PAGCOR Gambling License 2025

Advantages of Holding a PAGCOR Gambling License

The Philippines represents a growing economy, which is gradually improving its legislation with the purpose of attracting more and more foreign investors and eventually creating another leading economic center in the region. It boasts a pool of highly qualified talents with excellent English language skills available at reasonable costs. Moreover, the government continues to work on improving internet infrastructure across the country, allowing online businesses to become increasingly viable and manageable. Major operators are licensed by the PAGCOR, and this benefits from the local economic environment, an indication that the Philippines has worthwhile business opportunities for gambling businesses.

The taxation system of the casino business is very friendly; that is why a PAGCOR gaming license may be cheaper than elsewhere. In place of all other taxes, the licensees shall be imposed with a 5% Franchise Tax of the gross revenues from gambling operations. What this means is that they are exempt from paying Income Tax and VAT or any other ordinary tax. Another important thing to note is that tax credits are accorded to foreign corporations.

Gambling Laws and Regulations in the Philippines

The chief regulator in the Philippines is the PAGCOR, which oversees the operation of Entertainment City-a compact equivalent of Las Vegas-as well as other casinos scattered across the country and online casinos operating from abroad. Players in the Philippines are only allowed to play at the land-based casinos regulated by the PAGCOR, provided they are at least 21 years of age, while online casinos are only licensed to offer their services to foreign players outside the Philippines.

Pieces of legislation and rules governing PAGCOR gambling licensees include the following:

• Interactive Gaming Act of 2003
• The Casino Implementing Rules and Regulations (CIRR)
• An Act Taxing Philippine Offshore Gaming Operation (Republic Act No. 11590)
• The Anti-Money Laundering Act (AMLA)
• An Act Further Strengthening the Anti-Money Laundering Law, Amending for the Purpose Republic Act No. 9160, Otherwise Known as The “Anti-Money Laundering Act of 2001”, as amended (Republic Act No. 11521)
• An Act Designating Casinos as Covered Persons Under Republic Act No. 9160, Otherwise Known As the “Anti-Money Laundering Act of 2001”, as amended (Republic Act No. 10927)
• Republic Act No. 10365: An Act Further Strengthening the Anti-Money Laundering Law, Amending for the Purpose Republic Act No. 9160, Otherwise Known as the “Anti-Money Laundering Act of 2001”, as amended
• An Act to Further Strengthen the Anti-Money Laundering Law, Amending for the Purpose Sections 10 and 11 of Republic Act No. 9160, Otherwise Known as the “Anti-Money Laundering Act of 2001”, as amended, and for Other Purposes. Republic Act No. 10167
• An Act Amending Republic Act No. 9160, Otherwise Known as the “Anti-Money Laundering Act of 2001” Republic Act No. 9194
• An Act Defining the Crime of Money Laundering, Providing Penalties Therefor and for Other Purposes (Republic Act No. 9160)

The PAGCOR has also promulgated the following regulatory manuals:

• Casino Regulatory Manual for Greenfield Zone Licensees
• Casino Regulatory Manual For Entertainment City Licensees
• Casino Regulatory Manual For Clark Special Economic Zone Licensees
• Casino Regulatory Manual For Fiesta Casino Licensees

The fight against and prevention of money laundering and terrorist financing is, therefore, treated as an utmost priority in the Philippines in a bid to ensure that criminals do not use the gambling industry to their advantage. Part of the requirements by the laws, casino owners must put in place risk management policies and record their customers for at least 5 years. The registration of players with any online gambling platform has to be carried out with detailed information. Casino owners are under obligation to give way to compliance checks when any case of suspicion of money laundering or terrorist financing comes into the books of AMLC. Land-based casinos, online casinos, ship-based casinos, and other games and sports come under the purview of AML/CFT legislation.

In addition to these, PAGCOR Anti-Money Laundering Supervision and Enforcement Department – PASED are also required to implement AML/CFT laws in casinos. The Authority is authorized to undertake a variety of supervisory works that covers preventive measures, sanctions, and other corrective measures. For the formulation, improvement and implementation of the related policies, PASED coordinates with the AMLC, other local and foreign counterparts, and casinos operators.

Top Online Casinos in the Philippines

Types of PAGCOR Licenses

There are many types of licenses available in the Philippines, depending on the licensable activity. The most common license is an Offshore Gaming License, holders of which are called Philippine Offshore Gaming Operators. Such firms are Philippine-based online offshore gambling companies that offer services to players outside of the country. This type of license is granted by PAGCOR. With the license, an online business can offer a wide array of popular gambling activities such as slots, blackjack, roulette, live dealer games, and a host of other games.

The following are the categories under which the Offshore Gaming License is divided:

• Online Casino: this is a form of online gambling, which runs real-time casinos over the internet and tends to cater to a random number of games.
• Sports Betting – a form of gambling predicated on the predicting of results and placing a bet during a particular sporting event.
• Sports Betting on Regulated Wagering Events – regulated by other jurisdictions and caters to live event audio and visual feeds to consumers.

Other relevant licenses are also granted by the PAGCOR:

• Local Agent Accreditation
• Special Class of BPO
• Customer Relations Service Provider
• Live Studio and Streaming Provider
• IT Support Provider
• Strategic Support Service Provider
• Gaming Software/Platform Provider
• Additional Operating Site to a Building Other Than That of the Existing Site
• Additional Operating Site to a Building With an Operating Site

Philippines

Capital	Population	Currency	GDP
Manila	109,035,343	PHP	$ 11,420

Requirements for PAGCOR License Applicants in Gambling Industry

In order to become eligible for the PAGCOR gambling license, the very first thing you need to do is the incorporation of a company in the Philippines. Other requirements differ depending on the type of license. If you would like to receive serious insights into the specific requirements for a particular license type, please contact us with your inquiry and our experienced lawyers from Regulated United Europe will be happy to provide you with a personal consultation.

Generally speaking, to apply for a PAGCOR gambling license in the Philippines, you must at least prepare the following documents:

• A letter of intent addressed to the Chairman and CEO of the PAGCOR
• A Personal Probity Form for all key officers including directors and company secretary with their names and details.
• A Company Probity Form with the detailed profile of the company
• A business plan
• Organogram showing individual occupying positions in the company
• Proof of the address of the business in the jurisdiction
• Original Copy of Industry Code of Good Practice
• Passport copies of shareholders, directors, and company secretary
• Evidence of police clearance for the shareholders, directors, and company secretary
• A detailed report of the internal CDD policy, including KYC procedures as will be provided by the AMLC
• Proof of payment for application fee

Offshore Gaming License application fees:

• Online casino – 50,000 USD (ca. 45,000 EUR)
• Sports Betting – 40,000 USD (ca. 36,000 EUR)
• Sports Betting on Regulated Wagering Events – 40,000 USD (ca. 36,000 EUR)

Application fee for the other licenses is the following:

• Local Agent Accreditation – 20,000 USD (ca. 18,000 EUR)
• Special Class of BPO – 100,000 USD (ca. 90,000 EUR)
• Customer Relations Service Provider – 50,000 USD approx. 45,000 EUR
• Live Studio and Streaming Provider – 40,000 USD approx. 36,000 EUR
• IT Support Provider – 20,000 USD approx. 18,000 EUR
• Strategic Support Service Provider – 20,000 USD approx. 18,000 EUR
• Gaming Software/Platform Provider – 40,000 USD approx. 36,000 EUR
• Additional Operating Site to a Building Other Than That of the Existing Site – 10,000 USD approx. 9,000 EUR
• An Additional Operating Site to a Building with an Existing Operating Site – 5,000 USD (approx. 4,500 EUR) per floor for every 3,000 sqm of floor area

The following License fees apply only to the Offshore Gaming License:

• Online casino – 200,000 USD (approx. 180,000 EUR)
• Sports Betting – 150,000 USD (approx. 135,000 EUR)
• Sports Betting on Regulated Wagering Events – one-time payment of 150,000 USD (approx. 135,000 EUR)

Licensees from online casinos and sports betting have to pay a one-time performance/security bond fee of 300,000 USD, approximately 271,000 EUR. On the other hand, licensees from a Special Class of BPO, Customer Relations Service Providers, Live Studio and Streaming Providers, IT Support Providers, Strategic Support Service Providers, and Gaming Software/Platform Providers are asked to pay a one-time performance/security bond fee of 50,000 USD or approximately 45,000 EUR. Remote Gaming Platforms

Renewal fees of an Offshore Gaming License:

• Online Casino – 50,000 USD (approx. 45,000 EUR)
• Sports Betting – 40,000 USD (approx. 36,000 EUR)
• Sports Betting on Regulated Wagering Events – 40,000 USD (approx. 36,000 EUR)

The renewal fees of other licenses are as follows:

• Local Agent Accreditation – 20,000 USD (approx. 18,000 EUR)
• Special Class of BPO – 100,000 USD (approx. 90,000 EUR)
• Customer Relations Service Provider – 50,000 USD (approx. 45,000 EUR)
• Live Studio and Streaming Provider – 40,000 USD approx. 36,000 EUR
• IT Support Provider – 20,000 USD approx. 18,000 EUR
• Strategic Support Service Provider – 20,000 USD approx. 18,000 EUR
• Gaming Software/Platform Provider – 40,000 USD approx. 36,000 EUR
• Additional Operating Site to a Building Other Than That of the Existing Site – 10,000 USD approx. 9,000 EUR
• An Additional Operating Site to a Building with an Existing Operating Site – 5,000 USD (approx. 4,500 EUR) per floor for every 3,000 sqm of floor area

How to Establish a Company for a PAGCOR Gambling License

Over the recent years, the Philippine government has made some changes to simplify and streamline the process of company formation in the Philippines, especially for foreigners. Regardless of the efforts, the process is still more complex than for the local businesspeople. We strongly advise seeking consultations with our experienced lawyers here at Regulated United Europe, who will certainly be very happy to offer the best and most cost-effective solution for your gambling business, including the comparison of other jurisdictions.

The different legal business entities available in the Philippines are a Corporation, very similar to a Limited Liability Company. However, you should note that it is not possible to have full foreign ownership. A new business can be incorporated within 8 days provided all the documents are in order and the required steps are followed through.

Capital requirements depend on the foreign equity bracket:

• 0% foreign equity (100% Filipino-owned) – 100 USD or approximately 91 EUR
• Less than 40% foreign equity – 100 USD or approximately 91 EUR
• More than 40.01% foreign equity – 200,000 USD or approximately 181,000 EUR

To reduce the capital requirements of a company that has more than 40.01% foreign equity, you can employ the following methods:

• Employ at least 50 Filipinos, and minimum required capital will be reduced to 100,000 USD (approx. 91,000 EUR);
• Provide evidence for the use of advanced technology in the operation of the company, and the minimum capital requirement will be reduced to 100,000 USD, approximately 91,000 EUR;
• Export at least 70% of your products or services, and the minimum required capital will be reduced to 100 USD, approximately 91 EUR.

Other needs towards a Philippine Corporation:

• 2-15 incorporators [the majority must be residents of the Philippines]
• At least 4 officeholders
• A president acting as the company’s signatory – no residence requirement
• A corporate secretary responsible for the company’s administration – resident of the Philippines
• A treasurer responsible for the company’s finances – resident of the Philippines
• An anti-money laundering compliance officer – resident of the Philippines
• The capital can be transferred once the company has opened a local bank account

The following documents are required to establish a Corporation for a PAGCOR gambling license:

• A Notarized Memorandum of Association
• Notarized Articles of Association
• 2 valid IDs of each shareholder
• An incorporation application form
• A verification slip form
• A copy of the municipality permission letter
• A notarized bank certificate
• For foreign corporation subsidiaries, a foreign investment application form
• A notarized treasurer’s affidavit
• A joint affidavit of 2 incorporators
• A written undertaking to change the name of the corporate by the trustee or director
• A clearance certificate from other government agencies
• A list of members and contributed amount certified by the secretary
• A confirmation of the paid registration fee
• An employee data form
• A community tax certificate
• Clearance of location and Barangay
• Proof of fire safety and electrical inspection
• An occupancy certificate and a building permit
• A contract of the office lease, if applicable

Company registration fees are as follows:

• Company name verification – 100 PHP (approx. 1,70 EUR)
• The registration of the bylaws – 1,000 PHP (approx. 17 EUR)
• The registration of stocks – 150 PHP (approx. 2,50 EUR)
• The transfer of stocks – 320 PHP (approx. 5,30 EUR)
• A filing fee of 0,2% of the authorized capital stock or the subscription price of the subscribed capital stock, whichever is higher, but not less than 1,000 PHP (approx. 17 EUR)
• A legal research fee of 1% of the filing fee but not less than 10 PHP (approx. 0,17 EUR)
• Legal research fee for the bylaws – 10 PHP (approx. 0,17 EUR)
• An approval from the Barangay – 300-1,000 PHP (approx. 5-17 EUR)

To open a company in the Philippines, you should take the following steps:

• Apply for company name approval and company registration at the Philippine Securities and Exchange Commission (SEC)
  • This step will require the submission of the Memorandum of Association, bylaws, a joint affidavit of 2 incorporators, and the company’s treasurer’s affidavit
• Pay company registration fees, the request for which is issued by the SEC after the application for incorporation
• Obtain clearance from the Barangay which is the district of your chosen region in charge of administration for the local government
  • This step will require the submission of the certificate of registration from SEC, 2 valid IDs, and proof of address of your company’s local office
• Obtain a business permit from the local Mayor’s Office
  • This step will require the provision of the certificate of registration from SEC, 2 valid IDs, Barangay clearance, and proof of address of your company’s local office
• Register your company with the Bureau of Internal Revenue (BIR) and receive a Taxpayer Identification Number (TIN) for your company, as well as register your account books and up-to-date invoices
  • This step will require the submission of the application form (BIR Form 1903), the certificate of registration from SEC, Barangay clearance, business permit from the Mayor’s Office, 2 valid IDs, and proof of address of your company’s local office
• Register as an employer with the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (HDMF or Pag-IBIG Fund)

GAMBLING LICENSE IN PAGCOR

Requirements for PAGCOR Gambling License Holders

Apart from the Franchise Tax, Philippine Offshore Gaming Operators are subject to payment of other taxes in the Philippines. The Act Taxing Philippine Offshore Gaming Operation differentiates between gaming and non-gaming revenues and hence different taxes are levied on different sources of revenues earned by a Philippines-based gambling operator.

In this regard, the non-gaming revenues of a Philippine Offshore Gaming Operator are levied an Income Tax at the rate of 25% on taxable income sourced in the Philippines and abroad. On the other hand, foreign-based Offshore Gaming Operators are subject to a 25% Income Tax levied on income sourced within the Philippines.

VAT-exempt are the sales by VAT-registered persons to the Philippine Offshore Gaming Operators. Also exempt from VAT are services rendered to the Philippine Offshore Gaming Operators which are subject to Gaming Tax by service providers.

Philippine Offshore Gaming Operators hiring foreign nationals ought to note that all foreign nationals, regardless of residence and employed and assigned in the Philippines by an Offshore Gaming Operator or its service provider, shall pay a minimum final withholding tax of PHP 12,500 (about 207 EUR) or 25 per cent on gross income, whichever is higher. Moreover, all foreign personnel of the Philippine Offshore Gaming Operators and their service providers are required to secure a TIN, regardless of their employment status. To this end, in case a Philippine Offshore Gaming Operator employs or engages for service any foreign nationals without the requisite TIN, a fine of 20,000 PHP (approx. 331 EUR) for every non-compliant foreign employee is paid.

List of Gaming System Service Providers

All casino-related marketing activities, including the following, should be consulted with the PAGCOR before their actual implementation:

• Membership or loyalty program whereby points, credits, or rewards may be earned from the playing of any game in a casino, or points, credits or rewards may be redeemed within the casino premises whether for the playing of a game
• Any game, scheme or competition, or lottery or raffle draw, or tournament in which a prize may be won directly or indirectly as a result of visiting any casino or playing any game in a casino, or a prize may be redeemable on or utilizable for the playing of any game in a casino
• Any activity, program or incentive or any combination of the same that gives publicity to, or otherwise promotes or is intended to promote the visit of a casino or the playing of any game in a casino

Here at Regulated United Europe, our team will be glad to assist you in the incorporation of a company and in further application for a gambling license from PAGCOR. Having dedicated legal advisors, tax experts, and financial accountants by your side, the process of incorporation and license application will be made easy, smooth, and crystal clear for you. Contact us today to book a personal consultation and set the scene for lasting success.

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