Despite fierce claims against gambling by President Rodrigo Duterte, the Chinese have found their gambling “paradise” in the Philippines.
Alvin Camba, a graduate student at Johns Hopkins University, specializing in the political economy of foreign capital in China, said that the boom of the service industry and economic freedom in the Philippines was the perfect condition for development. online gambling development. Gambling does not threaten the local market, even providing employment.
But what really drives the online game industry in this country is Mr. Duterte’s fight against entrepreneur PhilWeb’s PhilWeb. This is a listed company specializing in providing gaming services and operating e-Games casinos.
In 2016, Mr. Duterte announced that he would “destroy” Ongpin, who owns about US $3.26 billion of assets. That statement led to Ongpin’s resignation. He sold off 53% of his stake in the company for $38.2 million.
The move by the Philippine president also led the Philippines Entertainment and Gambling Group (Pagcor) under the government to terminate the 13-year contract with Philweb. Philweb no longer has a monopoly business, gaming licenses are sold outside of special economic zones.
Phiweb under Ongpin did not regularly deal with Chinese companies because of the previous policies of former President Benigno Aquino III. After the contract ended, Pagcor regained the right to sell licenses and open the market to foreign gambling companies, including Chinese online game companies.
How to operate gambling activities
To operate, foreign companies must cooperate with operators based in the Philippines or abroad. They will provide game companies with platform and services such as marketing and technical support. The operators then had to get a license that cost about $120,000 from Pagcor, with an extension of about 3 years.
To start operating, each game company needs to spend about $900,000, including $120,000 for game providers, $120,000 for live streaming providers, 60,000 for local partners, $120,000 for relationships. customers, plus fees paid to Pagcor.
According to Jake, the company he worked with was not monitored by Pagcor because he used another information technology company as a cover. But games like poker, roulette, sports betting are all done in other countries like Turkey and Russia.