Philippine Gaming Regulator Permits Lottery Services for Electronic Game Operators

The Philippine Amusement and Gaming Corporation (PAGCOR) has officially authorized electronic gaming operators to include number games, such as lotteries, in their offerings to customers. This decision follows the recent nationwide ban on Philippine Offshore Gaming Operators (POGOs), which prompted some electronic gaming providers to seek clarification on their operational status.

PAGCOR has stipulated specific conditions for these number games, including a minimum bet of PHP5 (approximately $0.09 USD) and a prohibition on using the same drawing mechanisms as the Philippine Charity Sweepstakes Office (PCSO) lottery. Operators are also required to pay a two-year gaming license application fee of PHP200,000 ($3,600 USD) and a PHP200,000 cash deposit per gaming venue.

The regulator will receive a 15% share of gross gaming revenue from live-streamed games and an initial 35% share for random number generator (RNG)-based games from July to December 2024. This share rate for RNG-based games will decrease to 30% starting in January 2025.

However, this decision has drawn criticism from some quarters. Nicasio Conti, CEO of Capstone-Intel Corp. and former commissioner for the Presidential Anti-Graft Commission and Presidential Commission on Good Government, has expressed concerns about the potential impact of online gaming on young Filipinos and children. He advocates for limiting gaming to integrated resort casinos and hotels catering primarily to foreign tourists, with minimal access for local tourists.