POGO Sites in the Philippines – Role, Licensing, and Social Impact
What Is POGO’s Meaning in the Philippines?
To grasp the meaning of POGO in the Philippines, we must first say that the abbreviation stands for “Philippine Offshore Gaming Operator” POGOs are online gambling platforms that primarily serve players located outside the country, with licenses regulated by the Philippine Amusement and Gaming Corporation (PAGCOR).
POGOs have a profound impact on several areas of life in the Philippines. Economically, they generate substantial revenue and create employment opportunities. However, their presence also poses challenges related to tax compliance, labor practices, and land use.
Some erroneously believe that POGOs solely benefit foreign players, neglecting their contributions to the local economy. Additionally, there are misconceptions about these operators facilitating money laundering, which authorities actively address through stringent regulations and monitoring.
How Philippine Offshore Gambling Operators Are Licensed
To obtain a POGO license, interested companies must go through a specific process overseen by the Philippine Amusement and Gaming Corporation. Step one involves a thorough screening of the applicant’s background, reputation, and financial capabilities.
The application is open to both local and foreign entities, provided they meet the stringent requirements set by PAGCOR. However, the Clark Development Corporation (CDC) recently announced that it will no longer approve or license offshore gaming operators. Regardless, these are the steps applicants must follow:
- Step 1: Submission of Application – Interested companies submit a Letter of Intent to the Offshore Gaming and Licensing Department (OGLD)
- Step 2: OGLD Approval – After the OGLD is approved, the applicant has 30 days to provide documents.
- Step 3: Submission of Documents – The Applicant must submit the documents and pay an accreditation fee.
- Step 4: Background Screening – PAGCOR conducts a comprehensive background check on the applicant, evaluating their reputation and track record.
- Step 5: Financial Evaluation – PAGCOR assesses the financial stability and capability of the applicant.
- Step 6: Compliance Verification – The applicant’s adherence to responsible gaming policies, security measures, and regulatory requirements is thoroughly verified.
- Step 7: License Approval – Once the applicant is deemed eligible, PAGCOR grants the POGO license.
The licensing process is open to both local and foreign companies that wish to operate as POGOs in the Philippines. As part of the application, companies must demonstrate that they are credible and have a self-sustaining business and pay a gambling license tax.
In addition to financial capacity and legal compliance, POGO applicants must submit comprehensive documentation detailing their business plans, security measures, and responsible gaming policies.
POGO License Types
PAGCOR’s POGO licenses are categorized into various types, reflecting the scope and scale of the operator’s services. Differentiating these licenses is essential to regulate effectively the diverse range of POGO gaming operations and other service providers that are based in the country.
There are four main license groups, covering the categories of operations that a POGO in the Philippines can fall into. We reviewed each of these permits in order to explain what is the scope of allowances that it grants. Here’s more information.
| License Type | Function |
|---|---|
| POGO License | In the Philippines, this license permits companies to function as offshore gaming operators, encompassing a range of online gambling activities like casino games, sports betting, lottery, and interactive gaming services. |
| POGO Service Provider (PSP) License: | The PSP license is granted to companies offering support and services to POGOs, including call centers, IT support, game development, software solutions, marketing, and related services. |
| POGO Offshore Gaming License: | Companies hosting and managing online gaming platforms and infrastructure for POGOs receive this license, entailing server hosting, data management, security, and technical support to ensure smooth operations. |
| POGO Business Support License: | For companies providing non-gaming business support services to POGOs, this license covers administrative, human resources, finance, legal, recruitment, and other related functions. |
This trend highlights the strong influence and investment from Chinese companies, shaping the dynamics of all POGOs in the Philippines. As the market continues to evolve, the presence of Chinese-owned gambling sites underscores the nation’s position as a prominent player in the global online gaming arena.
Services Offered by POGOs
POGOs are classified under “business process outsourcing” (BPO) and provide an array of services to their clientele. These include IT support, gaming software development, live streaming of games, strategic support, customer relations services, and more.
They contribute significantly to the country’s economy and job market. POGO work is one of the desired occupations for Filipinos and Chinese nationals alike. Let’s take a look at the services offered by properly licensed companies of this type in the Philippines.
Customer Support
Customer support is an integral aspect of POGO operations, ensuring hassle-free gaming for players. Companies employ skilled IT professionals and representatives who handle inquiries and technical issues and provide personalized assistance.
Notable examples of effective customer support can be seen at many of the best online roulette sites that also offer helplines of companies in some IT branches.
Gaming Software
Answering the question “what is POGO” goes through a detailed explanation of gaming software companies and their operations. Gaming software is the backbone of POGO games, and it also plays an instrumental role in making the experience what it is for players.
Renowned software providers like Playtech and Microgaming are an indispensable part of the immersive gaming experience at the top online slots sites. Given the importance of software, some POGO gaming companies specialize in its development.
Live Streaming
Live streaming enhances the interactive nature of online gaming, bringing real-time casino adventures to players’ screens. Leading POGOs incorporate advanced live streaming technologies, enabling games like poker and blackjack to come to life at the top live casino sites in the Philippines.
Players in Asia can immerse themselves in the action, interact with live dealers, and engage with a well-made interface, all from the comfort of their homes thanks to companies like Oriental Game, Vivo Gaming, and Asia Gaming.
Are POGOs Hiring in the Philippines?
A big POGO in the Philippines is the targeted job for a big majority of the workforce in the country. These companies hire a diverse range of professionals to fulfill various roles within their operations.
Some of the positions are tightly related to the online casino industry, but applications of others go way beyond the gambling sites in the Philippines. These are the most common jobs:
- Online Casino Staff: This category encompasses dealers, customer service representatives, game developers, and technical support personnel involved in POGO operations.
- IT Professionals: POGOs rely on IT specialists to maintain and support their online gaming platforms, networks, and systems, ensuring smooth functionality.
- Finance and Accounting Professionals: POGOs employ accountants, financial analysts, and other experts to handle financial operations, payroll, and taxation matters efficiently.
- Compliance Officers: Within the regulatory framework surrounding POGOs, compliance officers play a crucial role in ensuring adherence to relevant laws and regulations.
- Human Resources Personnel: POGOs maintain dedicated HR departments responsible for recruitment, employee relations, and other HR-related functions.
- Marketing and Advertising Specialists: To enhance visibility and attract customers, a POGO in the Philippines may hire marketing professionals with expertise in promoting their services effectively.
Chinese workers dominate the POGO industry in the Philippines due to the popularity of online gambling in China and their language proficiency. The country’s proximity and skilled workforce attract Chinese companies to operate POGOs.
Qualifications vary across roles, with fluency in Mandarin and English sought for customer support, relevant degrees in finance and accounting, and expertise in gaming regulations for compliance officers. The Solaire Resort and Casino is a prime example of a dream place to work at.
How Much POGOs Pay in Taxes
POGO’s meaning doesn’t make it immediately clear that paying taxes will be involved in this line of work, but indeed, taxes are an important part. PAGCOR has implemented a profitable licensing procedure that enables businesses to keep growing and to allocate money to important Filipino projects.
Philippine offshore gaming operators contribute immensely to the country’s economy via taxes. The stringent screening and evaluation of applicants ensure only credible and financially capable operators are granted licenses. This approach has led to a substantial increase in licensing fees in recent years. Here’s more:
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.Corporate Income Tax In the Philippines, POGOs are typically liable for the standard corporate income tax rate of 30% applied to their net income.
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.Franchise Tax POGOs must also remit a franchise tax equal to 5% of their gross gaming revenue (GGR), which is calculated by subtracting the total winnings paid out to customers from the total bets received.
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.Value Added Tax POGOs might be subject to a 12% VAT on their gross receipts unless they meet specific criteria for VAT exemptions or zero-rating.
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.Withholding Tax POGOs must comply with Philippine tax regulations by withholding and remitting taxes on the salaries, wages, and other compensations paid to their employees.
The money generated from POGOs goes directly into the country’s budget. PAGCOR runs various relief operations having a profound social impact and uses the money to fund them. The taxes collected are used for various government initiatives.
In 2020, PAGCOR promptly responded to calamities and natural disasters, conducting relief operations and distributing relief packs nationwide worth PHP17.41 million. The packs contained food items like rice and canned goods, as well as non-food items such as blankets.
Gambling Winning Taxes
POGOs are not accessible to Philippine residents on paper, so local players need not concern themselves with gambling winning taxes. However, non-resident players might be subject to taxes on their winnings, depending on the regulations in their home country.
The Philippine Tax Code lacks clarity regarding gambling earnings. In principle, gambling income below PHP 10,000 is taxed at 10%, while earnings exceeding that threshold are taxed at rates of 20%. However, the practical implementation and enforcement of these tax rates may vary.
The Full Licensed POGO Company List
To assist you in your further endeavors, we have prepared a list of the best legit PH gambling sites. At the moment of writing, the list of POGO in the Philippines looks like this:
- 66 Global Solutions Inc
- 888 World Solutions Inc
- Axria Technologies Inc.
- Benestar Co., Ltd.
- Bigger Success Limited
- Daxifa Corporation
- Dynamic System Limited
- Full Advantage Investments Limited
- Genx Sports International Limited
- Golden Dragon Empire Ltd.
- High Zone Capital Investment Group Limited
- 12 Imperial Choice Limited
- Infiniweb Technology Inc.
- KNW Technology Inc
- Lucky South 99 Outsourcing Inc
- MG Universal Link Limited
- Micro Info Systems Ltd.
- Most Success International Group Limited
- New Wave Infotech Limited
- OG Global Access Limited
- Oriental Game Limited
- Prestige IOM Limited
- Riesling Capital Limited
- Saint Wealth Limited
- Shaw Global Leisure Limited
- Smarc Group International Limited
- Sohu Expert
Int’L Management Solution Inc. - Tech Innovation Management Limited
- Vertex Digital Entertainment Technologies Inc.
- VIP Global Solutions Limited
- Wanfang Technology Management Ltd.
- Winherld Entertainment World Limited
- Xionwei Technology Co. Ltd. Inc.
Please note that the list of licensed POGOs provided is not final. PAGCOR is in the process of revoking licenses to companies under suspicion of conducting illegal activities. Meanwhile, new companies appear on the market as well.
The Social Impact of POGOs
On the whole, POGOs have a net positive impact on society, with the benefits surpassing the drawbacks. The substantial gambling tax revenue generated by POGOs contributes to improvements in various sectors of life, supporting critical public services and development projects.
What’s more, the regulated operation of POGOs ensures responsible gaming practices and helps keep the adverse effects of gambling at bay while contributing positively to the nation’s progress.
Positive Consequences
- Employment Opportunities
- Regulation and Consumer Protection
- Community Development
- Gambling-Related Harm Reduction
PAGCOR actively mitigates the adverse effects of gambling by enforcing regulations and promoting responsible gaming. Compliance and openness are maintained in POGO activities through routine audits.
Collaborating with government agencies, PAGCOR makes sure that no illegal gambling is conducted on the territory of the country. At the same time, it raises public awareness with regard to the problems related to playing for real money.
What POGO Is Not
While there is much POGO news in the Philippines, a distinction must be made between what is true and what is not. This section aims to highlight that there are misconceptions about POGOs, stressing the crucial distinction between legitimate operations and illegal businesses.
It is important to recognize that POGOs should not be generalized to illegal entities. For further clarification, you can refer to PAGCOR’s explanation on what POGO is not.
FAQ
In this section, you will find answers to frequently asked questions about PAGCOR’s POGO definition and the work of the companies involved. From the meaning of POGO in the Philippines to other questions requiring more investigation, we provide good coverage and answers.
What is POGO in the Philippines?
The meaning of POGO is "Philippine Offshore Gaming Operator", and these companies operate online gambling platforms catering to players outside the Philippines. However, this is just a breakdown of the abbreviation, while, in fact, these companies can operate a wide spectrum of businesses.
Is POGO illegal in the Philippines?
No, POGOs are not illegal in the Philippines. They operate under licenses issued by PAGCOR (Philippine Amusement and Gaming Corporation), which regulates and oversees their activities to ensure compliance with gaming regulations. For more information on the licensing process, you can explore the details.
Which is the biggest POGO in the Philippines?
The landscape of POGOs is constantly evolving, making it difficult to pinpoint the biggest provider of POGO services at any given time. However, based on reports from Guballa, NOCC is the biggest provider in this category – with more than 6700 workers.
Did China blacklist the Philippines due to POGO?
China did express concerns about its citizens working for POGOs in the Philippines illegally. So, this is not one of the common POGO misconceptions. The Chinese government issued travel advisories to discourage its nationals from engaging in such activities.
What kind of POGO work is available?
The variety of POGOs offer a variety of job opportunities in different areas. Some common roles include online casino staff, IT professionals, finance and accounting experts, compliance officers, human resources personnel, and marketing and advertising specialists.