ICE Asia Digital 2020 kicked off today for three full days of exciting and intelligent content around the future of Asia’s gaming scene, including innovations, challenges, and expert opinions. More industry insights are available in gaming and gambling news from every corner of the world.
The Philippine Amusement and Gaming Corporation (PAGOR) has been instrumental in working with the ICE Asia brand in the development of the show (including support for both the digital event in 2020 and the planned 2021 event to be held in Manila). Clarion Gaming had an interview with Andrea Domingo, the Chairman, and CEO of PAGCOR, to answer a few questions before her discussions at ICE Asia Digital 2020.
PAGCOR is headlining ICE Asia Digital 2020 this June. Why was it important for PAGCOR to throw its support behind this event?
PAGCOR needs to support events like ICE Asia Digital 2020 to broaden its market and establish its presence, not just in the Philippines and Asia, but globally. Considering that PAGCOR is both a regulator and an operator, it needs to keep abreast of gaming developments worldwide, especially during this pandemic. One of the functions of PAGCOR is to provide funding for the government, which is badly needed now. Participating in events like this, PAGCOR will learn from other gaming regulators and operators what to do to cope with the current situation.
How has the Philippines emerged as a central hub for gaming in Asia and the ASEAN? What hurdles will it have to navigate to maintain its crown in the region?
Throughout its history, the Philippines has been a pioneer in gaming, emerging as a central hub in the region. This fits nicely with our current management’s vision. We ensure that there is a level playing field, maintaining transparency, and regulating and operating with credibility and integrity. Furthermore, the Philippines is known for tourism, entertainment, and hospitality. Foreign players do not just come here to play, but also to enjoy other attractions that our country has to offer. With the emergence of the Integrated Resorts and Casinos, there is now a holistic approach to tourism, entertainment, and amusement. There are a few hurdles that we need to navigate to maintain its lead in the region, such as:
a) Conservatives in the Philippines who believe that gambling is evil.
b) The emergence of other countries that would want to go and develop their respective gaming industry, such as Japan, Cambodia, Vietnam, Malaysia, Laos, Singapore, Korea, and Taiwan.
c) Politics and opposition of one small group whose sole objective is to bring down the gains of the current administration.
d) The COVID-19 pandemic that requires social distancing and other health protocols and overcoming the fear it has caused.
The gaming industry in the Philippines is the third-highest source of revenue after taxes. How big is a role that this sector has to play in securing the country’s economic future post-COVID-19?
The gaming industry, specifically PAGCOR, plays a significant role in securing the country’s economic future post-COVID-19. People need to realize that PAGCOR and the Government do not only benefit from the gaming fees and taxes but trigger economic activities as well. The whole industry employs about 132 000 direct hires. It also generates many other economic activities and businesses like restaurants, hotels, malls in IRs, services, transport, and real estate. There will even be more economic and employment opportunities when other gaming stations and casinos open.
The Senate Minority Leader Franklin Drilon has called PAGCOR and the PCSO low hanging fruit that should be sold off to raise funds to aid the fight against COVID-19. What would you respond to this?
PAGCOR is one of the biggest government earners next only to the Bureau of Internal Revenue and the Bureau of Customs. To harvest it and toss it to the private sector will mean cutting down a tree that bears sweet fruits for all Filipinos and giving it to a very few already rich persons instead. Since July 1, 2016, PAGCOR has increased its revenues exponentially, and all financial indicators show an exponential increase in dividends. Its contribution to nation-building almost doubled from 2015 to 2019. PAGCOR owned and operated casinos generated 69.40 billion in 2019, up 25.89 billion from 2015, while licensed casinos brought in 181.37 billion, almost 100 billion more than in 2015. POGOs accounted for a still respectable 5.73 billion towards GGR. In 2018, PAGCOR was recognized by President Rodrigo Duterte in his state of the nation address as the corporation with the highest remitted dividend among all the government-owned and controlled corporations. With the passage of the Universal Health Care Act, and the recognition of PAGCOR as one of the highest revenue earners, PAGCOR has a task to help the funding of the said Act.
A moratorium was placed on the issuing of POGO licenses from August 2019 until the end of this year, pending review. What is the situation as of today?
The moratorium is still in place. Until we finish our evaluation of the whole operating manual on POGOs and have arrived at a much superior one, we will not lift the ban.
Do POGOs have an important role to play in helping the industry in Asia to operate in a sound, regulated framework?
POGOs play an important role in helping the industry in Asia to operate in a sound and regulated framework. Considering that the current trend under the new normal is doing business online through the internet because of the need to have physical distancing, POGOs will now be a trend in gaming. There will be players who will prefer to play online. Thus, there is a need to ensure that proper regulations are in place to address money laundering, prohibiting banned players like minors, responsible gaming, data privacy, cyber fraud, proper collection of bets and payouts, auditing, and ensuring that proper taxes are remitted to the government.
China has been very clear about what they think of online gambling. Is their voice loud enough to upset plans for a stable, regulated framework?
I think this has been addressed. The Philippines has its sovereignty and laws that we enforce within our jurisdiction and China respects that, as we respect their laws.
We have been coordinating with the Embassy of China to ensure that only legitimate POGOs, those that are registered under Philippine laws, are allowed to operate in our country.
Andrea Domingo will be a keynote speaker at ICE Asia Digital 2020, including discussions on both Day 1 (June 8) and Day 2 (June 9) of the event.
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