The Philippines is one of the largest, regulated, online gambling markets in Asia. But operators and suppliers must tread carefully…
Asia has what it takes to become the largest online gambling market in the world. But at present, the continent is a bit of a regulatory minefield, making it difficult for pioneering operators to get in on the action in a sensible and sustainable way.
There are a few markets, however, where frameworks are in place and online gambling is legal. Perhaps the most prominent of those is the Philippines, which is overseen by the Philippine Amusement and Gaming Corporation (PAGCOR).
PAGCOR has recently been given the power to hand out Philippine Offshore Gaming Operator (POGO) licences to online operators looking to ply their trade in the country, making it one of the only regulated online markets in Asia.
Online operators can also obtain a licence via First Cagayan, but to do so they must be based in the Cagayan Economic Zone Authority. But the long-term role of First Cagayan is uncertain now that government-backed PAGCOR can dish out online licences itself.
This has seen some switch from a First Cagayan licence to a PAGCOR POGO, but at present it doesn’t matter which permit operators use so long as they have at least one in place.
If they don’t, they run the risk of being ejected from the market via a lengthy prison sentence now that Philippine President Rodrigo Duterte has made clear his stance on “illegal” online gambling in the country.
And while Duterte’s modus operandi is occasionally unorthodox and often unpredictable when it comes to running the country, the dust is now settling on the Philippine gambling industry and a clear picture is starting to emerge.
In short, the government is happy for regulated online gambling to take place, so long as operators hold a PAGCOR POGO or a First Cagayan permit, and so long as they are paying the correct taxes.
Steps have also been taken to clarify rules and regulations for operators and suppliers, and to ensure they are robust, fair and up to the task of establishing and protecting the integrity of online gambling in the country.
The changes have certainly had the desired effect; PAGCOR recently said it would hand out another batch of POGO’s after the first 35 were snapped up, while First Cagayan continues to issue licences to operators and suppliers.
But for those looking to march into the Philippines as a prelude to a wider roll-out across Asia, it is worth considering the geopolitical factors that continue to rock the country and its gambling industry.
The only thing certain about gambling in the Philippines is uncertainty; but with a solid regulatory framework starting to emerge, and operators and suppliers being held accountable to proper standards via licensing, long-term stability looks likely.
Of course, operators and suppliers considering making a play in Asia would be wise to work with established content and platform suppliers who understand the market, and how to successfully clear the regulatory minefield.
Here at Flow Gaming we have been focused on the Asian market for a number of years now, and have the experience to ensure operators can obtain the necessary permits and approvals, and to launch with a portfolio of blockbuster games.
For suppliers looking to put their content in front of Asian operators, we can facilitate this via our powerful game aggregation platform, which we have just strengthened with slots from NetEnt after becoming their only authorised distributor in the region.
When it comes to online gambling in Asia, we have the experience, knowledge, and local understanding to not only open the door for our partners, but ensure they have the necessary tools to build a successful and sustainable presence in the region.
The stage is very much set for the thrilla in Manila, but it’s now down to operators and suppliers to step into the ring.