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Does Philippine Licensing Problems Offer an Opportunity to Thailand?

This regulatory regime has produced significant income for the country and continues to play a vital role in the Philippines economy.

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Philippines has for a number of years found itself in the unique position of being the only country in Asia that licenses online gambling sites, done under the auspices of the Philippine Amusement and Gaming Corporation (PAGCOR), which also runs land-based casinos in the country, along with VIP slots clubs and bingo parlours.

This regulatory regime has produced significant income for the country and continues to play a vital role in the Philippines economy.

However, like a number of other jurisdictions around the world, such as the Gibraltar and Malta gaming authorities, licensing and regulation only extends to online casino and bingo operators offering services to players from other countries.

These are known as Philippine Offshore Gaming Operator (POGO) licenses. It remains illegal for Filipinos to gamble online at casinos licensed in the Philippines, and for Philippines-licensed operators to advertise online gambling services within the country.

At the same time, Filipinos are technically free to gamble at online sites that are not regulated by PAGCOR, but instead operate under the authority of another jurisdiction. This creates a somewhat unclear regulatory framework, but this does not seem to have inhibited the rate at which Filipinos play online.

However, it does seem to have impacted Philippines position in the industry to some degree, as other jurisdictions have come to supersede it in prominence.

Why Philippines has been attractive to offshore gaming companies

PAGCOR grants licenses to casino sites using RNGs  and which offer online casino games, including slots, card and table games, as well as online bingo. This means that sites that are regulated in Philippines need to be demonstrably fair and there is some form of redress available if necessary.

On the industry side, online casino operators have been attracted to Philippines because PAGCOR’s role as a regulator has meant that online casinos who are licensed by it are perceived by players around the world as being trustworthy sites where they can be assured of a fair gaming environment.

In addition, Philippines is a country where there is a high degree of internet penetration, usage and infrastructure, which has meant that there are skilled local staff available who foreign companies can call upon. This is coupled with good levels of education and English proficiency.

Therefore, in terms of creating an environment in which online businesses can develop and grow, Philippines has to date been a logical choice for online casino operators, especially considering the country’s geographical location and the easy access it provides to the rest of Asia.

However, PAGCOR has somewhat limited itself through not allowing locally-licensed gambling sites to accept Filipino players.

It has a monopoly when it comes to land-based gambling as it controls all of the bricks and mortar casinos in the country, but by choosing not to regulate and control online gambling within its borders (as, for instance, is the case in the UK), it has excluded itself from a potentially lucrative market.

There has also been some uncertainty as to how many new POGO licenses PAGCOR would grant, and how many existing ones would be renewed. The lack of clarity around this important issue — as well as a suspicion that operators are going to be taxed more and charged more for licenses in the future — has in recent years made PAGCOR less attractive as a licensing authority.

In the light of this, it is possible that other countries in Asia could try to take advantage of this and grab a seat at the table themselves in the future.

Potential for Thailand

Thailand, for instance, has the potential to become a leading player in the licensing and regulating of Asian online gambling sites.

Its location makes it attractive to operators looking to penetrate the Asian market, as does the country’s low corporate tax rate of 20%. The very low cost of living compared to other major centres in the region also has great appeal for offshore companies, as does the lifestyle on offer. Thailand also has high levels of mobile phone penetration and internet use, and a significant sector of the population is tech-literate, which makes it attractive for foreign investors and employers.

In addition, there has recently been a proliferation of illegal gambling sites being operated from within Thailand, mainly aimed at players in South Korea. However, this is a problem that has been shown to be largely eradicated if there is a recognised online gaming authority with proper powers in place.

Likewise, a regulatory system produces significant amounts of revenue for the state’s coffers. Data from the UK Gambling Commission and the Malta Gaming Authority, for instance, demonstrate the sort of income that can be produced by regulating online gambling.

At the moment, Thailand does not allow online gambling sites to operate within the country.

However, in order for Thailand to become a regulatory regime, it would not be necessary for its position on gambling per se to change, nor would it necessarily need to relax its stance on controlling the sort of online content that can be accessed from within the country.

This would be in line with the policies of a number of other online gambling jurisdictions, who only licence operators that offers their services to countries beyond its own borders.

If the government wanted to retain its current position in relation to gambling, both land-based and online, it could still take advantage of the country’s geographical location, a lifestyle that foreigners envy, and the low corporate tax rates currently on offer, to become a central player in the licensing and regulation of Asian online casinos.

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Asean

ASEAN, Canada, UN Women launch 5-year programme to advance Women, Peace and Security Agenda

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Joint Press Release ASEAN, Canada, UN Women jointly launch 5-year programme to advance Women, Peace and Security Agenda

Jakarta/Ottawa/New York, 24 February 2021 – The Association of Southeast Asian Nations (ASEAN), Canada and UN Women jointly launched today a five-year programme to expand and strengthen women’s leadership and participation in conflict prevention, resolution and recovery in South-East Asia.

The CAD 8.5 million (US $6.36 million) programme, “Empowering women for sustainable peace: preventing violence and promoting social cohesion in ASEAN”, is funded by Global Affairs Canada to support ASEAN and the implementation of the ASEAN-Canada Plan of Action 2021-2025, with the support of UN Women as a lead UN partner.

“Canada is proud to launch this flagship initiative that uses the women, peace and security approach to promote inclusive and sustainable peace and security in the region, while addressing the systemic gender inequality,” said Diedrah Kelly, Canada’s Ambassador to ASEAN.

ASEAN has made important strides to advance women, peace and security agenda, including the adoption of the first ‘Joint Statement on Promoting Women, Peace and Security in ASEAN’ in 2017, the launch of the ASEAN Women’s Peace Registry in 2018, and convening the first ASEAN Symposium on Women, Peace and Security in 2019 and the ASEAN Ministerial Dialogue on Strengthening Women’s role for Sustainable Peace and Security in 2020.

Secretary-General of ASEAN Dato Lim Jock Hoi said, “ASEAN is working concertedly to advance women, peace and security agenda across the three ASEAN Community Pillars as part of our commitment to promote gender equality and the roles of women in the implementation of the ASEAN Comprehensive Recovery Framework.”

The COVID-19 impact has increased the risks for women and girls in fragile and conflict-affected contexts and this challenges us to re-examine threats to human security. “The pandemic highlights the important linkage between peace, humanitarian and development and the critical need for women’s leadership and participation to ensure effective and comprehensive response, from policy decision-making to peace building and pandemic response,” said Jamshed Kazi, UN Women Representative and Liaison to ASEAN.

The new programme reflects the commitment of ASEAN and Canada to promote gender equality and to respond to an increasingly widespread calls across the globe for women to be empowered to lead and participate in peace and development.

ASEAN includes Brunei, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam.

For more information, please contact:
Montira Narkvichien
Regional Communications Specialist
UN Women Asia and the Pacific
Tel: +66 2 288 1579 | Mobile: +66 81 6688900 | Email: [email protected]

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Olivier Languepin

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JAKARTA, 23 February 2021 – Today, ASEAN Secretariat launched the Regional Study Report on Labour Productivity in ASEAN.

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Asean

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Chief among India’s concerns is that Indian exporters have been denied a level playing field in the Southeast Asian market. Moreover, New Delhi believes that China has taken undue advantage of the ASEAN-India FTA (AIFTA) due to weak rules of origin.

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India, ASEAN Agree to Review FTA Scope, Address Uneven Market Access

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