PAGCOR Allows E-Gaming Operators to Offer Lottery Services

According to a PAGCOR memo prepared by PAGCOR Assistant Vice President Jeremy Laglug, e-gaming operators offering number games are required to comply with certain rules. Specifically, they are prohibited from using the same devices, tools, and equipment that the Philippine Charity Sweepstakes Authority uses for its lottery draws. The minimum bet for number games has been set at PHP5 (US$0.08).

To obtain a license to operate number games, operators will have to pay an application fee of PHP 200,000 (approximately US$3,458.68) for a two-year license. In addition, a deposit of PHP 200,000 in cash is required for each gaming establishment. These measures are aimed at regulating the market and ensuring transparency among operators.

Operators are required to contribute 15% of their gross revenue from live streamed games to PAGCOR. For games based on random number generators (RNG), the rate is set at 35% initially, which will be effective from July to December 2024. From January 2025, the rate for RNG games will drop to 30%.

Capstone-Intel Corp. CEO Nicasio Conti expressed his opinion on the new PAGCOR regulations: “Pagcor should only allow gambling in integrated resort casinos and hotels that mainly target foreign tourists, and if possible, only to a minimum extent for domestic tourists. But they should protect the internet from excessive gaming, as there are many young Filipinos on the internet, especially children.” The new regulations introduced by PAGCOR open up additional opportunities for e-gaming operators by allowing them to offer lottery services. These measures are aimed at creating a transparent and safe gambling market in the country, while ensuring that the interests of players are protected and the rules are followed. Time will tell how the market will develop under these new conditions and what changes await the industry in the future.