Pagcor License Fees
POGO In The Philippines
It’s a notoriously tough process to obtain a PAGCOR licence. There is an initial $40,000 application fee plus a $48,000 fee for the first year once approved. Licences can then be renewed subject to meeting the criteria at a cost of $60,000 per year. Any successful casino applicants will then be added to the central PAGCOR licence list. PAGCOR warns the public and Facebook against illegal gambling. The Philippine Amusement and Gaming Corporation (PAGCOR) warned the public against certain persons who have been organizing illegal Bingo games and internet/ online gambling and using Facebook to. Note: The license number shall be printed on the company ID issued by the employer. The employer shall pay PAGCOR the application fee on behalf of its employees. Subsidy by the company or payment by the employer shall be an internal company policy. PROCESSING OF GAMING EMPLOYMENT LICENSE (GEL) RENEWAL APPLICATION Step 1.
The Philippine Offshore GamingOperations (POGO) has been a major contributor to the Philippine economy sinceits entry to the country sometime in 2003. Since then, more and more foreigncompanies and entities are entering the Philippines to get a slice of thelucrative offshore gaming market. As the number of POGOs increase, regulatingthem has been a problem, thus, the Philippine government has tasked thePhilippine Amusement and Gaming Corporation (PAGCOR) with the mainresponsibility of regulating and the registration of POGOs. There are alsoother regional gambling regulators which the Philippine government allows toissue offshore gaming licenses like Cagayan Economic Zone Authority(CEZA), Aurora Pacific Economic Zone & Freeport Authority (APECO), andAuthority of the Freeport Area of Bataan (AFAB).
In this article, you will learn about the different classifications of POGOs, their applications processes and the taxes that they are subjected to in the Philippines.
- Betting operators that obtain a license will be subject to a 1.5% tax rate on gross gaming revenue, with funds to be paid to PAGCOR on a monthly basis. Gambling companies licensed in the Philippines may qualify for a special tax rate of 5% on gross revenue rather than national and local taxes.
- Pagcor revises monthly POGO license fees. AGB WebTeam - May 30, 2017. Share on Facebook. Tweet on Twitter. Tweet; Under a revised scheme announced on May 25, POGO licensees offering RNG games will be required to pay a percentage of gross gaming revenue, rather than the previous staggered flat-rate., Calvin Ayre reports.
TWO (2) DIFFERENT CLASSIFICATIONS OF POGO OPERATORS
- Philippine-based Operator – Philippine-based Operator refers to a duly constituted business corporation organized in the Philippines who will either conduct offshore gaming operations themselves or engage the services of PAGCOR-accredited service providers
- A Foreign-based Operator refers to a duly constituted business corporation organized in any foreign country who will engage the services of a PAGCOR-accredited local gaming agent and service providers for its offshore gaming operations.
WHAT IS THE PROCESS FLOW FOR APPLICATIONS FOR PHILIPPINE-BASED OPERATOR?
- Submissionof Letter of Intent addressed to the PAGCOR Chairman and CEO.
- AcknowledgesLetter of Intent and initial evaluation of applications
- Issuance of Deposit Notice and Payment Form forpayment of application and processing fee
- Uponpayment, Applicant MUST submit copy of proof of payment of the application andprocessing fees and secure clearance from FOCAS-OGLD
- Uponreceipt of the proof of payment, LD-OGLD will issue a pre-numbered applicationkit and table of checklist of documentary requirements
- Submissionof complete documentary requirements (MUST be accomplished within 3 months fromissuance of a pre-numbered application kit)
- Finalreview, recommendation and endorsement of applications to the AVP, OGLD
- BoardApproval
- Noticeof Approval to the applicant
- Paymentof License Fee/s, Performance Bond Fee and Permit to Possess Fee
- Issuanceof License to Philippine-based Operator
WHAT IS THE OFFSHORE GAMING LICENSE?
An Offshore Gaming License (OGL)is an authority granted by PAGCOR to Philippine Offshore Gaming Operators forthe establishment, maintenance and the conduct of offshore gaming operations ina specific site within the jurisdiction of PAGCOR.
No operator shall be allowed to conduct offshore gaming operations without a valid OGL evidenced by a certificate issued by the OGLD
WHAT ARE THE THREE (3) TYPES OF OFFSHORE GAMING LICENSES?
A. E-casino – refers to an OGL for the operation of Live CasinoGames or Random Number Generator (RNG) based games.
B. Sportsbetting – refers to an OGL for the acceptance and/orfacilitation of wagers in the operation of predicting the outcome and resultsof a sporting event.
C. Sportsbetting on Regulated Wagering Events
WHAT ARE THE TAXES THAT POGOs ARE SUBJECTED TO?
Like any other person or entity doing business in the Philippines, POGOs are subjected to Philippine taxes. Pursuant Bureau of Internal Revenue (BIR) Revenue Memorandum Circular No. 102-2017 POGOs are subjected to the following taxes:
- INCOMETAX –
- Incomefrom Gaming Operations, which refer to income or earning realized orderived from operating of gambling casinos, gambling clubs and other similarrecreation and amusement places and gambling pools.
- Incomefrom Other Related Services, which refers to income or earning realized orderived not from gaming operations but from such other necessary and relatedservices, shows and entertainment.
- VALUE-ADDEDTAX
- Income from Other Related Services from non-gaming operations shall be subject to normal income tax, value-added tax, and other applicable taxes, as may be deemed appropriate.
- FRANCHISETAX
- The entire gross gaming receipts/earnings or the agreed or pre-determined minimum monthly revenues/income from Gaming Operations under existing rules, whichever is higher, shall be subject to a franchise tax of five percent (5%), in lieu of all kinds taxes, levies, fees or assessments of any kind, nature or description, This income is therefore exempt from any kind of tax, income or otherwise, as well as fees, charges or levies of whatever nature, whether national or local.
- A Licensee deriving income from both gamingoperations and from other related services shall be subjected to 5% franchise tax on its gaming revenues and normalincome tax, value-added tax and other applicable taxes on its non-gamingrevenues.
- An Other Entity, specifically including thegaming agent, Service Provider and Gaming Support Provider who is also a POGOLicensee shall be taxed 5% Franchise tax on its gaming activities and subjectto normal tax rate and other appropriate taxes on its non-gaming operations.
- WITHHOLDINGTAXES
- Income payments made by POGO Licensees or any other business entity licensed or authorized by PAGCOR for all their purchases of goods and services shall be subject to withholding taxes as may be appropriate and applicable.
- Compensation, fees, and commissions or any other form of remuneration as a result of services rendered to POGO Licensees or any other business entity licensed by PAGCOR shall be subject to applicable withholding taxes under existing revenue laws and regulations.
Written by: Atty. Jon Dominic Peñaranda
The Philippines Gambling Commission, aka PAGCOR, was created through a Presidential Decree and it is controlled and owned by the government. For right now, they are the third biggest money maker for the Philippines government. They think that by the year 2021, they will be able to lead the Philippines to be the top gaming and entertainment location for the region of ASEAN. In doing this, they will have a lot of revenue coming in that will help to fund the nation-building programs. They do have a solid goal set for themselves, and their mission is pretty simple to understand. They have the desire to make an environment which will help to grow the industry of gaming and entertainment; they also want to create and uphold mandatory frame-work that will help in keeping the integrity of this industry good. There are a lot of companies that are just looking to make money for their good out there, businesses like this one are outstanding because casino operators know that the PAGCOR has more than money, they also have the trust of the government.
3/F PAGCOR House, 1330 Roxas Boulevard
Ermita, Manila 1000
Telephone: +632-521-1542 loc. 376
Email: [email protected] ; [email protected]
Website: www.pagcor.ph
Benefits of Having an Online Gambling License in the Philippines
There are a lot of good reasons to get a gambling license from the Philippines Gambling Commission, such as:
An online gambling license will allow the holder of the license to operate in the permitted countries.
The license will help to protect the business that the license is issued to.
The reputation of the business will be significant because a business without a license is not a very trustworthy business at all!
The business will have the ability to develop more as far as online games are concerned.
The money used to get the license will help the government of the Philippines.
Types of Licenses Offered by The Philippines Gambling Commission
Pagcor License Fees Renewal
There are only a few licenses that are offered by the Philippines Gambling Commission (The PAGCOR). Here are the licenses that they offer, along with some of the fees associated with them:
Offshore Gaming License
Application and PROCESSING FEES
(Onetime fee)
e-Casino:USD 50,000.00
Sports Betting:USD 40,000.00
2. Offshore Gaming Agent Accreditation
Application and PROCESSING FEES
(Onetime fee)
USD 20,000.00
3. Gaming Software/Platform Provider Registration
Application and PROCESSING FEES
(Onetime fee)
USD 20,000.00
4. Gaming Support Provider Registration
Application and PROCESSING FEES
(Onetime fee)
USD 20,000.00
5. Data Streaming/Content Provider
Application and PROCESSING FEES
(Onetime fee)
USD 40,000.00
6. BPO
Application and PROCESSING FEES
(Onetime fee)
USD 50,000.00
The History of The Philippines Gambling Commission (The PAGCOR)
Pagcor License Fees Fee
After the Philippines Gambling Commission (The PAGCOR) had first been established, they made a contract with the PCOC so that the PCOC would be able to operate their casino during the year of 1977 and it was in Manila Bay. Although that casino taught the gambling commission a lesson and from then on, they would only license the land casinos (the lesson being that the boat caught fire). During the year of 1983, the decree was set in motion that would make it so that the PAGCOR would have to contribute as the governing corporation that would conduct and establish all gaming pools and also casinos that were located within the country. During the year of 1986, however, the business changed the direction they were going and became an organization to help the government with money.
Pagcor License Fees
Conclusion
The Philippines Gambling Commission (The PAGCOR) is a trustworthy business that is just trying to help the government so that the country can be promoted more. Online casinos that are looking to get a license to operate their casino should undoubtedly check out the PAGCOR. Gambling commissions are significant to casinos, so are licenses. With the proper license, a casino operator will gain a better reputation, and they will get more customers coming to and from their site. The licenses are also suitable for those that are looking not just to help their reputation, but also will help a casino get the access that they need to operate in specific countries. So far, they have not been unfair to any business, and they only have good reviews online, meaning that they are safe and able to be trusted by casino operators that are looking to expand their business.