Anti-corruption crusaders have mounted a legal challenge of the Philippines’ gaming regulator’s constitutional right to issue online gambling licenses.
Last week, the Philippine Amusement and Gaming Corporation (PAGCOR) issued 35 new ‘offshore’ gambling licenses, the first of the new Philippine Offshore Gambling Operator (POGO) licenses to be issued since PAGCOR announced the new licensing regime in September.
On Wednesday, the Union for National Development and Good Governance-Philippines (UNLAD) asked the Supreme Court to nullify PAGCOR’s POGO program, on the grounds that PAGCOR has no legal basis to oversee online gambling.
UNLAD’s petition states that PAGCOR “committed grave abuse of discretion” in approving the POGO program because it is “not authorized under its legislative franchise, Presidential Decree 1869, either to operate and regulate gambling on the internet catering [to] foreign based players and gamblers that are physically outside the Philippine jurisdiction.”
UNLAD claims PAGCOR’s “act of mere issuing a license is in itself a violation of its franchise,” while arguing that legislators must amend Decree 1869 to enable PAGCOR to “delegate that authority to various license holders.”
Until this year, online gambling licensing was largely delegated to the Cagayan Economic Zone Authority (CEZA), under whose authority the vast majority of Asian-facing online gambling operators were licensed. But newly elected President Rodrigo Duterte directed PAGCOR to assume greater oversight over the online industry, leading to the development of the POGO regime.
POGO TAX CHANGE
Last week saw PAGCOR amend the POGO regime’s tax and fee provisions. Originally, POGO licensees who offered random number generated (RNG) casino games were to pay $100 per month per player.
This fee has now been changed to $5k per month per RNG-based game. Operators or providers offering over 100 RNG games will pay $5k per month for the first 100 games, and $3k per month for every game after the first 100. The changes will apply for the first six months of licensure, after which PAGCOR has promised to review all aspects of the POGO program and make further adjustments as required.
