The 8 Gambling Laws in the Philippines You Should Know About
The gambling industry in the Philippines has a complex legal framework designed to regulate both land-based and online gaming activities. Understanding the gambling laws in the Philippines is essential for anyone involved in the industry, whether they are operators, participants, or investors. This article breaks down key aspects of Philippine gambling laws, focusing on critical regulations, enforcement, and emerging trends.
Overview of Gambling Laws in the Philippines
Several legal statutes, including the Revised Penal Code and various RAs, as well as issued casino regulatory manuals, primarily govern gaming laws in the Philippines. The Philippine Amusement and Gaming Corporation (PAGCOR) is the government agency responsible for regulating and licensing gambling operations in the country.
The gaming corporation oversees the gaming industry and ensures compliance with the law, particularly in integrated resorts operating within designated zones like the Entertainment City Complex.
The Aurora Pacific Economic Zone and Freeport Authority (APECO) and the Cagayan Economic Zone Authority (CEZA) have also been established to promote economic activities, including gambling, in their respective regions. Such economic zones are intended to attract foreign investment by offering incentives and a regulatory framework more conducive to gaming operations, including those of offshore casino operators.
Regulation of Land-Based Casinos
Land-based casino operations, including those in integrated resorts and other offline casinos, are subject to strict oversight by the Philippine Amusement and Gaming Corporation. Casinos located in designated areas must adhere to specific guidelines outlined in the issued Casino Regulatory Manual by the responsible government agency. These guidelines cover various aspects of casino operations, including managing gaming equipment and any mechanical invention and ensuring the integrity of casino transactions.
Furthermore, casino operators must comply with the AMLA, which mandates stringent reporting requirements to prevent money laundering activities. For instance, each casino transaction involving over five million pesos or its equivalent in other currencies must be reported. The same should apply if wagers are in the form of money articles of value or another representative of value.
What gambling is legal in the Philippines?
Online Gambling and Internet-Based Casinos
The rise of online gambling has necessitated the development of new regulations, including internet gaming licensees. These regulations apply to amusement games on online platforms, ensuring that they operate within the bounds of the law.
The POGOs are a prime example of such game scheme entities. POGOs are subject to the rules set forth by the Philippine Amusement and Gaming Corporation and must meet specific requirements, including the payment of taxes on gross gaming revenue.
The online landscape, including online cockfighting, has gained popularity in recent years. The Philippine Amusement and Gaming Corporation has implemented guidelines for internet gaming licensees and gaming content providers to regulate this growing sector. These regulations are designed to maintain the integrity of online games, amusement games, and other game options while protecting players from illegal activities.
Horse Racing and Other Legal Forms of Gambling
Horse racing is another legal form of gambling in the Philippines, regulated by the Philippine Racing Commission. This sector has its own set of rules and guidelines, separate from those governing casinos, online cockfighting, and online betting. Such games must comply with specific regulations regarding wagers consisting of money and other articles of value.
In addition to horse racing, the Philippine Charity Sweepstakes Office (PCSO) oversees lotteries and other games of chance. These activities are regulated to ensure fairness and to prevent illegal betting activities. The PCSO is also responsible for generating revenue for charitable causes through its gambling operations.
Philippine Gambling Laws To Know
Some existing laws govern brick-and-mortar casino operations, online gambling, and other forms of betting in the country.
1. Presidential Decree No. 1602 (Anti-Illegal Gambling Law)
The Philippines has a robust framework for combating illegal gaming operations. Entities hosting illegal gaming activities face severe penalties under various anti-illegal gambling laws. The Anti-Money Laundering Council (AMLC) works closely with PAGCOR to identify and prosecute individuals and organizations involved in money laundering through game schemes not authorized by the gaming corporation.
Enforcement of Philippine gambling laws is carried out by the Philippine Gaming Corporation, which serves as the government agency duly empowered to regulate and monitor all forms of gambling in the country. This includes ensuring that all gaming operators are licensed and adhere to the regulations in their manuals. Failure to comply with these regulations can result in fines, license revocation, or criminal charges under the Revised Penal Code.
What is the RA 1602 in the Philippines?
This law imposes penalties on illegal betting activities in the Philippines. It includes provisions that define illegal gambling and specify the penalties for those caught participating in or organizing such activities. Depending on the severity and the involvement, penalties range from fines to imprisonment.
2. Republic Act No. 9287 (An Act Increasing the Penalties for Illegal Numbers Games)
This act amends Presidential Decree No. 1602. It imposes harsher penalties on operators, collectors, and even bettors.
What gambling is prohibited under RA 9287?
RA 9287 prohibits illegal numbers games such as Jueteng, Masiao, Last Two, and other unauthorized betting games. These activities are specifically targeted to be widespread and linked to social issues like corruption.
Penalties include fines and imprisonment, with increased severity based on the level of involvement in the illegal numbers game.
3. Republic Act No. 9487 (PAGCOR Charter)
This act provides the legal framework for the Philippine Amusement and Gaming Corporation, granting it the authority to operate, license, and regulate games of chance, such as casinos and other gambling establishments in the country. They are also responsible for handing out internet gaming licenses.
The said government agency regulates land-based casinos, gaming clubs, and e-games, ensuring operations comply with the law. They also license gaming entities whose gaming equipment will be used in the country. They also cover service providers providing components of the online gaming process and persons primarily engaged in the operations.
4. Republic Act No. 7922 (Cagayan Special Economic Zone Act)
This law establishes the Cagayan Special Economic Zone and Freeport, where the Cagayan Economic Zone Authority (CEZA) regulates online gambling operations. This zone allows for the operation of online gambling and gaming-related activities that cater primarily to foreign players. This also means they ensure the activities will be limited within such economic zone.
CEZA licenses online gambling operators and enforces regulations within the Cagayan Economic Zone.
5. Republic Act No. 8371 (Indigenous Peoples’ Rights Act)
This law mandates that the rights of indigenous peoples be respected, including when establishing gambling operations in ancestral domains. Operators must secure the free and prior informed consent of indigenous communities before establishing gambling operations within their territories.
6. Republic Act No. 10927 (Anti-Money Laundering Act as Amended)
This act includes casinos in the list of covered institutions under the Anti-Money Laundering Act (AMLA). Casinos are required to report transactions that exceed a certain threshold and ensure they comply with anti-money laundering regulations.
Casinos must implement anti-money laundering measures, including customer due diligence, record-keeping, and reporting of suspicious transactions.
7. Executive Order No. 13 (Strengthening the Fight Against Illegal Gambling)
Issued in 2017, this executive order aims to intensify the government’s efforts against illegal gambling. It orders government agencies to coordinate their efforts to crack down on illegal activities nationwide.
The order mandates that PAGCOR, CEZA, and other relevant agencies work together to combat illegal gambling operations effectively.
8. Republic Act No. 11709 (Philippine Offshore Gaming Operators Law)
This law governs the operations of POGOs, which cater primarily to foreign players. It sets forth the licensing requirements, operational guidelines, and tax obligations for POGOs. POGOs are subject to specific taxes and must comply with regulations regarding their operations, including the hiring of foreign employees.
As of writing, the Philippine government has suspended all POGO operations in the country.
What is the Republic Act of Illegal Gambling in the Philippines?
The act that specifically addresses illegal gambling in the Philippines is RA No. 9287. This law was enacted to amend Presidential Decree No. 1602, which originally laid out penalties for gambling activities.
It targets anyone involved in illegal gambling, including operators, financiers, collectors, and even bettors. The act prescribes heavier penalties, which include imprisonment and fines. The severity of the penalty depends on the individual’s level of involvement in the illegal gambling operation.
The Role of Gaming Operators and Service Providers
Operators, both offline and online, must obtain licenses from PAGCOR. These operators must comply with the regulations governing betting operations and are responsible for ensuring that their activities do not contribute to illegal gambling. Gaming operators based abroad must also adhere to Philippine laws if they operate within the country’s jurisdiction.
Service providers, including those involved in business process outsourcing facilities, are also subject to regulation. These providers may include companies that offer gaming content, computer servers, or other technical support for gambling operations. They must ensure that their gaming content providers and their services comply with Philippine laws set forth by the local government agency and not facilitate illegal gambling activities.
Internet Gaming Regulations and Anti-Money Laundering Measures
The Philippine government has implemented internet gaming regulations and gambling laws to control the growing online gambling sector. These regulations ensure that internet gaming licensees operate legally and transparently. Compliance with the AMLA is also crucial for online gambling operators, as they are required to report suspicious transactions and prevent using their platforms for money laundering.
The AMLA outlines the responsibilities of gambling operators in preventing financial crimes. This includes monitoring transactions, maintaining records, and reporting any suspicious activity to the authorities. Non-compliance with these regulations can lead to severe penalties, including fines and imprisonment.
Conclusion
Understanding the laws in the Philippines is crucial for anyone involved in the gambling industry. From offline casinos to online gambling, the regulatory framework ensures fair play, prevents illegal betting activities, and protects operators and players. Compliance with these laws, including the Anti-Money Laundering Act and Internet gaming licensing regulations, is essential for the continued growth and integrity of the Philippine gambling industry.
Whether you are a gaming operator, a player, or an investor, staying informed about the latest developments in Philippine gambling laws is essential. By adhering to the regulations set forth by PAGCOR and other government agencies, you can contribute to a safe, fair, and transparent gambling environment in the Philippines.
Hristo (Christo to his friends) is a seasoned iGaming professional with 18 years experience building iGaming & Fintech products – Casino, Sportbook, Poker, Bingo, Social gaming and Fintech products gathered throughout his career in PokerStars, Winner.com, Playtech, Reflex Gaming. Strong knowledge and expertise in Marketing, Operations, Strategy building and business relationship management.
