PAGCOR Accreditation for Data Streaming Providers: Requirements and Process

Data streaming providers (DSPs) in the Philippines must be accredited by PAGCOR before operating. Accreditation is the authorization given by PAGCOR for the conduct of DSP functions, and it is issued through the Remote Operations and Ancillary Services Department (ROASD). A DSP is an entity that services legitimately licensed gaming operators abroad by providing live-streamed games, and it must maintain at least a 90% Filipino workforce. The process begins with a Letter of Intent to the PAGCOR Chairman and CEO, followed by documentary submission, probity checking, pre-operational requirements, and the issuance of a Notice to Commence Operations (NCO).

Who qualifies for DSP accreditation

Under the Accreditation Framework for Data Streaming Providers, an applicant must:

• Be duly registered with the Securities and Exchange Commission (SEC);
• Be of good financial standing and satisfactory corporate structure;
• Have directors and officers of good repute, character, honesty, and integrity, and of good financial standing;
• Have directors and officers not associated with persons of ill repute or unsatisfactory financial resources; and
• Provide services to a gaming operator licensed under a reputable jurisdiction.

The checklist of requirements also requires an authorized capital stock of at least Php10,000,000.00, with paid-up capital stock of at least Php2,000,000.00.

Accredited DSPs may provide data streaming services for live casino table games, live slot machine games, live bingo games, live specialty games, and live marble games. They may not accept bets or handle payouts, engage in illegal activities, provide services to unlicensed entities, or share, lease, or sub-contract the accreditation.

The application process, step by step

1. Submit a Letter of Intent (LOI) to the PAGCOR CCEO. It must state the company name, intended address of operations, the gaming operator to be serviced, details of the operator's license and licensing jurisdiction, a contact person, and an undertaking to comply with the DSP framework. Attach the Articles of Incorporation and By-Laws, latest General Information Sheet with beneficial ownership page, the Service Agreement, the operator's registration documents and license, and a floor plan.
2. Pay the application fee. ROASD issues a Deposit Notice and Payment Form. Submit the deposit slip or wire transfer receipt using the Remittance Form within five (5) working days from payment. The fee is non-refundable and non-transferable.
3. Undergo probity checking and submit the Data Privacy Consent Form. Probity results are submitted by the probity checker directly to PAGCOR.
4. Submit the notarized Application Form and complete documentary requirements to ROASD within three (3) months from issuance of the ROASD notices. Incomplete or late submissions are returned; if filed beyond the three-month period, the application is deemed denied and all fees are forfeited.
5. Await evaluation and Board action. Complete applications are recommended to the PAGCOR Board of Directors (BOD), and the applicant is notified of the decision.

Fees for new applications

The framework sets two classifications. A Single Client DSP (Class 1) pays US$100,000.00 per year. A Third Party DSP (Class 2) pays US$50,000.00 per operator per year, may service a maximum of ten (10) licensed operators abroad, and must onboard at least two (2) licensed operators within the validity period for a one-year accreditation, or within the first year for a two-year accreditation. Failure to onboard a second operator within the prescribed period carries a penalty of US$50,000.00 per year of accreditation.

Pre-operational requirements and the NCO

Before commencing operations, an approved applicant must comply with pre-operational requirements, including the performance cash deposit, certification from an Independent Game Testing Laboratory, AML Council registration, SSS/HDMF/PhilHealth registration, an Internet Service Provider engagement, the Manpower List Form, network topology, and a pre-operational inspection and walkthrough by CMED-EG and ITD.

The DSP then writes to ROASD requesting the NCO. Once issued, the monthly administrative fee applies. Even if commercial operations do not commence, the full administrative fee is imposed sixty (60) days from the grant of accreditation. Operating without the NCO results in fines and/or suspension.

Renewal deadlines and penalties

An LOI to renew must be filed at least ninety (90) days before expiration. The notarized application form and requirements must be submitted at least sixty (60) days before expiration; failure to do so carries a US$5,000.00 penalty. An application filed on the date of expiration is not processed, and the DSP must apply for a new accreditation to resume operations.

Ongoing compliance obligations

Accredited DSPs must allow the PAGCOR Monitoring Team to inspect premises and equipment, report changes in directors and officers to ROASD within thirty (30) calendar days, comply with the Data Privacy Act of 2012, and submit annual reportorial requirements not later than May 31 of the following year. Monthly manpower reports are due every fifth (5th) day of the month. Foreign employees must not exceed 10% of the total workforce, except that DSPs needing highly specialized or proprietary functions may engage foreign personnel beyond the threshold but never exceeding 25% of the total workforce. Stay-in or live-in arrangements for employees within the premises are prohibited.

Frequently asked questions

How much is the PAGCOR accreditation fee for a data streaming provider? A Single Client DSP (Class 1) pays US$100,000.00 per year, while a Third Party DSP (Class 2) pays US$50,000.00 per operator per year.

How long is a DSP accreditation valid? An applicant may apply for a maximum period of two (2) years. If the Service Agreement with the gaming operator abroad is shorter than the accreditation validity, the accreditation terminates when the agreement ends.

Can a DSP accept bets from players? No. DSPs operate strictly on a business-to-business basis and may not accept bets or handle payouts or engage in business-to-consumer gaming activities.

Practical takeaways

• File early. The LOI for renewal is due at least 90 days before expiration, and complete requirements at least 60 days before; late submission triggers a US$5,000.00 penalty.
• Mind the three-month rule. Complete documents must be submitted within three (3) months of ROASD's notices, or the application is deemed denied and fees are forfeited.
• Keep the workforce compliant. Maintain a 90% Filipino workforce, with foreign personnel not exceeding 25% of the total workforce even in specialized cases.
• Do not operate without the NCO. Commencing operations without it leads to fines and/or suspension.
• Report changes promptly. Changes in directors and officers must be reported to ROASD within 30 calendar days, with probity checking for new officers.

Primary sources

The rules discussed above are drawn from the following PAGCOR issuances, embedded here in full for your reference.

Accreditation Framework for Data Streaming ProvidersOpen in Law LibraryDownload PDF

Compliance Framework for Data Streaming ProvidersOpen in Law LibraryDownload PDF

Data Streaming Provider RequirementsOpen in Law LibraryDownload PDF

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.