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.