PAGCOR: All You Need to Know
The Philippines Amusement and Gaming Corporation (PAGCOR) is government-owned and controlled. Created in 1977 during the Martial Law years via Presidential Decree, it was introduced as a way of putting a stop to the spread of illegal casino operations within the Philippines. The law that created PAGCOR was later amended and consolidated under what is known as the PAGCOR Charter.
Under that Charter, PAGCOR operates with a three-pronged mandate, which includes:
- The regulation, operation, authorization and licensing of games of chance, card games and number games, and particularly casino gaming in the Philippines.
- The generation of revenues for the Philippine government’s socio-civic and national development programs.
- The promotion of the Philippine tourism industry.
It was in 2007 that Republic Act No. 9487 was passed, which extended the corporate life of the state-run gaming firm by 25 years.
Table of Contents
- What Else Does PAGCOR Do?
- Where Does the Income from Casino Operations Go?
- How Much Does a PAGCOR Gambling Licence Cost?
What Else Does PAGCOR Do?
PAGCOR also operates ten casino branches in major Philippine cities. Collectively, these are known as Casino Filipino, and they are situated in the following locations:
- Metro Manila: Malate, Manila Bay and Ronquillo.
- Luzon: Angeles, Ilocos Norte and Tagaytay.
- Visayas & Mindanao: Bacolad, Cebu, Davao and Iloilo.
Not only that, but PAGCOR is responsible for operating more than 30 satellite casinos in major cities. These are popular tourist destinations across the country’s three islands. Offshore casinos can also apply for and be granted a licence from PAGCOR to provide online operations to players.
Where Does the Income from Casino Operations Go?
Also, following the PAGCOR Charter, the earnings from PAGCOR are distributed to the following areas:
- 5% of winnings go to the BIR as a franchise tax.
- 50% of the remaining 95% balance goes to the National Treasury. From that, 5 million monthly pesos are sent to the Dangerous Drugs Board, totalling 60 million yearly.
- After that, 5% of the remaining balance goes to the Philippine Sports Commission, financing the country’s sports development programs.
- 1% of the net income goes to the Board of Claims – this aims to compensate victims of wrongful detention and prosecution.
- Cities hosting PAGCOR casinos also receive fixed amounts for their community development projects.
How Much Does a PAGCOR Gambling Licence Cost?
Anyone looking to provide games of chance from within the Philippines must apply for a licence from PAGCOR. A site looking to provide GCash PAGCOR games must pay ₱300K; this licence remains valid for three years. It can then be renewed for ₱200K every two years. The initial fee for a sports betting operation is ₱200K, valid for two years, with the renewal fee being the same price.
Any foreign-based company looking to provide online gaming services via a PAGCOR licence must submit an application and relevant fee to the organization. The Offshore Gaming Licensing Department (OGLD) will issue a Deposit Notice and Payment Form. Applicants must also submit proof of payment for the application fee, which must be submitted within 30 days of payment.
There are three types of applications from PAGCOR for offshore companies, which are:
- Internet Gaming Licence: ₱100K.
- Gaming Content Provider Authorisation Class 1 and Class 2: ₱100K.
- Support Provider Authorisation: ₱100K.
There are also accreditation fees to pay, which exist in the following formats:
- Local Gaming Agent: ₱40K for two years.
- Independent Testing Laboratory: ₱5,000 for three years.
- Probity Checker: ₱5,000 for three years.
All online gaming licensees are liable for monthly regulatory fees of 2%.