Entertainment Technologies Inc.

Hyper Sports Media Ltd.

Winherld Entertainment World Ltd.

Blue Frog Contents & Support Inc.

Jolie Investments Ltd.

Sohu Expert Int’l Management Solutions Inc.

Micro Info Systems Ltd.

King Rich International Group Ltd.

Most Success International Group Ltd.

Most Successful International Group Limited

Conclusion

In short, the Philippines’ online game industry is “newbie” and is in danger of repeating the same mistakes! But speed and investment are amazing. The Philippines remains an ideal place for this huge profit-making industry, and the Philippines’ geographic location in ASEAN and Asia is critical when the region’s gaming industry has a large population. Real estate forecasts are very important and effective for the potential expansion potential of this high-margin industry. Of course, as I already mentioned, there are many problems to be solved, and this is always the case in emerging industries. However, many existing investors have accepted this, and the existing industry seems to be content and waiting for clarification and improvement.