Gambling license in the Philippines

The Cagayan Economic Zone Authority (CEZA) remains a key regulator for those looking to operate gambling activities in the Philippines, particularly appealing due to PAGCOR’s current moratorium on new licenses effective March 1, 2024. CEZA offers a pathway for international and local companies through a regulated, transparent licensing process that encourages investment and ensures compliance with global standards.

Advantages of a CEZA Gambling License

• Strategic Location: The Philippines strategically targets the Asia-Pacific gaming market.
• Tax Benefits: CEZA offers attractive tax benefits, reducing operational costs for licensed companies.
• Robust Legal Support: The Philippines provides a strong legal framework that supports fair and secure gaming operations.
• Enhanced Reputation: A CEZA license elevates a company’s status internationally, endorsing its credibility.

Key Requirements for Obtaining a CEZA License

• Company Status: Applicants must be businesses duly registered in the country where they are based or locally registered in the Philippines.
• Permissible Gaming Activities: Only those gaming activities authorized under the Amended CEZA Interactive Gaming Rules and Regulations (IGRR) of 2023 are allowed, and activities listed as prohibited are strictly forbidden.
• Service Agreement with IGSSP: Offshore companies must enter into a formal service agreement with an Interactive Gaming Support Service Provider (IGSSP) to engage its services.
• Local Company Options: Local companies can engage an IGSSP but must register as a CEZA Enterprise. If a local company wishes to operate independently and provide support services to other IGL holders, it must register as an IGSSP.
• Endorsement by Master Licensor: All applicants must be endorsed by the Master Licensor before being considered by CEZA.

Stages  for obtaining a gambling license in the Philippines

1. Initiation: Start by submitting a Letter of Intent to CEZA’s CEO.
2. Discussion: Present and refine your business plan during a meeting with the Administrator.
3. Referral: Gain initial approval and a referral to the Master Licensor.
4. Verification: Undergo probity checks and assessments by the Master Licensor.
5. Review: Receive an endorsement from CEZA if evaluations are positive.
6. Documentation: Submit all required documents for review and complete any necessary adjustments promptly.
7. Approval: Await the final decision after a thorough review by CEZA’s Deputy Administrator.
8. Issuance: Once approved, finalize the process by paying the licensing fee and receiving your license.

Time Frames

Typically, a CEZA license can be secured within 2-3 months, contingent on the prompt and accurate preparation of required documents. Efficient organization and readiness can streamline this period considerably.

What Types of Gambling Activities Require Authorization?

A Philippine corporation owned and controlled by the government, PAGCOR, issues licenses for land-based casinos through its Gaming Licensing and Development Department (GLDD). Its Electronic Gaming Licensing Department (EGLD) regulates and licenses online gaming activities, including eCasino, sports betting, online poker, etc. Thus, the following activities require a gambling license in the Philippines:

• land-based casino games;
• electronic casino games;
• traditional bingo;
• eBingo;
• sports betting;
• online poker;
• numeric games;
• specialty games.

Separate licenses are granted for each game offering. PAGCOR is the main national regulator. It is worth noting that special economic zone authorities have their own powers under local laws to license gambling activities.

What Requirements Must Operators Meet Before Applying?

The exact requirements depend on the type of gaming activity and the license category. In the Philippines, a gambling license application requires an applicant to register a Philippine company and ensure providing only those gambling services that are allowed. The entity must demonstrate its financial capacity, integrity, and suitability; approved hosting infrastructure; technical certification; and ownership transparency.

What Documents Are Needed for the License Application?

When applying for a license, a suite of documents must be prepared. This compliance package varies depending on the license category. As a high-level list of documents needed for the application, we’d mention the following:

• statutory and operational documents;
• corporate structure and beneficial ownership information;
• a business plan and company profile;
• an AML/CFT compliance programme;
• technical documents;
• verified personal information and disclosure documents for shareholders, directors, and key officers.

To get precise information, you can contact SBSB fintech lawyers.

How Does the Application Process Work in the Philippines?

The application process is well-arranged and comprehensive in the Philippines. First, businesses submit an application to PAGCOR with attached documentation and financial information.

PAGCOR checks the information to evaluate trustworthiness. If needed, the regulator may perform on-site inspections and financial audits. Once everything is approved, it issues the online gambling license in the Philippines. Approval can take up to 6 months, but times vary.

Conclusion

Securing a gambling license under CEZA offers businesses significant strategic benefits, including operational cost reductions and access to a broad international market. The detailed application process, while stringent, ensures that only compliant and capable operators are allowed to participate in this lucrative industry.

If you need a gambling license in the Philippines, contact SBSB Fintech Lawyers. We have been specializing in FinTech and Crypto and Gambling projects since 2013, providing tailor-made solutions for each client, taking into account the company’s business model. We will help you choose the most appropriate type of license and prepare the necessary documents to legalize your gambling business and obtain a gambling license in the Philippines in accordance with the law, providing full legal support.