Discussions in the Philippines are escalating around the future of the country’s iGaming ecosystem.
Keith McDonnell of the KMI Group shared key insights with iGaming Expert on the continuing political shifts in the country and what’s next for the market.
Is there a realistic concern that a bill to enact a complete ban on iGaming will be successful?
Not during this administration. The political fallout that would bring would be monumental in terms of job losses and the general economy. The next administration will be in two years, when there is a strong chance power will revert back to Duterte’s daughter, Sara, who formally announced her candidacy for the 2028 elections on 18 February.
Sara Duterte is currently Vice President, but her relationship with the current president, Ferdinand “Bongbong” Marcos Jr, unravelled as they pursued different political agendas and deteriorated further when Marcos allowed the International Criminal Court to arrest Sara’s father, the former President Rodrigo Duterte, over his violent war on drugs.
The Duterte administration was more pro-gambling and created POGOs and PIGOs, so under them its even more unlikely there’d be a complete ban. It would take a monumental shift in policy for that to happen.
What can PAGCOR do to work more effectively with senators and advocate for the future of iGaming in the Senate?
PAGCOR works very closely with the senate and Chairman Alejandro Tengco regularly attends Senate hearings on gambling topics. PAGCOR reports to the office of the President, and they work in unison with the government.
Tengco has suggested that increased advertising restrictions may be put in place. How do you think such measures will be received by Senators?
Very well received. Senators coming out against that would be suspected of corruption and potentially ‘in bed’ with gambling companies, so it’s unlikely there would be a dissenting voice to tighter restrictions on advertising.
This is much like the evolution of policy on advertising in any newly regulated country around the world. Regulation leads to over-advertising, which then gets blamed for social problems reported through the media. The result is inevitable.
PAGCOR is attempting to repeal the e-wallet ban. How impactful has the rule change been on the industry?
This has been a major inconvenience, but customers still find ways to deposit. The elimination of G-cash from G-Life as a deposit method has certainly made it less accessible, though.
The Philippines is at a crossroads. How vital is it that PAGCOR is able to secure a future for the regulated market?
The Philippines continues to be targeted by grey market operators. For job protection and wider economic issues, it’s essential that all is done to protect and grow the regulated market they’ve created and it’s expected that this will be the case.
What would the impact of a complete ban be on the Philippines’ black market?
It’s one thing to have a complete ban – and let’s be clear – that’s already there. It’s another thing enforcing it. As legitimate PIGO operators pay their taxes and remain compliant, pressure will build to ensure no bad actors are avoiding these measures and benefitting from unfair advantages when it comes to passing value on to customers.
Of course, there are also opportunities for overseas Operators and Vendors, operating under tier one licenses globally, to have service centres in the Philippines under special Care BPO accreditation, something I’ve helped businesses with from the USA, UK and other tier one jurisdictions.
If the gaming industry navigates these regulatory headwinds, can the Philippines establish itself as a hub for gaming in Southeast Asia? What economic benefits would this status bring?
I’ve been involved with the Philippines market since 2008 and since then, it’s always been a hub for gaming in Southeast Asia. Regulations and the landscape have changed. Recent measures are designed to double down on its long-established position as a regional hub and provide longevity, something that would pose more challenges under dark grey infrastructure, with the international hurdles that would bring.
Does the focus on e-sabong (cockfighting) by senators risk tarring the conversation surrounding the future of iGaming legislation in the Philippines?
I don’t think it does. E-sabong was made illegal under the previous Duterte administration and what we have now is a result of the current administration under the Marcos administration. The fact that we have had the PIGO market for a while now under this administration, people can see clearly the distinction between the two.
