The online gambling industry in the Philippines continues to thrive, attracting local and foreign investors. However, entering this market requires you to secure the right legal documents and navigate strict regulations. With the recent ban on POGOs/IGLs on December 31, 2024, it’s important to know what is and isn’t allowed in online gambling today.
Below, we’ll explain everything you need to know about starting a legitimate online gambling business with a PAGCOR license.
What is PAGCOR and Its Role in Online Gambling?
The Philippine Amusement and Gaming Corporation (PAGCOR) is a government-owned and controlled corporation that regulates and operates games of chance in the Philippines. It was established in 1977 to curb illegal gambling and generate revenue for the government.
PAGCOR is a regulator and a licensor for online gambling operators and service providers. This means it sets the standards, issues licenses, and monitors compliance to ensure that gaming activities are fair, responsible, and safe for players. Without PAGCOR oversight, gambling operators risk being labeled illegal, which can lead to penalties, shutdowns, and reputational damage.
PAGCOR License vs POGOs/IGLs
It’s important to distinguish between a PAGCOR license and the now-defunct POGO/IGL licenses, which were made illegal on December 31, 2024
- A PAGCOR license refers to any license issued by PAGCOR. It covers land-based and online gaming activities intended for players in the Philippines, including e-bingo, e-casinos, sports betting, and other digital gaming services. Operators under this license can legally cater to Filipinos, provided they comply with strict regulations on responsible gaming, taxes, and reporting.
- POGOs (Philippine Offshore Gaming Operators), later rebranded as Internet Gaming Licensees (IGLs), were licensed by PAGCOR to serve foreign players only. Filipinos were never permitted to gamble on POGO platforms. However, in 2024, the Philippine government officially banned all offshore online gambling operations, ordering PAGCOR to revoke every IGL license.
In short, PAGCOR licenses remain valid for domestic gaming operations, while POGOs/IGLs are now completely illegal. Any existing POGO/IGL licenses are illegitimate and likely counterfeit.
Why You Need a PAGCOR License to Operate
A PAGCOR license offers several advantages:
- Legitimacy: It gives your business a government-backed seal of approval, proving to players and partners that you operate legally.
- Player Trust: Licensed platforms attract more users since players are assured that games are fair and winnings are honored.
- Legal Protection: Avoids the risks of raids, fines, or forced shutdowns common to unlicensed operators.
- Access to Partnerships: Most banks, payment providers, and affiliates only work with licensed operators.
Requirements for Securing a PAGCOR License
Applicants need to gather the necessary documents. Remember that PAGCOR issues several types of licenses, and businesses must apply for the appropriate license for each specific game or service they want to operate. For example, PAGCOR issues licenses for the following:
- Traditional Bingo Games
- Electronic Bingo (E-Bingo) Games
- Electronic (eCasino) Games
- Sports Betting
- Specialty Games
- Online Poker Games
- Numeric Games
- Other suite of games that may be allowed by PAGCOR in the future
While requirements may vary depending on the specific license, you will typically need:
- Letter of intent addressed to the Chairman and CEO of PAGCOR
- Duly accomplished and notarized application form
- Securities and Exchange Commission (SEC) Registration or its foreign equivalent
- Articles of Incorporation (AOI) and By-Laws duly stamped and received by the SEC
- To qualify, a company’s articles of incorporation and bylaws must list gaming as a primary business purpose (or have a board resolution if it’s secondary).
- It must meet the required amount of authorized capital stock and paid-up capital.
- Under the Foreign Investment Negative List, foreign ownership in gambling is capped at 40%, unless covered by a specific investment agreement with PAGCOR.
- Latest General Information Sheet (GIS) with beneficial ownership declaration page or its foreign equivalent
- Company overview and profile
- An organizational chart indicating the names of persons occupying the positions
- Business profile detailing the company’s business model, plan, and projections
- Money Laundering and Terrorist Financing Prevention Plan (MTPP);
- Duly accomplished and notarized Personal Disclosure Sheet (PDS) (OGLD Form No. 1050) of authorized representative and key officers of the corporation
- Board Resolution or Secretary’s Certificate appointing Authorized Representative
- Declaration of Security Compliance Officer
- BIR Certificate of Registration
- Result of the evaluation issued by an accredited probity checker of the OGLD
- Proof of payment of the Application Fee
- Additional documents, depending on your business status and operations
In addition, PAGCOR may require you to secure a Permit to Own and Possess Gaming Equipment and Gaming Employment Licenses. Contact Triple i Consulting to help secure all the legal documents you need to operate.
Process of Starting a Legitimate Online Gambling Business
Here’s a short breakdown of the process:
- Register Your Business: Before applying for a PAGCOR license, you must legally establish your company in the Philippines. This involves registering with the Securities and Exchange Commission (SEC), securing a business name, and obtaining necessary local permits, including a Mayor’s Permit and Barangay Clearance.
- Register with Additional Government Agencies: Register with the Bureau of Internal Revenue (BIR), the Department of Labor and Employment (DOLE), and other agencies depending on your business operations.
- Check Which PAGCOR Licenses You Need: Depending on the games and your business operations, you will likely need several licenses and permits from PAGCOR. Check their official website for the full list of licenses and permits.
- Prepare Documentation for PAGCOR: Gather SEC registration papers, financial records, business plans, and technical certifications.
- Submit Applications: File the complete applications and the required fees in your closest PAGCOR office.
- Undergo Evaluation: PAGCOR reviews your documents, conducts background checks, and may ask for clarifications.
- Technical Inspection: Your systems are tested to ensure gaming fairness and data protection standards compliance.
- Approval and Issuance: If successful, PAGCOR issues your license/s, allowing you to operate legally.
- Ongoing Monitoring: After approval, you must submit regular reports and comply with PAGCOR regulations.
The process can be rigorous, but it ensures that only qualified operators enter the market. Triple i Consulting can help you register your business and obtain all the legal documents necessary to operate. We ensure your application is complete, accurate, and fully compliant with all requirements.
Compliance and Regulatory Obligations
Getting the required PAGCOR licenses is only the beginning. To maintain it, operators must:
- Pay Licensing Fees and Taxes: These include application fees, regulatory fees, and gaming-related taxes.
- Submit Regular Reports: Financial, operational, and technical reports must be filed to demonstrate ongoing compliance.
- Promote Responsible Gaming: Implement measures such as age verification, betting limits, and self-exclusion tools.
- Maintain System Integrity: Ensure your gaming platform is secure, fair, and resistant to cyber threats.
Failure to comply can result in penalties, suspension, or revocation of your license.
Final Thoughts
Starting an online gambling business in the Philippines offers immense opportunities and strict requirements and regulations. Properly register your business, obtain a PAGCOR license, and adhere to its regulations to ensure smooth operations and avoid penalties. Triple i Consulting can assist you with your business registration, meeting PAGCOR license requirements, and processing your application.
Are You Registering a Gambling Business in the Philippines?
Setting up a gambling business in the Philippines can be challenging due to strict requirements and regulations. Missing a document or failing to comply with industry rules can result in costly fines or even the suspension of your operations.
That’s where Triple i Consulting comes in. Our team of experienced lawyers and accountants provides comprehensive support for your business registration, so you don’t have to stress over the paperwork. We’ll handle the permits and renewals so you can focus on what matters—running your business and achieving financial success.
Contact us today to schedule an initial consultation with one of our experts:
- Fill out the form below
- Call us at: +63 (02) 8540-9623
- Send an email to: info@tripleiconsulting.com
