The Philippine Amusement and Gaming Corp (Pagcor), the country’s gaming regulator, has very limited enforcement powers against illegal gambling operators, says Marie Antonette Quiogue, a gaming law expert and chief executive of Metro Manila-based Arden Consult.
But “through its rule-making and accreditation of providers,” the agency “can cut off the very supply chain that illegal operators depend on,” noted Ms Quiogue in a paper published on Saturday.
She added: “Properly enforced, this authority can be game-changing – making the difference between an unregulated free-for-all and a market where operators, suppliers, and platforms are forced to choose between compliance and exclusion.”
According to the lawyer, the “unchecked growth of illegal gambling websites, many of them hosted overseas, … continue to siphon off untaxed revenue while exposing Filipinos to unregulated play”.
“This confusion has fuelled a public narrative that lays the blame at Pagcor’s feet, when in fact the power to investigate, prosecute, and shut down illegal operators lies with law enforcement and other agencies,” she noted.
Ms Quiogue added: “By continuing to miscast Pagcor as the enforcer, debate risks being trapped in the wrong frame – scapegoating a regulator with no police powers instead of strengthening the bodies that do.”
Earlier this month, members of the country’s Senate started discussing a path of tighter regulation for the country’s online gambling sector. Three bills seek an outright ban, while two measures propose stricter regulations.
The Philippines’ central bank has ordered providers of electronic wallets (e-wallets) and other digital payment systems to remove links that give access to online gambling platforms in the country.
While transactions for legal, licensed online gaming in the Philippines have dropped by as much as 50 percent since the central bank’s order was implemented, Alejandro Tengco, Pagcor’s chairman and chief executive, said last week that the agency had seen a rise in what he termed “illegal” online gaming platforms.
“Currently, 60 percent of what we see in the [online gaming industry] are illegal operators, meaning those who operate outside the Philippines,” Mr Tengco stated
Based on Pagcor’s daily checks, it had identified about 12,000 non-Philippines-licensed online gaming sites in operation – compared to the 77 that are licensed in the country.
According to Ms Quiogue, while Pagcor “cannot raid underground gambling dens or summarily block websites on its own,” the agency can “contribute to the fight against unlicensed gambling through coordination and intelligence-sharing”.
The lawyer observed that Pagcor’s Compliance Monitoring and Enforcement Department (CMED) conducts audits and investigations to ensure that the agency’s licensees “strictly follow regulations”.
“If a licensed online gambling platform violates any of Pagcor’s regulations or the terms of its licence, Pagcor can impose administrative sanctions,” said Mr Quiogue. “These range from hefty fines and warnings, up to suspending or revoking the operator’s licence in severe cases.”
She added: “Strengthening Pagcor’s compliance monitoring could mean more resources for detecting illicit gambling and faster referrals to authorities, thereby plugging some of the enforcement gaps without giving Pagcor direct police power.”
Additionally, according to the law expert, by exercising its authority as a regulator over service and content providers, Pagcor “can deny illegal websites access to the games, platforms, and services that make them attractive to players”.
“Pagcor should intensify its efforts to blacklist or sanction any game providers, content studios, or other service partners – including payment providers – that continue to empower unlicensed gambling targeting the Philippines,” she stated.
