The Philippine Amusement and Gaming Corporation (PAGCOR) recently issued a new memorandum, specifying a series of strict compliance requirements and deadlines for B2B platforms and content providers in the online gaming (eGames) sector. The notice, issued on January 29, covers game platform administrators (GSA), game content providers, distributors, and live streaming providers, demanding that relevant parties submit licensing and certification documents within the specified timeframe, or face suspension and fines. Foreign live streaming studio operators are required to establish physical studios or branches in the Philippines, a regulation aimed at strengthening supervision and eliminating illegal operations. Relevant Southeast Asian gaming B2B compliance cases can be referenced on the PASA official website.
Core Compliance Requirements: Physical Presence + Financial Security + Certification
PAGCOR's compliance requirements for B2B providers focus on "regulatability and traceability," with three key aspects:
Physical layout requirements: Foreign live streaming studio operators must have a physical studio or branch in the Philippines to eliminate "remote operation" regulatory blind spots;
Financial security requirements: Game content providers must deposit a performance bond of 1 million pesos (approximately $1.6975 million) as a commitment to compliant operations;
Full process certification requirements: Suppliers must complete B2B certification, and if related equipment is involved, they must also apply for a gaming equipment license (PTH), and distributors must also complete compliance filings.
Key Timelines: Two Critical Deadlines Not to Be Missed
PAGCOR has set a clear timetable for the compliance process, and suppliers must closely monitor two core milestones:
By February 12: GSAs and operators must submit a list of all cooperating B2B suppliers, which PAGCOR will cross-check to ensure suppliers have obtained formal certification under the new framework, and those uncertified will be issued a stop-use notice;
By March 31: All B2B suppliers must complete certification, deposit the guarantee, and establish a physical studio (if applicable) among all compliance processes, and those who fail to complete on time will be deemed unauthorized operators.
Regulatory Motives: Addressing Industry Growth Challenges and Responding to Multiple Queries
The introduction of these stringent regulatory measures is driven by both industry development and societal demands:
Industry background: In recent years, the Philippine eGames industry has experienced explosive growth, highlighting regulatory loopholes and illegal operation issues that need to be addressed with clear rules;
External demands: Some senators and anti-gambling groups have raised questions about industry compliance, and PAGCOR's actions are also in response to societal concerns, strengthening industry governance;
Long-term goals: PAGCOR Chairman and CEO Alejandro Tengco revealed that the agency is preparing a position report to submit to the central bank, calling for the restoration of direct transactions with e-wallets while ensuring strict regulation and long-term healthy development of the industry.
Consequences of Non-compliance: Suspension + Fines, No Leniency in Regulatory Enforcement
PAGCOR has made it clear that it will adopt a zero-tolerance attitude towards non-compliance:
Entities that fail to submit the supplier list as required or fail to complete compliance certification on time will be ordered to cease related operations;
Severe cases will also face additional fines and other penalties, with regulatory authorities ensuring compliance through cross-checking and dynamic supervision.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
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PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
