Following a significant growth in the number of licenses being issued in the Philippines gaming market, PAGCOR could be set to tighten its regulatory grip on the market.
Speaking during the Asia track on the final day of the SBC Summit in Lisbon, Marie Antonette Quiogue offered her prediction that a clean up is coming within the market.
She emphasised that this could come at compliance and operation level, potentially leading to firms reassessing their approach within the market.
The escalation of licensed operators in the Philippines is something that hasn’t been seen in any other markets, according to Quiogue.
She stated: “What PAGCOR is saying is ‘Give us some time. We have tried to regulate it the way that we know best’. Remember that they are primarily a regulator of land-based casinos but every week there are new rules for an enhancement and PAGCOR are the ones that are allowed to issue these rules, so they are working very hard to stay ahead of the game.
“I do not believe that whatever law they are seeking to pass in these legislative hearings will strictly dictate what PAGCOR will do. I believe PAGCOR will still remain as the regulator, deciding what rules have to be in place, and they may even be given more enforcement powers against illegal operators or illegal activities in the Philippines.”
The panel did lay out that even amidst tightening frameworks, the heritage of the Philippines market remains strong and can lead to it continuing as a strong base for the Asian gambling market, specifically when it comes to call centres and education around gambling.
Quiogue outlined a belief that PAGCOR is set to tighten its aim at the black market and deepen compliance efforts in the sector.
PAGCOR Chair and CEO Alejandro H. Tengco recently underpinned this threat by highlighting the significant amount of fees that come from the regulated sector.
“These illegal sites not only deprive the government of much-needed revenues but also expose Filipino players to numerous risks,” Tengco noted.
The PAGCOR CEO underpinned enhanced enforcement against the illegal sector, emphasising its “commitment to strengthening regulation and enforcement to ensure that only legitimate and properly monitored operators are allowed to operate”.
However, concerns around the black market continue to be prominent. In particular, recent research revealed the popularity of e-sabong, also known as cockfighting.
Also central to the enticing of players to the black market was the allure of juiced-up bonuses of 108%, epitomising the hurdles faced by the regulated market when it comes to tackling engagement with illegal operators.
At the heart of the differentiation in marketing approaches is the affiliate strategy undertaken by both the regulated and the unregulated sectors.
The report revealed that many unregulated operators provide lucrative affiliate programs, sometimes offering 45–65% of gross gaming revenue to attract strong collaborations.
iGaming Expert Analysis: The Philippines could well be set for a period of transformation, as the level of licenses issued in the market has elevated. Upon intensifying frameworks for operators, remaining vigilant of the threat of the black market will be absolutely crucial though, as the regulated market continues to operate at a disadvantaged level.
