PHILIPPINE OFFSHORE GAMING OPERATOR (POGO)
Philippine Amusement and Gaming Corporation (PAGCOR) conceptualized Philippine Offshore Gaming Operator (POGO) to enable the Philippine government to capture a greater share of the growing, yet previously unregulated, online gaming pie.
In 2016, PAGCOR issued rules and regulations covering the operations of POGOs. A POGO refers to an entity that offers and participates in offshore gaming services by providing games to players, taking bets, and paying the winning players. The gaming activity refers to online games of chance through the internet, using a network and software, exclusively for offshore-authorized players who have registered and established an online gaming account with the PAGCOR-licensed POGO. Filipino citizens, even while overseas, are not allowed to play.
PAGCOR can issue a POGO license to qualified operators, which could be Filipino-based operators or foreign-based operators.
The POGO framework also covers service providers that provide the various components of gaming operations, such as the gaming software provider, business outsourcing provider, and content streaming provider. These providers also need to secure a PAGCOR license.
POGOs require three categories of office space. Category one are those that have live streaming where there are ladies that serve as dealers for online games. Category two and three, meanwhile, are sub sectors of the business process outsourcing (BPO) industries which provide back office support.
"So for example, if there are questions on how a game is played online, they will provide clarifications. That is why you need a lot of Chinese and Mandarin proficient people and that is why they require a lot of office space. And in the same manner, if they have difficulties, if for example the website is down, there has to be an IT guy."
As of Q2 2018, there are 55 accredited POGOs, of which 45 are e-casinos and 10 taking sports bets. The number of POGOs is expected to grow, considering that the original cap of 50 licensees was waived by PAGCOR.
All foreign-based and Philippine-based operators, including those that have already been issued a license to operate, are required to register with the Revenue District Office (RDO) having jurisdiction over the principal place of business on or before the commencement of business.
The "commencement of business" shall be reckoned from the day when the first sale transaction occurred, or within 30 calendar days from the issuance of the Mayor’s Permit or Professional Tax Receipt (PTR) by the local government unit or the Certificate of Registration issued by the Securities of Exchange Commission (SEC), whichever comes first.
The minimum documentary requirements to prepare and submit are BIR Form No. 1903, SEC Certificate of Incorporation or License to Do Business in the Philippines, Articles of Incorporation, Mayor’s Business Permit, Payment of Registration Fee, BIR Form No.1906, a final and clear sample of principal receipts or invoices, and the appointment letter of the Local Gaming Agent.
If a POGO transfers its registered address to a new location, it is the duty of the operator or its Local Gaming Agent to file a BIR registration update (BIR Form No. 1905) on the transfer to the new business address.