Under its Charter, the Philippine Amusement and Gaming Corporation (PAGCOR) was given the mandate to regulate, operate, authorize, and license games, particularly casino gaming in the Philippines. Through this mandate, PAGCOR is expected to generate revenues for the Philippine Government’s socio-civic and national development programs, as well as help promote the Philippine tourism industry. The BIR said the registration of offshore gaming operators with the BIR shall be done with the agency’s regional district office having jurisdiction over the place where the head office and/or branch of the POGO hub is located. WHEREAS, RA No. 9728 created the Authonty of the Freeport Area of Bataan (AFAB) to manage and operate the Freeport Area of Bataan , and authorized it t o operate on its own , either directly or through a license to other tourism-related activities, including games, amusements, recreational and sports facilities, subject to the approval and supervision of the PAGCOR. For VAT purposes, however, the exemption extends only to those individuals or entities that have contracted with PAGCOR; 20 deposit casino hence, PAGCOR Contractees and not Licensees. As such, the Licensees’ revenues from gaming operations, involving sale of goods and/or services in the course of trade or business, are generally subject to VAT.

Philippine Amusement and Gaming Corporation(PAGCOR)

  • The country’s love for games and its young, tech-savvy population have contributed to the rapid growth of the online gaming industry in the Philippines.
  • For VAT purposes, the sale of goods and/or services in the course of trade or business is generally subject to VAT.
  • Under its Charter, the Philippine Amusement and Gaming Corporation (PAGCOR) was given the mandate to regulate, operate, authorize, and license games, particularly casino gaming in the Philippines.
  • The Philippines has become a major player in the global online gaming industry, with a market size that is expected to reach PHP 35.4 billion by 2025, according to Statista.
  • PAGCOR’s Licensees’ income from the operation of casinos shall be exempt from regular CIT upon payment of the 5% franchise tax since the law is clear that said exemption inures and extends to their benefits.

By 2028, PAGCOR will generate 12.5 BILLION U.S. DOLLARS from the gaming industry to become the leading authority in the ASEAN region and increase its role as a major partner in nation-building. The Corporation was created during the Martial Law years by virtue of a Presidential Decree (PD1067-A) issued by then President Ferdinand Marcos in response to calls for the Philippine Government to put a stop to the growing proliferation of illegal casino operations in various parts of the country then. On the other hand, income from other related operations/services or from non-gaming operations pertains to income from the operation of necessary and related services, shows and entertainment. Building a robust and secure online gaming platform is crucial for the success of your business. “PEZA has proven its contributions not only to export income and massive employment it created, but also to the social progress it contributes for the host local government units where ecozones and export companies are located,” she said.

Philippines gaming license

How To Start an Online Gaming Business in the Philippines: A Step-by-Step Guide

POGO sites in the Philippines must comply with PAGCOR regulations — for instance, they must not be in a residential area, and must have a maximum floor area of 25,000 square meters. Income realized by PAGCOR’s Licensees from other related services/operations shall be subject to regular CIT, VAT, and other applicable taxes under the Tax Code. Remember to conduct thorough market research, choose the right legal structure, obtain the necessary licenses, develop a compelling gaming platform, and market your business effectively.

However, after the floating casino was gutted by fire in 1979, PAGCOR shifted its focus to land-based casinos and entered into another contract with PCOC for the management of a casino at the Provident International and Resources Corporation (PIRC) building on Imelda Avenue, Parañaque City, Metro Manila, Philippines. Then, under Presidential Decree 1869, decreed in 1983, it was mandated to act as the sole government corporation conducting and establishing gaming pools and casinos in the country. Moreover, in the 2022 RMC, PAGCOR’s tax exemption extends only to those that have contracted with PAGCOR in connection with PAGCOR’s gaming operations.

Significant provisions require that licensees must have a capital of P100 million, of which P25 million must be paid up. As the troubled industry generates news that ranges from controversial at best to illegal at worst, it would be good to know more about POGOs and how they affect us. The main regulatory bodies for the industry are PAGCOR and the Cagayan Economic Zone Authority (CEZA). This research will help you tailor your offering to the local market and identify any gaps or opportunities that your business can fill.