Philippines Senate President Calls for Review of PIGO Sector Amid Growing Concerns

Philippines Senate President Francis Escudero has called for a comprehensive review of the Philippine Inland Gaming Operators (PIGOs) sector to determine whether these locally accessible online gambling operations should continue.

As reported by Inquirer.net, Escudero voiced concerns that PIGOs have largely evaded scrutiny due to the greater controversies surrounding Philippine Offshore Gaming Operators (POGOs). While PIGOs provide similar online gambling services, their primary clientele is domestic, raising questions about their social impact. Escudero cautioned that the issues linked to POGOs could also be relevant to PIGOs, emphasizing the necessity of a closer examination of their effects on local communities.

“If PIGOs are found to be causing significant harm, particularly to financially vulnerable Filipinos, the government should consider imposing a ban similar to the one on POGOs,” Escudero stated.

He also criticized the government’s inconsistent stance on gambling, highlighting the paradox of banning POGOs, which serve foreign customers, while permitting PIGOs, which target Filipinos. Escudero stressed that it is the financial well-being of local citizens that is at risk due to the proliferation of PIGOs. Furthermore, he raised concerns that some former POGO operators might be concealing their activities under PIGO licenses, necessitating thorough investigations.

In response to these concerns, Escudero urged the Philippine Amusement and Gaming Corporation (PAGCOR) to conduct a transparent and in-depth review of PIGOs. He acknowledged the significant revenue generated by PIGOs for PAGCOR but pointed out that the agency had previously chosen to forgo earnings from POGOs due to their adverse social impact. “If PIGOs prove similarly detrimental, they should face the same fate,” he asserted.

PIGOs were introduced in 2018 as a means to regulate and expand the country's online gaming industry. These licenses allow operators to offer casino games, sports betting, and other digital gambling services to Filipino players. PIGO license holders benefit from a streamlined application process, lower regulatory fees, and tax incentives. To qualify, companies must possess at least a decade of gaming industry experience and meet financial requirements, including a minimum capitalization of PHP100 million ($1.7 million).

A distinguishing feature of PIGOs is their connection to physical gaming machines or tables at land-based casinos, rather than operating purely through server-based random number generators. This characteristic has led to the industry being referred to as “remote gambling.”

As of June 2023, PAGCOR reported that there were 44 licensed PIGO operators in the Philippines, among them Bloomberry Resorts, Travellers International Hotel Group, Tiger Resort Leisure and Entertainment, Bingo Plus, and Hann Philippines. These operators provide a range of services, including live dealer games, slot machines, and virtual gaming options tailored to the local market.

Electronic gaming revenue has been a significant contributor to the country’s gross gaming revenue (GGR), with certain eGames operating under PIGO licenses. PAGCOR disclosed that its 2024 revenue hit a record PHP112 billion ($1.92 billion), marking a nearly 41 percent increase from PHP79 billion ($1.35 billion) in 2023.

PAGCOR Chairman and CEO Alejandro H. Tengco has projected continued GGR growth of approximately 17 percent in 2025, driven by the expanding popularity of electronic gaming and the strong performance of integrated resorts. Tengco estimated that total GGR for the year could reach between PHP450 billion and PHP480 billion ($7.77 billion–$8.3 billion).

By fLEXI tEAM