Pagcor taps 3rd party for POGO audit

The Philippine Amusement and Gaming Corp. (Pagcor), the gaming regulator, has tapped a third party service provider to audit offshore gaming companies in the Philippines.

The system is already in place, which means that all Philippine Offshore Gaming Operators (POGO) in the Philippines will have to go through a third-party audit as required by Pagcor, industry sources said.

This would result in higher collections from the offshore gaming industry starting March, sources also said.

Pagcor chairman and CEO Andrea Domingo said government revenues from POGO is expected to nearly double this year to P6 billion a year from P3.1 billion in 2017.

“This year, the number is expected to double,” she said.

She said Pagcor’s revenues from POGO would be boosted by the third-party consulting firm that would audit online gaming licensees’ operations.

This would ensure that POGO entities are making proper and accurate declarations regarding their financial activities.

Overall, Domingo is optimistic on the growth of the industry, saying that the sector has yet to reach its full potential. She noted that some licensees have yet to go full blast in their operations.

She said even if Pagcor would limit the issuances of POGO licenses to 50, after already issuing a total of 45 licenses, the existing licensees would still likely expand their operations.

To date, Pagcor has already issued 55 POGO licenses, but only 45 are e-casinos. The rest are into sports betting.

Domingo said they want to keep the e-casinos to just 50 licenses, which means they can only issue five more.

Pagcor introduced POGO in 2016 as a means to “safeguard the welfare of the Filipinos and at the same time meet the agency’s revenue targets to help fund the government’s nation-building programs.”

Under the POGO landscape, offshore gaming is conducted via internet using a network and software offered exclusively to offshore authorized players who have registered and established an online gaming account with the licensee.

Only foreigners based in another country are authorized to play, while foreign nationals in the Philippines and Filipinos residing abroad are not allowed to take part in the online gaming activity, under the POGO rules.

From each licensee, Pagcor charges application and processing fees of $50,000 for e-casino and $40,000 for sports betting and another $200,000 and $150,000, respectively upon approval of the license.

Offshore gaming will be conducted via internet using a network and software to be offered exclusively to offshore authorized players who have registered and established an online gaming account with the licensee.

To ensure strict compliance with the requirements including age restrictions, licensees make sure that all the players are accredited by an agent

One offshore gaming company, Oriental Game isaid the industry has room for growth.