How to Create a Land-Based Casino in the Philippines

August 18, 2024

Under the Philippine Amusement and Gaming Corporation (PAGCOR) jurisdiction, the Philippines offers opportunities for individuals and entities to establish land-based casinos. To do so, one must adhere to a comprehensive regulatory framework, from pre-license preparations to meeting the requirements for the official opening. This article will outline some of the processes of obtaining a PAGCOR license, essential requirements, regulations, and steps to take after securing the license to operate.

Pre-License Considerations

Before applying for a PAGCOR license to operate a land-based casino, it is essential to undertake the following steps:

Business Structure and Incorporation: Individuals or groups intending to apply must first establish a legal entity. PAGCOR generally requires that the applicant be a corporation registered with the Philippine Securities and Exchange Commission (SEC). The corporation must meet capitalization requirements specific to casino operators.
Financial Preparation: A solid financial foundation is critical. Applicants must ensure that they have sufficient capital to support the establishment and operations of a casino. PAGCOR has specific financial requirements, including a minimum capital investment, which can vary depending on the size and scope of the casino.
Location Selection: The site for the casino is crucial. PAGCOR requires that land-based casinos be located in designated areas, such as Entertainment City or other authorized economic zones. The location must also adhere to zoning laws and other land-use regulations.

Requirements to Get a PAGCOR License

To apply for a PAGCOR casino license, applicants must meet the following requirements:

Letter of Intent: Submit a formal letter of intent (LOI) to PAGCOR, expressing the desire to establish a casino. This LOI should outline the planned operations’ scope, location, and scale.
Feasibility Study: A comprehensive feasibility study must be submitted. This document should demonstrate the project’s economic viability, including projected revenues, target market, and potential job creation. The study must also detail how the casino will adhere to responsible gaming standards.
Business Plan: The applicant is required to submit a detailed business plan covering the proposed casino’s financial, operational, and marketing strategies. This plan must also include compliance with local laws and international gaming standards.
Capital and Financial Statements: Applicants must demonstrate their financial stability by submitting audited financial statements and proof of capital. PAGCOR has specific requirements for minimum paid-up capital depending on the type and size of the casino.
Background Checks and Vetting: All principal officers and significant shareholders of the applying entity must undergo background checks. PAGCOR will conduct thorough vetting to ensure that individuals associated with the project do not have any criminal background or involvement in illegal activities.

Application Process

Submission of Application: Once all prerequisites are met, the applicant can formally submit an application to PAGCOR. This application will include the LOI, feasibility study, business plan, and other necessary documents. PAGCOR will review the submission for completeness and accuracy.
Evaluation and Compliance Check: PAGCOR will evaluate the application, ensuring that all legal and financial requirements are met. The agency will also verify the business plan and feasibility study to confirm the viability of the proposed project.
Review of Location and Facilities: PAGCOR will conduct a site inspection to ensure that the proposed location adheres to the regulatory body’s standards. The inspection will include assessing the planned casino’s physical infrastructure and amenities.
Issuance of Provisional License: If all criteria are satisfied, PAGCOR will issue a provisional license. This allows the applicant to begin construction or preparation for the casino’s operations under certain conditions.

Rules and Regulations

PAGCOR’s casino regulatory framework includes a set of rules that license holders must follow:

Anti-Money Laundering (AML) Compliance: Licensees must adhere to the Anti-Money Laundering Act (AMLA) and ensure that their operations do not facilitate illegal financial activities. PAGCOR requires stringent AML compliance measures, including monitoring and reporting suspicious transactions.
Responsible Gaming: Licensees must promote responsible gaming by implementing policies that prevent problem gambling. This includes providing information on gaming addiction, offering self-exclusion programs, and ensuring that minors and vulnerable individuals are not allowed to gamble.
Operational Audits: PAGCOR reserves the right to conduct audits and inspections to ensure compliance with all gaming regulations. Licensees must submit regular financial reports and maintain transparency in their operations.
Taxation and Fees: Casino operators are subject to specific taxes and fees as mandated by PAGCOR. These include gaming taxes, regulatory fees, and contributions to community development programs. Licensees must ensure timely payment of all obligations.

Post-License Obligations Before Opening

After receiving the provisional license, several steps must be completed before the casino can officially open its doors to the public:

Construction and Infrastructure Setup: If not already established, construction of the casino must begin following all local building codes and PAGCOR standards. The infrastructure must accommodate gaming areas, security systems, and other facilities required for casino operations.
Employee Training and Hiring: The casino must hire and train staff, ensuring all employees understand PAGCOR regulations, responsible gaming practices, and operational protocols. Background checks must also be conducted on staff, especially those involved in critical financial or security roles.
Trial Operations: Before the official opening, PAGCOR may require the casino to undergo a period of trial operations. This allows the regulatory body to assess the casino’s readiness, including the functionality of gaming equipment, security measures, and compliance with responsible gaming standards.
Final Inspection and Approval: PAGCOR will conduct a final inspection to ensure the casino meets all regulatory requirements. If everything is in order, the casino will be granted a full license to operate officially.

Creating a PAGCOR-licensed land-based casino in the Philippines involves a multi-step process, from initial preparations to compliance with regulatory requirements. By following PAGCOR’s guidelines, ensuring financial stability, and adhering to the strict rules and regulations set forth, an entity can establish a successful casino operation in one of the country’s designated gaming areas. Careful attention to detail and commitment to responsible gaming are essential for long-term success in the casino industry.

Is Assistance Available?

Yes, we’re here to help. When incorporating a business and setting up a land-based casino in the Philippines, efficiency in managing time, effort, and cost is essential. Navigating the application process, business registration, and compliance with casino-related regulations can be complex. Our expertise ensures these processes are handled smoothly, allowing you to focus on your business’s operational and growth aspects.

We specialize in streamlining company incorporation and casino licensing processes. If you need support with business registration or casino setup, feel free to contact us for personalized assistance through any of the following channels: