Internet Gaming License PAGCOR Requirements in the Philippines: New Application Guide

An Internet Gaming License (IGL) is issued by the Philippine Amusement and Gaming Corporation (PAGCOR) through its Offshore Gaming Licensing Department (OGLD). Only corporations duly registered with the Securities and Exchange Commission (SEC) may apply, and gaming must appear as a primary purpose in the Articles of Incorporation. A new applicant must file a letter of intent, a notarized application form (OGLD Form No. 1051), corporate and tax documents, a Money Laundering and Terrorist Financing Prevention Plan (MTPP), and proof of payment of the application fee. The corporation must have authorized capital stock of at least Php 100,000,000 and paid-up capital of at least Php 25,000,000. Foreign equity is generally capped at 40% for all forms of gambling.

Who may apply for an Internet Gaming License

Only corporations duly registered with the SEC may apply as an operator. A new applicant is a corporation intending to apply as an operator of a gaming venue for the first time. An existing operator is one already licensed by PAGCOR to operate a licensed gaming venue.

A corporation with foreign nationals as shareholders must comply with the latest Regular Foreign Negative List B of the Foreign Investments Act of 1991 (Republic Act No. 7042, as amended by Republic Act No. 8179). Under Executive Order No. 65, the Eleventh Regular Foreign Investment Negative List, foreign equity is limited to 40% for all forms of gambling, except those covered by investment agreements with PAGCOR under Presidential Decree No. 1869, as amended by Republic Act No. 9478.

The applicant must pass the requirements for operator suitability and comply with the submission of documentary requirements.

Documentary requirements for a new IGL application

The following must be submitted to the OGLD:

• Letter of intent addressed to the Chairman and CEO of PAGCOR
• Duly accomplished and notarized application form (OGLD Form No. 1051)
• SEC registration or its foreign equivalent
• Articles of Incorporation and By-Laws duly stamped and received by the SEC
• Latest General Information Sheet (GIS) with beneficial ownership declaration page, or its foreign equivalent
• Company overview and profile
• Organizational chart indicating the names of persons occupying the positions
• Business profile detailing the business model, plan, and projections
• Money Laundering and Terrorist Financing Prevention Plan (MTPP)
• Duly accomplished and notarized Personal Disclosure Sheet (PDS) (OGLD Form No. 1050) of the authorized representative and key officers
• Board Resolution or Secretary's Certificate appointing the authorized representative
• Declaration of Security Compliance Officer
• BIR Certificate of Registration
• Result of evaluation issued by an accredited probity checker of the OGLD
• Proof of payment of the application fee

The Articles of Incorporation and By-Laws must show that gaming is one of the primary purposes of business. If gaming is only a secondary purpose, a copy of the board resolution ratifying the same must be submitted. The corporation must have authorized capital stock of at least Php 100,000,000 with paid-up capital stock of at least Php 25,000,000.

A foreign-based licensee must appoint an accredited Local Gaming Agent subject to existing regulations.

Locational requirements

The operating site must have a maximum floor area of 25,000 square meters, inclusive of the floor area of the Support Provider. It must not be in a residential area or any area restricted by PAGCOR.

The applicant must submit a lease contract or certificate of ownership of the operating site indicating the floor area. In the absence of a city or municipal ordinance stating otherwise, an original or certified true copy of a letter of no objection (LONO) issued by the local government unit where the licensee's office will be located is required.

Pre-operational requirements

Before commencing operations, the licensee must comply with the following:

• Posting of the performance bond
• Onsite access for viewing and extraction of essential data from the back office, with a download or export function
• Certification from an independent testing laboratory that the betting system of the licensee's website was extensively tested and found compliant with standards: all data are captured, accounted, and reported by the system; and the game is fair, secure, and able to be audited and operated correctly
• Certification from an independent testing laboratory attesting to Internet Protocol (IP) blocking of all Philippine IP addresses, excluding an IP address designated by PAGCOR
• AMLC Certificate of Registration
• Manpower list
• Responsible gaming program
• Pre-operational inspection and walkthrough by the OGLD and other relevant departments
• Notice to Commence Operations issued by the OGLD

Renewal and submission rules

A licensee must submit a letter of intent to renew its license together with the complete documentary requirements at least one (1) month prior to the expiration of its license. Renewal requirements include the notarized application form for renewal, the latest GIS with beneficial ownership declaration page, the PDS of the authorized representative and key officers, the latest Income Tax Return, the AMLC Certificate of Registration, the result of evaluation by an accredited probity checker, and proof of payment of the renewal fee. If there are material changes in corporate structure, a new organizational chart, a Board Resolution or Secretary's Certificate appointing a new authorized representative, and a Declaration of Security Compliance Officer must also be submitted.

All documentary requirements must be labeled and arranged in order as listed in the Checklist of Requirements, and printed on A4-size paper for submission to the OGLD Office. Applications with incomplete information or requirements will not be accepted.

Frequently asked questions

How much capital is needed for a PAGCOR internet gaming license? A new applicant corporation must have authorized capital stock of at least Php 100,000,000 and paid-up capital stock of at least Php 25,000,000.

Can foreigners own an internet gaming company in the Philippines? Foreign equity is limited to 40% for all forms of gambling under the Foreign Investment Negative List, except those covered by investment agreements with PAGCOR.

When should a licensee file for renewal? A letter of intent to renew, together with complete documentary requirements, must be submitted at least one (1) month before the license expires.

Practical takeaways

• Only SEC-registered corporations may apply, and gaming must be a primary purpose in the Articles of Incorporation.
• Prepare at least Php 100,000,000 in authorized capital stock and Php 25,000,000 in paid-up capital.
• Foreign equity is generally capped at 40% for all forms of gambling.
• The operating site must not exceed 25,000 square meters and must not be in a residential area.
• Incomplete applications will not be accepted, so arrange documents per the Checklist of Requirements on A4 paper.

Primary sources

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

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

Internet Gaming License Requirements (New Application)Open in Law LibraryDownload PDF

Authorized Provider Requirements (New Application)Open in Law LibraryDownload PDF

Internet Gaming License Requirements (Renewal)Open in Law LibraryDownload PDF

Local Gaming Agent Requirements (New Application)Open 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.