Who will benefit from China’s online gambling boom in the Philippines? (Part 3)

Technically, the company is like an IT company, not even a support center, but actually a part of the gambling ecosystem. Currently, there are more than 56 online gambling development companies approved by Pagcor, but there may be many unregistered companies to evade taxes.

The booming industry has led to suspicious labor sources from China and immigration law issues in the Philippines. Many workers enter the Philippines as tourists.

In 2018, more than 1.2 million Chinese tourists came to the Philippines, just behind 1.6 million to South Korea. For many tourists, their “attraction” is the online gambling industry.

Pagcor terrible profit

The Philippine Ministry of Finance estimates the government lost 32 billion pesos ($ 629 million) in income taxes from about 140,000 foreign workers in the online gambling industry. To solve the problem, the Internal Revenue Service issued a regulation requiring foreign workers to have a tax code before working in this country.

Foreign workers are also registered with the competent district tax office (RDO) for the employer’s real address. Other foreign workers who already have a work visa or work permit issued by the Immigration Department (BI) are also required to register with the RDO.

The inter-agency task force, comprising DOF, BI, Pagor, Ministry of Labor and Employment, National Bureau of Investigation, and Ministry of Justice, monitors online game companies. Illegal Chinese workers were also arrested, but Jake said the case could be denounced by a competing company.

Pagcor has yet to disclose the income of online gambling businesses and the size of the industry. However, Pagcor’s unusual rise in income suggests that the online gambling industry helps the agency make a profit.

In the first 4 months of 2019, Pagcor Cotton posted a growth of 11.4% with a total revenue of 25.09 billion pesos ($ 492.6 million). This figure exceeded 2.57 billion pesos (US $50 million) compared to the same period last year.

Continue Reading

Who will benefit from China’s online gambling boom in the Philippines? (Part 2)

Perfect location

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.

Continue Reading

Who will benefit from China’s online gambling boom in the Philippines? (Part 1)

The booming Chinese-invested online casino industry in the Philippines is what keeps many people from the East nation. South Asia cannot understand it.

According to Rappler, with a degree in business administration from a leading Filipino university, Jake expects to get a job with the forte. He was recruited by an information technology (IT) company in Quezon and worked as a financial analyst. But the actual job is not what the company promises him.

Jake was tasked with inserting a USB or memory card into the computer and entering the code. “At first, I didn’t know what I was doing. But it turned out that I was paying the winners of online gambling games,” Jake said. He was completely unaware of the cash flow, or whether they came from Philippine financial institutions.

In addition to entering the code, Jake was tasked with finding Chinese players. He communicates directly with the player or through other affiliates. Players are mainly from China, but there are also Chinese customers from Taiwan, Hong Kong, Singapore and the US.

The company operates shady

Jake said the company he works with has about 200 employees, including Chinese and Filipinos. “You don’t need to speak Mandarin. You can use English, or Chinese, Filipinos fluent in Mandarin will translate for you,” Jake said.

According to Jake, the industry provides Filipinos with attractive job opportunities and income. Besides salaries, employees are awarded at least nearly $10,000 per year. Some Chinese managers earn more than $20,000, not counting bonuses.

On average, Chinese employees make between US $1,156 and US $1,348 per month. Filipino employees earn less but are still much higher than regular jobs.

In an interview with Rappler, Wei – a Chinese employee at another company – said he was promised by the employer to pay $2,000, but actually received only half.

Jake said the company’s website has some backups in case of being blocked by Chinese firewalls. Jake left the company after a few months because he was uncomfortable with the suspicious activity here.

Continue Reading