Among Southeast Asian countries, the Philippines has long been a popular licensing hub for the gaming industry. With increasingly mature regulations, a relatively open policy environment, and — most importantly — a clear and transparent tax structure, it’s an ideal destination for operators looking to run a legitimate business.

This guide will help you quickly understand:

• What are the current legal gaming models in the Philippines? 
• How is tax collected? Who collects it? 
• Is the POGO model still valid? 
• Under different operating models, how much tax will you really pay? 
• What are the latest licensing requirements? 

🔍 Three Main Regulatory Bodies

Operating a gaming platform in the Philippines typically involves these three official entities:

• PAGCOR (Philippine Amusement and Gaming Corporation): Oversees all land-based and online gaming operations. 
• BIR (Bureau of Internal Revenue): Collects franchise tax and income tax. 
• Local Government Units (LGUs): May impose additional administrative or licensing fees. 

📋 Three Main License Types & Tax Structures

🖥 PIGO (Philippine Inland Gaming Operator)

Designed for local land-based casinos offering online versions (e.g., eGames, online sports betting).

• Target Audience: Players within the Philippines 
• PAGCOR Revenue Share: 47.5% of GGR 
• BIR Franchise Tax: 5% of revenue 
• Local taxes can push the total tax rate to 52.5% or higher
  ✅ Legal and secure, but applicable only to entities with existing land-based casino operations 

🎰 eGames (Domestic Online Gaming Café Model)

Refers to online gaming café platforms operating within the Philippines, often used in white-label partnerships.

• Gradual tax reduction over the years: 
  • 2022: ~55% 
  • 2024: adjusted to 35% 
  • 2025 onward: 30% (based on GGR) 
• If operating as an online version of an integrated resort, tax may be reduced to 25%
  ✅ Strong official support. PAGCOR encourages grey-market operators to transition into compliant eGames operations 

❌ POGO (Philippine Offshore Gaming Operator)

Initially designed to serve players in China and overseas markets.

• Officially abolished in July 2024 (Presidential Executive Order No. 74) 
• Rebranded briefly as IGL, but the ban remained in force 
• Reasons: Scandals involving scams, money laundering, and national security concerns, under heavy international pressure 

📝 Latest Licensing Requirements

📌 B2C License Application (PIGO License)

• Cost: ₱350 million–₱500 million (formerly ₱200 million) 
• Process: Form submission, background checks, and interviews (must be fluent in English and have a professional image) 
• Important: Applicants with POGO history are highly likely to be rejected 
• Current Status: New applications are closed; only available via acquisition 

📌 API License Application

• Cost: ₱20 million 
• How to Apply: Register via PAGCOR’s website, submit required documents (business registration, RTP certification, game files) 
• Requirements: Must set up a physical office in the Philippines 
• Usage Restrictions: Can only connect to licensed B2B or B2C platforms; linking to grey-market platforms results in heavy penalties
  ⚠️ Policy changes may occur after the election — stay tuned 

📊 eGames Tax Rates by Game Type

• Slots, Fishing, Live Casino: 33.5% 
• Sports Betting: 23.5% 
• Traditional Filipino games, local mini-games: 15% 

💼 Other Taxes & Costs

In addition to PAGCOR and BIR’s gaming taxes, operators may also encounter:

• Corporate Income Tax: 25% if annual income exceeds ₱5 million (under the CREATE Act) 
• Value-Added Tax (VAT): 12% on certain services and purchases 
• Withholding Tax: For foreign staff salaries or international service fees 
• Local Licensing & Operating Fees: Varies by LGU 

📈 Tax Impact & Market Trends

• In Q3 2024, the Philippine online gaming sector generated ₱28 billion in taxes (~USD $490 million) 
• eGames revenue exceeded ₱100 billion (~USD $1.7 billion) 
• After tax reforms, licensed operators grew by 14% 
• For the first time, online gaming surpassed land-based casinos as PAGCOR’s top revenue source
  ✅ Though taxes are high, they reflect a market with real potential, legal clarity, advertising access, and smooth payment channels 

⚠️ How Risky Is It to Operate Without a License?

💥 Risk of geo-blocking or DNS blacklisting
💥 No recourse for user withdrawal disputes
💥 Difficulty partnering with payment providers
💥 Fines and jail time of up to 12 years

📌 In short, “license + tax record” = sustainability + brand credibility

✅ What Can Kzing Do for You?

As your all-in-one white-label provider, we offer more than just a platform — we help you navigate compliance:

• Assist clients in connecting with licensed API providers and payment channels 
• Introduce licensed consultants to help with formal applications (if needed) 
• Avoid the POGO trap and expand legally with our integrated white-label system 
• Provide licensed APIs, compliant game content, and global solutions with multi-currency support 

Stop asking “Is there a cheaper license?” — start asking “Is there a long-term solution?”

The Philippine gaming policy is now on the right track and only getting stricter.

✅ A licensed, compliant, and tax-transparent platform is your only passport to staying in the game and building long-term profit.

📞 Want to know more about compliant solutions in the Philippines, tax optimization, or licensed API integration? Contact Kzing — we’ll help you build a business that’s both profitable and sustainable.

Derek (小波) derek.cheong@kzing.com +63 928 699 8616 TG: @KzingSales03

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