IGL - Internet Gaming Licensees

What is IGL ?

Origin and Background of IGL License

The IGL (Internet Gaming Licensees) license in the Philippines was introduced to address the issues within the POGO (Philippine Offshore Gaming Operators) industry. This measure aims to improve industry transparency, standardize operations, and eliminate the negative impacts and illegal activities associated with POGO.

Timeline and Key Events

Initial Announcement :
In July 2023, the Philippine Amusement and Gaming Corporation (PAGCOR) first announced that POGO licenses would be rebranded as IGL. The purpose of this change was to improve industry transparency and compliance through a new name and a more stringent regulatory framework.
Policy Changes and Implementation :
In August 2023, PAGCOR began reviewing all existing POGO license holders, requiring them to reapply for licenses under the new Internet Gaming License regulations. The new regulations introduced higher capital requirements and more rigorous screening procedures to ensure the legitimacy and compliance of operators.
First Licenses Issued :
As of May 2024, PAGCOR has issued formal IGL licenses to 40 offshore gaming operators, with an additional 9 in the temporary license stage.

See more: The Impact of Losing Pogo’s License on Online Casinos

Issuance and Requirements of IGL Licenses

New Regulations

Capital Requirement :
The new Internet Gaming License regulations require licensed operators to have a minimum authorized capital of 100 million Philippine pesos, with at least 25 million pesos in paid-up capital. This is significantly higher than the previous requirement of 15 million pesos in authorized capital and 3 million pesos in paid-up capital.
License Validity :
The new IGL licenses are valid for two years and are specific to a particular location. If an operator conducts business at a different address, the license will become invalid.
Transparency Measures :
PAGCOR has pledged to publicly disclose the list of all legally operating licensees and the websites they operate through its official website and various media channels. This measure aims to combat illegal operators and ensure the public can clearly identify legitimate gaming platforms.

Reapplication and Review

All existing POGO operators must reapply for the IGL license. PAGCOR conducts a thorough review of the applicants to ensure they meet the new regulatory standards. This process aims to filter out non-compliant operators and raise the overall quality of operations.

License Quantity Limit

PAGCOR plans to issue 55 to 65 IGL licenses. This limit is intended to ensure the regulator can effectively manage each licensed operator.

Application Requirements

Providing detailed company information and operational plans

Ensuring shareholders and management have no criminal records

Submitting financial reports and proof of financial capacity

Establishing robust anti-money laundering and counter-terrorism financing measures

Operational Requirements

Submitting regular operational reports to PAGCOR and undergoing audits

Ensuring all employees hold legal work visas

Establishing a compliance department to ensure operations adhere to laws and regulations

Implementing responsible gaming measures to protect player interests

Regulation and Enforcement of IGL

Regulatory Mechanisms

Regular audits and on-site inspections to ensure operator compliance
Complaint and reporting channels for the public
Technical monitoring of online gaming platforms

Penalty Measures

For IGL-licensed operators that violate the regulations, PAGCOR will implement the following penalty measures:

Fines for minor infractions
Suspension or revocation of licenses for serious violations, prohibiting further operations
Criminal prosecution for suspected criminal activities, holding relevant individuals accountable

IGL’s Future Prospects

Industry standardization and transparency

With the introduction of the IGL license and the implementation of the new regulatory framework, the Philippine offshore gambling industry is expected to achieve more standardized and transparent operations. This will help reduce illegal activities to enhance the Philippines’ international reputation.

Economic and Social Impact

Under the new regulatory framework, legal IGL operators will be able to conduct business in a fair and transparent environment, bringing stable tax revenue and employment opportunities to the Philippines. same During this period, PAGCOR will continue to fund social livelihood projects and promote tourism development, making positive contributions to the economic and social development of the Philippines.

Conclusion

The introduction of the IGL license is a significant step taken by the Philippine government to address the issues that plagued the previous POGO system. By implementing more stringent regulations and oversight, PAGCOR aims to attract reputable operators, protect consumers, and elevate the overall standards of the online gaming industry in the Philippines.