What is IGL (Philippine Internet Gaming License)?

 

Origin and Background of the IGL License

The IGL (Internet Gaming License) was introduced by the Philippines to address issues within the POGO (Philippine Offshore Gaming Operators) sector. This initiative aims to enhance industry transparency, regulate operations, and eliminate the negative impacts and illegal activities associated with POGO.

Timeline and Key Events

1. Initial Announcement (July 2023)：PAGCOR (Philippine Amusement and Gaming Corporation) first announced the rebranding of the POGO license to IGL. The goal of this change is to increase transparency and compliance through a new name and a stricter regulatory framework.
2. Policy Changes and Implementation (August 2023)：PAGCOR began re-evaluating all existing POGO license holders, requiring them to reapply for licenses under the new internet gaming regulations. The new rules introduce higher capital requirements and stricter vetting processes to ensure the legality and compliance of operators.
3. First License Issuance (May 2024)：As of May 2024, PAGCOR has issued official IGL licenses to 40 offshore gaming operators, with an additional 9 operators holding temporary licenses. 
   
   

Conditions and Requirements for IGL Licenses

New Regulations

1. Capital Requirements：The new Internet gambling licensing regulations require licensed operators to have an authorized capital of at least P100 million, of which P25 million must be paid-in capital. This requirement is much higher than the previously authorized capital of P15 million and paid-in capital of P3 million  (Philstar)​。
2. License Validity：The new IGL license is valid for two years and only applies to specific locations. If the operator operates at another address, the license will be invalid (Philstar)​。
3. Transparency Measures：PAGCOR has pledged to make public the list of all legal operators and the links to the websites they operate through its official website and various media channels. This measure is intended to crack down on illegal operators and ensure that the public can clearly identify legal gambling platforms (Asian Gaming Magazine)​​ (Philstar)​。
   
   

Re-application and review
All existing POGOoperators must re-apply forIGLlicenses.PAGCORconducts a rigorous review of applicants to ensure that they meet the new regulatory standards (Asian Gaming Magazine) (BusinessMirror) . This process is intended to filter out non-compliant operators and improve the overall quality of operations.

License quantity limit
PAGCORplans to issue55to65ofIGLlicenses. This limit is intended to ensure that the regulator can effectively manage each licensed operator  (Manila Shaker) :

Application conditions
Companies applying for an IGL license must meet several conditions, including:

1. Providing detailed company information and operational plans.
2. Ensuring that shareholders and management have no criminal record.
3. Submitting financial reports and proof of sufficient capital.
4. Establishing robust anti-money laundering and counter-terrorism financing measures.

Operational Requirements
Licensed IGL operators must adhere to the following requirements:

1. Regularly submit operational reports to PAGCOR and undergo audits.
2. Ensure that all employees have valid work visas.
3. Establish a compliance department to ensure adherence to legal regulations.
4. Implement responsible gambling measures to protect players.
   
   

IGL Regulation and Enforcement

Regulatory Mechanisms
PAGCOR has established a comprehensive regulatory mechanism that includes：

• Regular Audits and Onsite Inspections：Ensuring operators remain compliant.
• Reporting Channels：Providing avenues for the public to report complaints and issues.
• Technical Monitoring：Utilizing technology to monitor the operations of online gaming platforms.

Penalties
For IGL operators found in violation of regulations, PAGCOR will impose the following penalties:

• Fines：For minor violations, operators will be fined accordingly.
• Suspension or Revocation：For serious violations, IGL licenses may be suspended or revoked, prohibiting the operator from continuing its operations.
• Criminal Prosecution：In cases of criminal activity, PAGCOR will refer the matter to law enforcement for prosecution. 
  
  

Key Differences Between GCP, PIGO, IGL, and POGO Licenses:

Target Audience:

• GCP: Onshore land-based gaming customers within the Philippines.
• PIGO: Online gaming customers within the local Philippine market.
• IGL: Offshore online gaming customers, primarily targeting overseas markets.
• POGO: Offshore online gaming customers, primarily targeting markets such as mainland China and other foreign regions.

Operating Model:

• GCP: Land-based operations.
• PIGO: A combination of land-based and remote operations.
• IGL: Offshore online operations.
• POGO: Offshore online operations.

Regulation and Compliance:

• GCP: Onsite inspections and financial audits.
• PIGO: Onsite and technical inspections, including Know Your Customer (KYC) checks.
• IGL: Technical monitoring and data transparency.
• POGO: Technical monitoring and data transparency.

 

Future Outlook for IGL

Industry standardization and transparency
With the introduction of IGL licenses and the implementation of a new regulatory framework, the offshore gambling industry in the Philippines is expected to achieve more standardized and transparent operations. This will help reduce illegal activities and enhance the country's international reputation.

Economic and social impact
Under the new regulatory framework, legitimate IGL operators will be able to operate in a fair and transparent environment, contributing to stable tax revenues and job creation in the Philippines. PAGCOR will continue to fund social welfare projects and promote tourism, making a positive contribution to the country's economic and social development.

 

IGL License Ban and Debate

As of now, there are multiple discussions about the ban on IGLs:
Senate Discussion: Senate Bill 1281, pushed by Senator Joel Villanueva, proposes a total ban on all forms of iGaming, including IGLs. Villanueva pointed out that POGO and IGL operators are involved in criminal activities such as human trafficking, fraud, and kidnapping, and therefore should be completely banned  (Asian Gaming Magazine)​。

PAGCOR's Position: PAGCOR Chairman Alejandro Tengco said that a total ban on IGLs could cause legal operators to go underground, making supervision and enforcement more difficult. He believes that the disappearance of legal operators will lead to more rampant illegal activities and cost the government about 20 billion pesos in tax revenue each year (GMA Network | News and Entertainment )​​ (Philstar.com)​。

 

Further Information and News Sources

1. Philstar：Provides detailed coverage of the introduction of IGL and its strict regulatory measures.
2. GMA News：Confirms PAGCOR’s re-evaluation of POGO licenses starting in 2023 and the issuance of new IGL licenses in early 2024.
3. Daily Tribune：Highlights PAGCOR Chairman Alejandro Tengco's public statements regarding IGL regulation and potential issues.