Are online casinos legal in the Philippines?

Until recently, the Philippines remained a country with one of the most liberal policies towards online casinos. However, the situation changed in 2024. Two years ago, Ferdinand Marcos Jr. came to power. He was dissatisfied with the number of gambling operators in his country, which, in his opinion, “facilitate money laundering.” Therefore, on July 22, it was decided to ban Philippine Offshore Operators (POGOs), that is, those that provide services to foreigners.

Changes in legislation regarding gambling

The legality of gambling in the Philippines may be changed because the new president has a negative view of the business. Unlike his predecessor Rodrigo Duarte, who considered online casinos to be one of the areas of income, Ferdinand Marcos Jr. is skeptical. Although serious changes in legislation have not yet been carried out.But you can play in the casino now here.

Laws governing online casinos in the Philippines

The activities of foreign online casinos in the Philippines are regulated by the following legislation:

• Executive Order No. 1067-a of 1975 created the Philippine Amusement and Gaming Corporation (PAGCOR), which handles gaming licensing;
• Decree No. 1602 specifies the punishment for violating the provisions of Law No. 1067-a (up to 20 years in prison, depending on the charge);
• Executive Order No. 13 of 2017 emphasizes that only offshore organizations (with an office outside the Philippines), but not local operators, can offer participation in online casinos;
• House Bill 8910 regulates sabong and cockfighting in the Philippines.

Foreign online operators and foreign websites that have been licensed by PAGCOR are still allowed to operate in the Philippines. But physical casinos and organizations with an office directly in the Philippines are prohibited.

Licensing and regulation

Not every offshore operator can conduct legal gambling activities in the Philippines. The country issues separate licenses for casinos, bookmakers, slot machine sites and bingo.

Process of obtaining a license

To obtain a license from PAGCOR, you need to go through the following procedure:

• submitting an application along with all required documents and financial information;
• checking the accuracy of the information provided by the applicant;
• financial audit and direct on-site inspection;
• issuing licenses for relevant types of online entertainment.

Only PAGCOR officials authorized to do so may perform these activities.

Conditions and requirements for operators

To obtain a PAGCOR license, a gambling operator must meet the following requirements:

be registered as a legal entity in the Philippines;
confirmation of financial stability – the availability of sufficient funds for the effective operation of the company;
reliability of information about shareholders, directors and other officials, the absence of criminal records and questionable facts in their biography.

PAGCOR takes all necessary measures to combat money laundering. If suspicions arise, the applicant may be denied a license. Philippine offshore operators are becoming a good place for foreign financial investment and bring income to the country. Although recently the question of the ratio of benefits and harms of POGO has been controversial.

Restrictions and liability

Online casinos in the Philippines can operate according to certain rules:

Players can be persons 21 years of age and older (18 years in the Cagayan Special Economic Zone);
Online gaming such as casinos, slot machines, lotto, sports betting, and cockfighting are legal;
Filipinos can only gamble at casinos outside the Philippines;
Offshore online casinos pay taxes according to their type of business and Philippine law.

According to RA 9287, violations of Philippine online casino laws can result in sentences ranging from 30 days to 20 years:

• Up to 90 days for illegal betting;
• Up to 8 years for illegal number games (jueteng);
• Up to 12 years for organizing illegal number games;
• Up to 14 years for maintaining or operating a jueteng;
• Up to 16 years for financing the activities of a jueteng;
• Up to 20 years for protecting a jueteng.
• Online Casinos for International Players

Offshore online casinos in the Philippines are designed specifically for international players as they provide the country with an opportunity to make money. Local businesses cannot provide services to Filipinos, as the country’s leadership considers such activities harmful. But the Philippines has established itself as a hub in Asia for foreigners. Most online casinos are players from China, where the attitude to gambling at the legislative level is harsher.

Interaction with foreign players means that the casino operator can charge a commission of 10% on winnings up to ₱10,000 and 20% above this amount.

What possible changes in the laws may happen in the future?

Given the negative attitude of the current President Ferdinand Marcos Jr. towards Pogos, a ban on such organizations is possible soon. He has already announced that he will revoke the licenses of POGOs, which includes about 400 companies. This process should be completed by the end of 2024, so the future of offshore online casinos is in question. But this will hit the Chinese players who formed the backbone of such companies the hardest. Although the 40,000 Filipinos who work in this industry will have to find new jobs.

Conclusion

Until 2024, the Philippines remains an attractive destination for online casino players from other countries. Although the PAGCOR regulator is strict in its approach to licensing, and violations can lead to a significant prison term. The policy of the POGO authorities is changing in a negative direction, although the final future of offshore online casinos can be determined over time.