Internet Gaming Licence Philippines: A Guide for Foreign Applicants

A foreign corporation cannot hold a PAGCOR internet gaming licence on its own. Under the Internet Gaming Licensing Regulations, a Foreign-based Licensee is a duly constituted business corporation organized in a foreign country that must engage the services of a PAGCOR-accredited local gaming agent and a PAGCOR-accredited Gaming Content Provider and/or Support Provider. The licence itself is a business-to-consumer (B2C) licence issued by PAGCOR's Offshore Gaming Licensing Department to offer livestreamed e-casino games, online random number generator (RNG) games, and online sports betting.

Who may apply as an internet gaming licensee

Regulation 3, Section 1 of the Internet Gaming Licensing Regulations recognizes two kinds of Internet Gaming Licensee:

• A Philippine-based Licensee — a duly constituted corporation organized in the Philippines, which either conducts internet gaming operations by itself or engages a PAGCOR-accredited Gaming Content Provider and/or Support Provider.
• A Foreign-based Licensee — a duly constituted business corporation organized in any foreign country, which engages a PAGCOR-accredited local gaming agent and a PAGCOR-accredited Gaming Content Provider and/or Support Provider.

For foreign applicants, the practical route is the Foreign-based Licensee track, which requires an accredited local gaming agent. Regulation 3, Section 3(D) states that the Foreign-based Licensee must appoint an accredited Local Gaming Agent subject to existing regulations.

Qualifications and corporate requirements

Under Regulation 3, Section 2, a licensee must:

• Be of good repute, considering character, honesty, and integrity;
• Not be associated with any person who is not of good repute or has undesirable or unsatisfactory financial resources;
• Be duly registered with the Securities and Exchange Commission (SEC);
• Have good financial standing and satisfactory corporate structure; and
• Not be among those excluded from engaging in gaming under the regulations or any other law, ordinance, or issuance.

The documentary requirements include a letter of intent addressed to the Chairman and Chief Executive Officer of PAGCOR, a duly accomplished and notarized application form, SEC registration or its foreign equivalent, the latest General Information Sheet with beneficial ownership declaration, and articles of incorporation and by-laws showing that gaming is one of the primary purposes of business. If gaming is only a secondary purpose, a board resolution ratifying the same must be submitted.

The regulations also require an authorized capital stock of at least Php 100,000,000 with a paid-up capital stock of at least Php 25,000,000. Note the foreign equity limitation: Executive Order No. 65 (the Eleventh Regular Foreign Investment Negative List) requires that foreign equity be limited to 40% for all forms of gambling, except those covered by investment agreements with PAGCOR.

Documentary and locational requirements

Beyond the corporate papers, the applicant must submit a company overview and profile, a business profile detailing the business model, plan, and projections, a lease contract or certificate of ownership of the operating site indicating floor area, a Money Laundering and Terrorist Financing Prevention plan (MTPP), the result of evaluation issued by an accredited probity checker of the OGLD, a BIR Certificate of Registration, proof of payment of the application fee, a Declaration of Security Compliance Officer, and a board resolution or secretary certificate appointing an authorized representative.

On location, the operating site must have a maximum floor area of 25,000 square meters, inclusive of the floor area of the Support Provider, and must not be in a residential area or any area restricted by PAGCOR. In the absence of a city or municipal ordinance stating otherwise, a letter of no objection (LONO) from the local government unit is required.

Pre-operational requirements

Before operations commence, the licensee must post a performance bond, provide onsite access for viewing and extraction of essential data from the back office, and submit certifications from an independent testing laboratory that the betting system was extensively tested and found compliant, and that the internet protocol (IP) blocking of all Philippine IP addresses is in place, excluding an IP address designated by PAGCOR. The applicant must also secure an AMLC Certificate of Registration, submit a manpower list and a responsible gaming program, undergo a pre-operational inspection and walkthrough by the OGLD and other relevant departments, and obtain a Notice to Commence Operations issued by the OGLD.

The licence and its limits

The Internet Gaming License is evidenced by a certificate issued by the OGLD and is valid for two (2) years. It is site-specific, non-assignable and non-transferrable unless approved by the Board, and is a mere privilege rather than a contract or property right. Renewal requires a letter of intent and complete documentary requirements submitted at least one (1) month before expiration, with no outstanding financial obligations.

Licensees are prohibited from allowing access to Filipino citizens wherever located, foreign nationals within Philippine territory, persons below twenty-one (21) years of age, and unregistered players. The registered website must also not be accessible within Philippine territory or in territories where online gaming is prohibited.

Frequently asked questions

Can a foreign company own a PAGCOR internet gaming licence in the Philippines? A foreign corporation may qualify as a Foreign-based Licensee, but it must engage a PAGCOR-accredited local gaming agent and a PAGCOR-accredited Gaming Content Provider and/or Support Provider. Foreign equity in gambling is generally limited to 40% under the Foreign Investment Negative List, except for entities covered by investment agreements with PAGCOR.

How much capital is needed for an internet gaming licence? The regulations require an authorized capital stock of at least Php 100,000,000 with paid-up capital stock of at least Php 25,000,000.

How long is a PAGCOR internet gaming licence valid? The licence, whether original or renewed, is valid for two (2) years.

Practical takeaways

• Foreign applicants must use the Foreign-based Licensee track and appoint a PAGCOR-accredited local gaming agent.
• Prepare for the Php 100,000,000 authorized capital and Php 25,000,000 paid-up capital thresholds, and confirm the 40% foreign equity limit.
• Ensure the operating site does not exceed 25,000 square meters and is not in a residential or PAGCOR-restricted area.
• Complete pre-operational requirements, including the performance bond, independent testing laboratory certifications, and IP blocking, before the Notice to Commence Operations is issued.
• File renewal requirements at least one month before the two-year licence expires.

Primary sources

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

Internet Gaming Licensing RegulationsOpen in Law LibraryDownload PDF

Regulatory Framework for the Issuance of Gaming License for the Establishment of Gaming VenuesOpen in Law LibraryDownload PDF

PAGCOR Technical Standards for EGMs v1.0Open 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.