Remote Play Slot Machines in the Philippines: PAGCOR License Rules and Requirements

Remote Play Slot Machine operations in the Philippines are licensed by PAGCOR through its Offshore Gaming Licensing Department (OGLD), under the Regulatory Framework for Remote Play Slot Machines (effective 25 April 2024). The license allows slot machines situated in PAGCOR-operated casinos, junket operations under PAGCOR, or Integrated Resorts to be played online — exclusively by foreign players located outside Philippine territory. The applicant must be a Philippine-organized business enterprise, pass PAGCOR's probity check, and pay a non-refundable $100,000 application fee for first issuance. Below is the step-by-step licensing path.

What Remote Play Slot Machines Are, and Who May Play

Under the Regulatory Framework, Remote Play (SM) refers to a game offering where slot machines situated in PAGCOR-operated casinos, locations with junket operations under PAGCOR, or Integrated Resorts are accessed through remote gaming platforms, exclusively by foreign players located outside the Philippine territory.

An Authorized Player must meet three criteria:

• The individual must be physically in a country other than the Philippines. This excludes Filipino citizens even if abroad, and individuals in territories where online gaming is prohibited.
• The player must be at least twenty-one (21) years old.
• The player must be registered and must have established a player account.

The Remote Play (SM) Platform shall not accept bets coming from within Philippine territory and shall not be accessible in any way inside the Philippines or by Filipinos abroad.

Who Can Apply for a Remote Play (SM) License

The applicant must be a duly constituted business enterprise organized in the Philippines. It must pass PAGCOR's standard probity check for gaming operator suitability and comply with all documentary and system requirements.

The corporate requirements include:

• SEC Certificate of Registration with authorized capital stock of at least One Hundred Million Pesos (Php 100,000,000.00) and paid-up capital of Twenty-Five Million Pesos (Php 25,000,000.00).
• Articles of Incorporation and By-Laws duly filed and approved by the SEC. The AOI must show that gaming is one of the primary purposes of business; if secondary, a Board resolution on the same must be submitted.
• Latest General Information Sheet duly filed with the SEC.
• Duly accomplished and notarized Personal Disclosure Sheet of key officers.
• Mayor's Permit/Business Permit, BIR Certificate of Registration, and a Letter of No Objection from the Local Government Unit where gaming operations shall be conducted.

The operating site may be within a PAGCOR-operated casino or licensed casino with a junket agreement or integrated resorts, provided the host casino or integrated resort gives its consent to the proposed Remote Play (SM) operations.

How to Apply: The Licensing Steps

1. File a Letter of Intent addressed to the Chairman and Chief Executive Officer of PAGCOR.
2. Receive the Deposit Notice and Payment Form from the OGLD for the application fee.
3. Submit the accomplished Remote Play (SM) License Application Form with all company, location, and business requirements, plus proof of payment of the application fee.
4. Undergo ocular inspection by the PAGCOR Inspection Team to verify the legitimacy of the corporation and proposed operations.
5. Pass the probity check. The application is recommended to the Board of Directors for approval only upon complete documentary compliance, payment of the non-refundable application fee, satisfactory ocular inspection results, and compliance with probity requirements.

Fees, Bond, and Financial Obligations

The non-refundable application fees are:

• First Issuance (valid for three years): $100,000.00
• Renewal (per year): $30,000.00

Before operations commence, the licensee must post a Performance Bond equivalent to six months' Minimum Guaranteed Fee, or six months' fees for existing machines, whichever is higher. The bond is a non-transferrable, one-time payment used to cover unpaid financial liabilities.

The monthly regulatory fee is computed based on whichever is highest of:

• $15,000.00 for the first 50 machines, plus $350.00 per machine in excess of 50;
• 20% of Gross Gaming Revenue; or
• the Minimum Guaranteed Fee of $15,000.00.

The licensee is billed every 10th day of the succeeding month, payable on the 15th. Non-payment for two consecutive months results in forfeiture from the Performance Bond. An application for an additional site or transfer of operating site costs $20,000, inclusive of inspection fee and printing of one certificate.

Pre-Operational Requirements Before Going Live

Once approved, the applicant must complete the following before PAGCOR issues a Notice to Commence Operations:

• Post the Performance Bond.
• Submit the website/s where Remote Play (SM) will be conducted.
• Submit certification from a PAGCOR-accredited Gaming Laboratory covering GLI 11 – Gaming Devices in Casinos, PAGCOR Technical Standards for Electronic Gaming Machines ver. 1.0, and certification attesting to IP blocking of all Philippine IP addresses.
• Pass final inspection and system walkthrough of the Remote Play (SM) Platform, from player registration to income reporting.
• Complete a full simulation of Remote Play (SM), approved by PAGCOR.

The licensee must commence operations within three (3) months from board approval. Failure to operate within that period warrants imposition of the Minimum Guarantee Fee, corresponding demerits, and possible administrative penalties.

Platform Standards: Registration, Verification, Responsible Gaming

Player registration may be done in person at the licensee's registration area, witnessed by CMED-IG personnel, or through remote registration. The KYC process requires the player's full name, date of birth, contact number, current address, nationality, occupation, and source of income, plus a copy of the passport bio page and a real-time photo ID. Only persons twenty-one and above may register.

The platform must verify that only the registered player uses the account, through either biometrics (facial, fingerprint, or iris verification) or OTP verification sent to the registered number. It must also display PAGCOR's responsible gaming reminders upon log-in and incorporate a customer care system.

Frequently asked questions

Can Filipinos play Remote Play Slot Machines? No. Authorized Players exclude Filipino citizens even if abroad. The platform must not accept bets from within Philippine territory, and the licensee is solely responsible for ensuring no wagers are accepted from Filipinos, persons below twenty-one, or players in jurisdictions where such gaming is prohibited.

How much does a PAGCOR Remote Play Slot Machine license cost? The non-refundable application fee is $100,000.00 for first issuance, valid for three years, and $30,000.00 per year for renewal. A Performance Bond and monthly regulatory fees also apply.

How long is the license valid, and can it be transferred? First issuance is valid for three years. The license may not be transferred by sale, inheritance, succession, gift, or otherwise without prior consent of the PAGCOR Board of Directors.

Practical takeaways

• Only Philippine-organized corporations meeting the Php 100 million authorized / Php 25 million paid-up capital requirement may apply.
• Expect a $100,000 non-refundable application fee, a Performance Bond, and monthly regulatory fees based on the highest of machine count, 20% of Gross Gaming Revenue, or the $15,000 Minimum Guaranteed Fee.
• Operations must begin within three months of board approval, or the Minimum Guarantee Fee and penalties may be imposed.
• The platform must block Philippine IP addresses and exclude Filipino citizens, minors, and players in prohibited jurisdictions.
• Non-payment of regulatory fees for two consecutive months triggers forfeiture from the Performance Bond and is a ground for license cancellation.

Primary sources

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

Regulatory Framework for Remote Play - Slot MachinesOpen in Law LibraryDownload PDF

Remote Play Slot Machine Requirements (New Application)Open in Law LibraryDownload PDF

Remote Play Slot Machine License 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.