GGRAsia – Offshore online gaming ops posing as BPOs a concern: Pagcor

Offshore online gaming ops posing as BPOs a concern: Pagcor

Nov 19, 2024 Newsdesk Latest News, Philippines, Top of the deck

The state-run Philippine Amusement and Gaming Corp (Pagcor), the country’s gaming regulator, says that offshore online gaming operators “misrepresenting themselves” as so-called business process outsourcing (BPO) providers “should be treated as a serious concern”.

BPO providers are business-to-business services companies that work with various sectors, including online gaming operators from overseas.

“To effectively address illegal gaming operations [in the Philippines], companies that misuse the BPO designation must also be scrutinised and held accountable,” stated the regulator in a Tuesday press release.

The statement was issued as a clarification regarding Pagcor’s jurisdiction over Central One Bataan Ph Inc, a company identified as a BPO, operating within a freeport area in the municipality of Bagac, in Bataan province, in central Luzon.

Central One Bataan was raided on October 31 by local law enforcers, on suspicions of human trafficking and illegal activities, including online gaming operations. Representatives of Central One Bataan said last week they had filed a motion to quash the search warrant used in the October raid.

In Tuesday’s statement, Pagcor said that while the Authority of the Freeport Area of Bataan has the “power to oversee certain tourism-related activities” within the freeport area, the authority’s power to oversee “games, amusements, recreational and sports activities” is “subject to the approval and supervision of Pagcor”.

“While the Authority of the Freeport Area of Bataan may regulate specific activities and exercise authority within its jurisdiction, its power to issue licences for gaming operations remains conditional and subject to Pagcor’s oversight and approval,” noted the casino regulator.

It added: “Following the letter of the law, Central One Bataan’s involvement in online gaming activities clearly subject … to Pagcor’s jurisdiction and regulatory authority. However, records show that Central One Bataan is not one of the companies licensed by Pagcor to legally operate such activities.”

Earlier this month, the Philippine leader, President Ferdinand Marcos Jr, issued an executive order prohibiting all offshore online gaming operations in the country. Executive Order No. 74 states that the ban encompasses existing operators, licence applications, licence renewals, cessation of operations and illegal offshore gaming operations.

On July 22, the Philippine leader had said that Philippine Offshore Gaming Operators (POGOs) – now known as Internet Gaming Licensees (IGLs) – would need to end their business in that country by year-end.

Gaming lawyer Marie Antonette Quiogue said in a recent statement that, in her view, Executive Order No. 74, “based on how it is drafted, does not include special class BPOs in the list of entities that are subject to the POGO/IGL ban”.

Special class BPOs “do not fall under the categories” of either “POGO Licensee”, “POGO Gaming Agent” or “POGO Service Providers”, as “they do not provide components of operations to POGOs,” she added.

The lawyer stated: “Under the definition of special class BPOs, these are entities that are ‘servicing legitimately licensed gaming operators abroad and do not in any way handle betting but purely product marketing and customer relations.”