How to Get an E-Games License in the Philippines from PAGCOR

To operate e-games or e-bingo in the Philippines, an operator must obtain a license from the Philippine Amusement and Gaming Corporation (PAGCOR). PAGCOR holds the exclusive franchise to authorize, license, and regulate games of chance, games of cards, and games of numbers nationwide. This article explains the legal basis for PAGCOR’s licensing power and outlines the general steps an applicant must take to secure an e-games license.

What Is PAGCOR’s Legal Authority to License E-Games?

PAGCOR’s authority comes from Presidential Decree No. 1869, as amended by Republic Act No. 9487. Under Section 10 of the PAGCOR Charter, the corporation is granted the rights, privileges, and authority to operate and license gambling casinos, gaming clubs, and other similar recreation or amusement places, as well as gaming pools such as basketball, football, and bingo.

The term "e-games" refers to electronic versions of traditional games, including e-bingo, electronic slot machines, and other computerized gaming systems. These fall under PAGCOR’s licensing authority because they are "games of chance, games of cards, and games of numbers" as contemplated by the Charter.

Scope of PAGCOR’s Licensing Power

PAGCOR’s authority is not unlimited. Section 10 of the Charter expressly excludes from PAGCOR’s licensing power:

1. Games of chance already authorized, licensed, or regulated under existing franchises or by other regulatory bodies;
2. Games governed by special laws, such as Republic Act No. 7922 (which covers certain gaming activities); and
3. Games like cockfighting, which are authorized, licensed, and regulated by local government units.

For e-games and e-bingo that do not fall under these exceptions, PAGCOR remains the sole licensing authority.

Key Requirements for an E-Games License

While the specific application requirements are set by PAGCOR’s internal rules, the Charter provides important conditions that all applicants must satisfy:

Local government consent. The Charter requires that PAGCOR obtain the consent of the local government unit (LGU) that has territorial jurisdiction over the site of any gaming operation. This means an e-games operator must secure the approval of the city or municipality where the gaming facility will be located.

Accredited hotel or resort for certain equipment. The operation of slot machines and other gambling paraphernalia is not allowed in establishments open or accessible to the general public unless the site is a three-star hotel or resort accredited by the Department of Tourism, and the operation is authorized by both PAGCOR and the LGU concerned.

Corporate structure. The applicant must be a juridical entity—typically a corporation—with the legal capacity to enter into contracts. PAGCOR has the power to enter into investment agreements, joint venture agreements, management agreements, and other similar arrangements under Section 3(h) of the Charter.

Steps to Apply for an E-Games License

The application process generally follows this path:

1. Prepare corporate documents. Ensure the applicant company is registered with the Securities and Exchange Commission (SEC) and has the appropriate corporate powers to engage in gaming operations.

2. Secure LGU consent. Obtain the written consent or resolution from the LGU where the e-games facility will operate. This is a statutory requirement under the Charter.

3. Submit a formal application to PAGCOR. The application must include a detailed business plan, technical specifications of the gaming system, and proof of financial capability.

4. Undergo PAGCOR’s due diligence review. PAGCOR will evaluate the applicant’s background, the source of funds, and the technical integrity of the proposed gaming equipment.

5. Execute a licensing agreement. Once approved, the applicant enters into a contract with PAGCOR, which sets out the terms, conditions, fees, and regulatory obligations.

6. Comply with ongoing regulatory requirements. Licensees must submit to PAGCOR’s monitoring, audits, and reporting obligations for the duration of the license.

How Long Does the License Last?

The PAGCOR franchise itself is valid for 25 years from July 11, 2008, renewable for another 25 years. However, individual e-games licenses are typically issued for shorter terms and are subject to renewal based on PAGCOR’s regulations and the licensee’s compliance.

Frequently Asked Questions

Is an e-games license from PAGCOR required for online gaming? Yes. Online e-games and e-bingo operations fall within PAGCOR’s authority to license and regulate games of chance, games of cards, and games of numbers under Section 10 of the Charter.

Can a foreign company apply for a PAGCOR e-games license? Foreign companies may participate, but they typically need to establish a Philippine entity and comply with local ownership requirements. PAGCOR has the power to enter into various agreements with any person, firm, association, or corporation under Section 3(h).

What happens if an operator runs e-games without a license? Operating without a PAGCOR license is illegal and exposes the operator to criminal liability and closure of the gaming facility. PAGCOR is the sole regulator for these activities.

Practical Takeaways

• PAGCOR is the exclusive licensing authority for e-games and e-bingo in the Philippines, except for games covered by other franchises, special laws, or LGU jurisdiction.
• LGU consent is mandatory. No gaming site can operate without the approval of the local government unit where it is located.
• Three-star hotel requirement applies to slot machines and similar equipment in public-accessible establishments.
• Prepare for a rigorous due diligence process. PAGCOR evaluates financial capability, technical integrity, and corporate background.
• Licenses are contractual. The rights and obligations of the licensee are defined in the agreement with PAGCOR, not by statute alone.

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