Licensing Jurisdiction
PAGCOR is the only entity authorized to regulate the gambling industry in the Philippines. That includes issuing licenses to online gambling platforms. However, acquiring this license doesn’t mean you can offer online gambling services to Filipinos. That’s because it’s against the law for an independent iGaming company to provide online gambling services to the locals. But offshore operators with no strings to this country can offer gambling services to Filipinos.
This law has created a monopoly, allowing PAGCOR to offer gambling at land-based casinos. For “online” gambling, players are forced to visit e-Games Stations (PEGS). The stations are operated by PhilWeb.
To acquire an online gambling license to operate in the country, you must incorporate your business in the Philippines. This will then initiate the process to acquire a gambling license. KYC (Know Your Customer) and due diligence policies are part of the requirements by the Philippine authorities.
The operator must also provide information about the Ultimate Beneficial Owner. Furthermore, the iGaming site must provide details about the games it intends to offer. The final step will be to acquire transit server equipment. This will allow the regulator to monitor the site’s activities. The PER (Permanent Establishment Requirement) requires hardware to be in the Philippines.
The Main Focus of The Philippine Amusement and Gaming Corporation (PAGCOR)
PAGCOR requires all its licensees to offer gambling services in a responsible manner. This is according to Presidential Decree No, 1869. Operators must comply with the Code of Practice that sets out the rules and regulations regarding responsible gaming. This includes minimizing potential harm to not only the players but also the community at large. Prohibiting underage gambling, and preventing gambling addiction are also part of the guidelines. Gambling is prohibited to persons under the age of 21. Gaming venues and websites must also implement player exclusion programs.
Counter-Terrorism Financing Regulations, the Unusual Transactions Act, Know Your Customer Policies, and the National Anti-Money Laundering Regulations must be met as well. To ensure compliance, the regulator conducts audits often. When it comes to data protection, a PAGCOR casino must adhere to the country’s laws on data privacy. This includes the Data Privacy Act 2012 that guarantees players’ personal data privacy. Furthermore, operators must comply with the Data Privacy Policy regulations by PAGCOR.
Security at Online Casinos Licensed by The Philippine Amusement and Gaming Corporation (PAGCOR)
In line with the Data Privacy Policy by PAGCOR and the Data Privacy Act 2012, operators licensed by this regulator are obliged to secure their sites to protect players’ personal data. Most of the operators rely on the industry-acclaimed SSL encryption technology.
There doesn't seem to be any dispute resolution mechanism put in place by PAGCOR. However, aggrieved players can send their complaints via email. This shows the regulator’s willingness to help players find amicable solutions. Having said that, since Filipinos access offshore platforms for online gambling, it’s possible to find sites with internal dispute resolution mechanisms. They could also be in partnership with independent arbitrators.
