The Philippine offshore gaming industry has been a topic of contentious debate among lawmakers, with contrasting views on its regulation and economic contributions. Recent developments under the oversight of the Philippine Amusement and Gaming Corporation (PAGCOR) have sparked new perspectives, highlighting significant revenue increases and regulatory reforms.
Revenue Growth and Regulatory Overhaul
In recent years, PAGCOR has implemented substantial changes in its approach to offshore gaming licenses. Under the revised Internet Gaming Licensee (IGL) regime, aimed at replacing the previous Philippine Offshore Gaming Operators (POGO) scheme, there has been a notable increase in revenue despite a reduction in the number of license holders. For instance, revenue from IGLs surged by 71% in 2023 compared to the previous year under POGO, totaling Php5.1 billion from 87 licensees versus Php2.99 billion from 158 POGO licensees in 2022 (source).
Regulatory Impact and Political Responses
Albay Rep. Joey Salceda, endorsing PAGCOR’s efforts, praised the regulatory body’s strategy under Chairman Al Tengco and President/COO Amy Eisma. He emphasized the shift towards stricter licensing regulations, which not only improved revenue collection efficiency but also aimed to weed out non-compliant operators. This approach, according to Salceda, is crucial for transforming the offshore gaming sector into a controlled yet beneficial contributor to the Philippine economy.
Economic Contributions and Employment Dynamics
Despite controversies surrounding the industry, Salceda highlighted the employment impact of IGLs, noting approximately 8,500 direct Chinese employees and 25,000 Filipino indirect hires. This marks a significant contrast from the peak of POGO operations, which involved as many as 200,000 employees directly and indirectly. The shift towards a more regulated framework, as advocated by Salceda, underscores the importance of balancing economic benefits with regulatory oversight.
Public Perception and Legislative Proposals
In contrast to the support for regulatory reforms, some Philippine senators have called for the complete abolition of offshore gaming licenses, citing concerns over social impacts and regulatory challenges. Salceda, however, advocates for a phased approach that eliminates non-compliant operators while preserving the economic benefits of the industry. He argues that effective enforcement and selective licensing are pivotal in maintaining industry integrity while addressing public concerns.
The evolution of the Philippine offshore gaming industry under PAGCOR’s revised regulatory framework reflects a nuanced approach to balancing economic growth with regulatory control. Despite challenges and differing opinions among lawmakers, the emphasis on revenue growth, employment generation, and regulatory efficiency underscores the industry’s evolving role in the Philippine economy.