PAGCOR may cap online gaming licenses at 50
THE PHILIPPINE Amusement and Gaming Corp.’s (PAGCOR) online gaming arm is considering a cap on offshore gaming operators amid worries over a saturated market.
Philippine Offshore Gaming Operators ( POGO) Vice- President Jose S. Tria, Jr. said that his agency is considering to limit the country’s online gaming operators to 50.
Currently there are 42 licensed offshore gaming operators in the country, with 12 more currently awaiting approval, according to Mr. Tria.
POGO prioritizes the awarding of licenses to those operators with large numbers of gaming tables and machines.
However he has not given a timeline on the imposition of the moratorium as the agency is still waiting to develop an audit system that automatically tracks cash flow.
“It depends on the evaluation. Our audit system is delayed at the procurement [process],” Mr. Tria told reporters on the sidelines of a forum in Manila yesterday.
“Our latest estimate on its installation is September,” he added.
When the audit system is in place, evidence of market saturation will be apparent, he said. “When their income declines from the previous reported income, it means that there are too many operators,” he said, noting that income declines are a signal that competitors are eating into each others’ revenue.
POGO estimates that it will generate some P6 billion in taxes monthly solely from online gaming since the industry started reporting revenue in December. — Ms. Domingo declined to identify — that expressed an interest to operate in Entertainment City.
“Those four in Entertainment City are the limit. Because there is an international Las Vegas-based casino that is applying and put a strong proposal… And the four came back with a position paper that the gaming market is not yet developed in this area. So we have to give them enough time. That’s why we are currently not approving IRs ( integrated resorts) here in NCR,” said Ms. Domingo.
“When you regulate, you should also regulate competition,” she added. —