Philippines Experiences Increase in Gaming License Applications Following Exit from FATF Grey List
Fresh Take:
Hey there! The Philippines, off the Financial Action Task Force's (FATF) grey list, is witnessing a surge in interest for online gambling licenses. According to Alejandro Tengco, chairman and CEO of the Philippine Amusement and Gaming Corp (Pagcor), there's been a notable uptick in these queries post the FATF decision.
Tengco shared his insights at the ASEAN Gaming Summit in Manila. He pointed out that the regulator has been flooded with calls from companies eager for application guidelines and licensing details.
POGO Ban and its Aftermath
The Philippines' exit from the grey list, in part, was because of the decision to ban Philippine Offshore Gaming Operators (POGOs). Tengco underlined the significance of this move, stating it highlighted the country's commitment to combating money laundering and maintaining financial transparency.
"The ban on offshore online gaming providers played a pivotal role in the Philippines leaving FATF's grey list," Tengco said, "Showing our unwavering determination to safeguard the integrity of our financial system."
Although the ban presented challenges, it also opened doors. Tengco reported a rise in applications from special class business process outsourcing (BPO) companies providing backend services but not directly involved in gaming operations.
A Bloom in the Gaming Industry
In 2024, the Philippine gaming industry flourished remarkably, according to Tengco. Preliminary data suggested gross gaming revenue (GGR) to be over PHP410 billion ($7.16 billion), up nearly 25% compared to the previous year. While traditional casinos made a substantial contribution, the eGames and eBingo sectors saw remarkable growth.
Tengco expressed Pagcor's commitment to overseeing responsible gaming activities and technology-driven gaming, hinting at plans to fortify responsible gaming initiatives and mandate that licensees allocate a portion of their GGR for national development projects.
"These developments should instigate positive changes in the Philippine gaming industry," Tengco said.
In January, Pagcor slashed the remittance rates for online and on-site betting platforms from 35% to 30%, bolstering the sector's growth. With regulatory reforms and increased transparency, the Philippines' gaming industry appears set for further expansion.
- The surge in interest for online gambling licenses in the Philippines extends to various sectors, such as finance, technology, and fintech.
- In light of the improving financial transparency, the Philippines' exit from the grey list might attract investments from the business and banking-and-insurance industry.
- The ban on Philippine Offshore Gaming Operators (POGOs) has encouraged special class business process outsourcing (BPO) companies specialized in cybersecurity to participate in the gaming industry.
- The significant rise in the Philippine gaming industry in 2024 includes sectors like real-estate, as traditional casinos expand their properties to accommodate the growth.
- As the gaming industry grows, the stock market may experience fluctuations due to the increased investor interest in related companies.
- With the rise in revenue from the gaming industry, data and cloud computing solutions will be essential for sustainable and secure operations and management.
- In a bid to promote responsible gambling, Pagcor plans to invest in technology to monitor and enforce regulatory compliance, with an emphasis on responsible-gambling initiatives.
- The Philippine government may benefit from a portion of the gaming revenue, as Pagcor aims to allocate a portion of GGR for national development projects.
- The expansion of the gaming industry in the Philippines may stimulate the sports industry and sports-betting sector, given the potential synergies between casino-games such as poker, slots, and sports gambling.
