Aguirre: Online operators “have nothing to fear”
In a characteristic turnabout last month, Philippine President Rodrigo Duterte declared he is “ordering the closure of all online gaming. All of it. It has no use.”
During his 2017 budget statement, the president said the country’s economy does not benefit from online gaming outlets, so the industry should be eliminated. He gave no further details on his plan.
According to the Inquirer newspaper, Justice Secretary Vitaliano Aguirre II has been ordered to investigate online gaming firms and any plan to shut down the industry would be based on that investigation. But Aguirre added that Duterte was only talking about illegal online gaming operators like Macau businessman Jack Lam, and online operators who comply with the regulations “have nothing to fear.”
In another seeming contradiction of the president’s blanket statement, Andrea Domingo, head of the Philippine Amusement and Gaming Corp., said the order will have no effect on holders of Philippines Offshore Gaming Operator licenses. Almost three dozen POGO licenses were issued in December.
The Philippine Star reported that PAGCOR would allow offshore gaming to stem the proliferation of illegal e-Gaming and to help offset revenues lost when the government shut down the e-Games network PhilWeb Corp., which ran more than 280 internet cafes in the country.
PAGCOR said licensed offshore gaming would “safeguard the welfare of the Filipinos and time meet the agency’s revenue targets to help fund the government’s nation-building programs.”
PAGCOR charged application and processing fees of $50,000 for e-Casinos and $40,000 for sports betting licenses, and an additional $200,000 and $150,000 on approval of the licenses.
According to CalvinAyre.com, Domingo said the government will continue its work to stamp out unauthorized online gaming as it builds a legal industry. In a letter dated December 12, she informed PhilWeb Chairman Gregorio Araneta III that the selection of new licensees would be done “through public bidding,” so the established operator may not have a leg up on the competition.
Domingo has said that an executive order will be forthcoming to clarify the president’s position on the matter. Meanwhile, the Nikkei Asian Review reported last week that online gaming companies in the country have taken a dive in the stock market since Duterte’s remarks, “with some fearing a crackdown similar to the country’s deadly campaign against drugs.”
On the day of the president’s remarks, PhilWeb was down 30.3 percent at 8.30 pesos.
Duterte’s latest about-face may be related to the November gambling raid at Lam’s Fontana Leisure Parks and Casino near Manila, where more than 1,300 illegal Chinese workers were detained. Lam fled the country and has kept out of sight ever since.
Even so, the Star has reported that Lam can return to the country and even resume his business if he settles his unpaid tax revenues from the online business at the Fontana; applies for a gaming license; and issues a statement saying he won’t attempt to bribe government officials in the future.
In December, Duterte ordered the arrest of Lam, founder of the Macau-based junket operator Jimei International Entertainment Group. He reportedly attempted to bribe Aguirre, Duterte and other high-ranking officials, including several in the Bureau of Immigration.
Though the president seems to have softened his position on Lam, if the businessman fails to meet the conditions, his properties in Fontana and Fort Llocandia will be seized by the government.
