The online gambling market is experiencing a consistent growth with the emergence of new technologies and the increased accessibility of the internet.
The Philippine iGaming sector is expected to grow substantially in the following years and to continue generating large revenues.
South East Asia is the home to what has come to be recognized as the world’s most favorable jurisdictions for licensing and regulation of iGaming – the Philippines.
Setting up a firm in this jurisdiction is more expensive than other options but there is a favorable enough tax system for overseas firms and the rewards at the end will make the initial fees seem very small.
The Philippines is a unique and highly valuable gaming license to hold as it’s the sole license available to companies who want to do business in the highly lucrative Asian Gaming Market.
South East Asia is the home to what has come to be recognized as the world’s most favorable jurisdictions for licensing and regulation of iGaming – the Philippines. Seated in the heart of the iGaming industry’s fastest growing market, Asia, means that it’s at the forefront of the globe’s online gambling industry. Investment in high-speed internet and state of the art infrastructure shows how serious they are about the industry.
Setting up a firm in this jurisdiction is more expensive than other options but there is a favorable enough tax system for overseas firms and the rewards at the end will make the initial fees seem very small. Player and fraud protections are something that is taken very seriously and there is exceptional provision for firms that decide to set up here.
The Philippines is a relatively mature gaming market with many forms of gambling available. This country has a very distinct approach to online gambling.
There are two distinct regions for gambling purposes:
The state-owned Philippine Amusement and Gaming Corporation (PAGCOR), which operates all land-based and online casinos, bingo, sports betting, and betting establishments and is the sole authorized gambling operator in the country, and the Cagayan Special Economic Zone and Freeport or Cagayan Freeport, which is the only region in the Philippines that is not under PAGCOR monopoly.
Online casinos in the Philippines are considered to be safe for players, especially since PAGCOR itself owns and operates some online casinos. All Philippines casinos bearing the PAGCOR or the Cagayan license are safe to use, since that means that the casino has been verified and it operates within the law.
For companies looking to set up a gambling company in Asia, the Philippines is a very valuable gaming license to hold. Although it’s more expensive than other licenses, the taxation system is beneficial for international companies. A full license, covering both online casino and sportsbooks, includes a new application fee of $40,000 and an additional $48,000 per year for sports book operations payable upon license issuance. The renewal fee is $40,000.
The Philippine iGaming sector is expected to grow substantially in the following years and to continue generating large revenues.
Type of Company Entity Available for iGaming Firms:
Any limited company can become a CEZA registered enterprise.
Corporation Tax Rate:
Four to six-year income tax holiday (four year for non-pioneer firms and six for pioneers.) A special tax rate of 5% on gross income in lieu of national and local taxes. Foreign corporations also receive tax credits.
Additional Gaming Tax Rate:
Under the Restrictive Interactive Gaming License there is a tax of US$48,000 for the first year and then $60,000 for every year that it’s renewed for the first sporting event offered. This is paid up front.
Minimum Share Capital for an iGaming Company:
None
Security Requirements/Indemnity for Players Deposits:
Adequate funding must be maintained to pay all current obligations. Winnings and account balances will be paid promptly and on demand.
LICENSE FEE:
Full license: (covers e-casino and sports book):
• New application includes a fee of US$40,000 (includes non-refundable US$15,000 deposit upon submission and $25,000 that will be refunded if application is unsuccessful).
• Gaming levy is 2% of gross win per month from e-casino operations.
• Additional US$48,000 per annum for sports book operations payable upon issuance of license
• Renewal fee: US$40,000
• US$15,000 of the Renewal Fee maybe offset against the gaming levy payable each year.
• Gaming levy of 2% of gross win per month from e-casino operations
• US$60,000 per annum for sports book operations payable upon issuance of license
RESTRICTIVE INTERACTIVE GAMING LICENSE (sports betting):
• New application includes a fee of US$26,000 payable on submission of application. US$18,000 of the fee is refundable if application is unsuccessful.
• US$3,500 probity cost is chargeable per application.
• For every additional sporting event a fee of US$2,000 is payable per year.
• Upon renewal you pay a fee of US$15,000 payable on submission of the documentary requirements necessary for renewal.
• US$ 60,000 per annum for Restrictive Interactive Gaming Tax payable up front upon the renewal of the license.
License Duration:
12 months
Do Local Banks Process Online Gaming Transactions:
Yes
Bandwidth Type Available:
Online gaming industry operators are able to set up a network operation centre/hub with First Cagayan’s internet server and take advantage of the country’s high-speed services of up to DS3 capabilities.
Software Testing Requirements:
All software must be able to run on the network operation centre/hub and be designed to ensure complete privacy and confidentiality.
Reporting Requirements to the iGaming Regulators and/or Financial Regulator:
All banking and financial affairs will be conducted in accordance with generally accepted standards of recognized international banking institutions. Transaction reporting will comply with guidelines defined by the regulator.
Anti-Money Laundering Policy for iGaming Firms:
All licensees will have controls in place to detect and eliminate fraud
Restrictions on Jurisdictions from which you can take Wagers:
Bets can only be accepted from offshore players and only on offshore sporting events. No bets to be accepted from Filipino residents or on sporting events in the Philippines.
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