The Philippine Amusement and Gaming Corporation (PAGCOR) has officially confirmed that electronic gaming operators are permitted to offer number games, such as lottery, to their customers. This announcement follows closely after the nationwide ban on Philippine Offshore Gaming Operators (POGOs), prompting several electronic gaming services, including an online bingo provider and a foreign gaming machine manufacturer, to reassess their operational statuses.
PAGCOR Affirms Authorization for Electronic Gaming Operators to Offer Number Games
Guidelines for Number Games Implementation
In a memorandum prepared by PAGCOR’s Assistant Vice President, Jeremy Luglug, and reported by Philippine news agencies, specific guidelines were outlined for the implementation of number games. The memorandum stipulates that “number games shall not, in any way, utilize the same drawing device, tool, and equipment currently used by the Philippine Charity Sweepstakes Office in its lottery draws.” Additionally, it mandates that the minimum bet for number games shall be no less than PHP 5 (US$0.08).
Fees and Licensing Requirements
Operators seeking to offer these number games are required to pay an application fee of PHP 200,000 (US$3,458.68) for a two-year gaming license, along with a PHP 200,000 cash deposit per gaming venue.
Revenue Sharing Structure
Financially, PAGCOR will receive 15% of the gross gaming revenue from live-streamed games and an initial 35% share from random number generator (RNG)-based games from July to December 2024. Starting January 2025, the share rate for RNG-based games will decrease to 30%.
Concerns Over Internet Gaming
Nicasio Conti, CEO of Capstone-Intel Corp., expressed concerns about the proliferation of gaming, particularly on the internet, stating, “PAGCOR should allow gaming only in integrated resort casinos and hotels catering mainly to foreign tourists, if possible only minimally to local tourists. But they should spare the internet from excessive gaming because a lot of young Filipinos, especially children, are on the internet.”
Objective of PAGCOR’s New Guidelines
This move by PAGCOR aims to regulate and streamline the gaming industry while addressing the concerns of responsible gaming and protecting vulnerable populations.
FAQs About PAGCOR’s New Authorization for Number Games
1. What has PAGCOR confirmed regarding electronic gaming operators?
PAGCOR has confirmed that electronic gaming operators are permitted to offer number games, such as lottery, to their customers. This decision follows the nationwide ban on Philippine Offshore Gaming Operators (POGOs).
2. What are the specific guidelines for implementing number games?
According to PAGCOR’s memorandum, number games must not use the same drawing devices, tools, or equipment as those used by the Philippine Charity Sweepstakes Office for its lottery draws. Additionally, the minimum bet for number games must be no less than PHP 5 (US$0.08).
3. What fees are required for operators to offer number games?
Operators must pay an application fee of PHP 200,000 (US$3,458.68) for a two-year gaming license. They must also provide a PHP 200,000 cash deposit per gaming venue.
4. How will PAGCOR benefit financially from these number games?
PAGCOR will receive 15% of the gross gaming revenue from live-streamed games and an initial 35% share from random number generator (RNG)-based games from July to December 2024. From January 2025, the share rate for RNG-based games will decrease to 30%.
5. What concerns have been raised about internet gaming?
Nicasio Conti, CEO of Capstone-Intel Corp., has expressed concerns about the potential negative impact of internet gaming, particularly on young Filipinos. He suggests that gaming should be limited to integrated resort casinos and hotels serving mainly foreign tourists, with minimal focus on internet-based gaming.
6. What is the goal of PAGCOR’s new guidelines?
PAGCOR’s new guidelines aim to regulate and streamline the gaming industry while addressing issues of responsible gaming and protecting vulnerable populations.
