In July, when Xiao Ma just launched the POGO ban, there was a fierce discussion for a while about whether the applicable targets included IGL.
At that time, the chairman of PAGCOR also privately approached Xiao Ma to discuss, striving for the authorities to exempt 12 Philippine offshore gaming operators or online gaming companies, saying that Xiao Ma had agreed to his idea.
However, later we all knew that the Philippine Senate confirmed: IGL is the same as POGO, both are to be banned.
Latter on, some legislators suggested that to compensate for the lost economic benefits, it could open up E-sabong (cockfighting gambling), and the chairman of PCSO also wanted to launch another lottery game called Lotto Bilyonaryo, hoping to set up lotteries in some companies with chain businesses. However, these were also denied.
In addition to the Internet Gaming License (IGL), there were also discussions about GCP and SCBPO later on.
GCP: is a game provider license. SCBPO is a customer service license, 90% of which are Filipino, serving BC companies in Europe and America.
By the end of July, there were 5 permanent licenses and 2 temporary licenses for GCP (Game Content Provider) in the Philippines, totaling 7. SPBPO (Service Support Provider) had 10 permanent licenses and 2 temporary licenses, totaling 12.
In September, Philippine Senator Mark Villar assured that companies under Special Business Process Outsourcing (SCBPO) would not be affected by President Ferdinand R. Marcos Jr.'s order to close Philippine offshore gaming operators (POGO) by the end of the year.
"SCBPO employees can rest easy; they will not be included in the scope of the president's mandatory closure. "We are committed to executing this order without harming the local workforce."
Chairman Tengco of PAGCOR pointed out that SCBPO employs more than 4,900 Filipinos and 137 foreigners, complying with the requirement that 95% of the workforce be Filipino.
Unlike online gaming companies, SCBPO provides services to foreign gaming entities but does not engage in gaming activities itself.
In other words, because it employs a large number of Filipino workers and does not directly engage in gaming interactions, it can be exempt from the POGO ban.
However, at that time, Xiao Ma and the relevant government departments had not yet clearly expressed that SCBPO would be excluded from the ban, so everyone was still quite panicked.
In an earlier article, we also mentioned that it is possible to stay in the Philippines by changing the nature of business registration, claiming to provide non-gambling related services (such as technical support, software development, BPO).
As long as the gambling department is dissolved and re-registered as an "IT service company", but still privately provides gambling services to offshore customers, it might be possible to "deceive the heavens and cross the sea."
Now, five months later, when checking the SCBPO companies in the Philippines again, more than 100 have obtained licenses.
So, what are the conditions for registering an SCBPO company?
Special Class Business Process Outsourcing (SCBPO)
Business scope: The company must provide support services to overseas legal gaming entities and must not engage in any form of gaming activities directly.
Workforce composition: At least 95% of the employees must be Filipino citizens to promote local employment.
Compliance requirements: The company must comply with the regulations of the Philippine Amusement and Gaming Corporation (PAGCOR) and other relevant regulatory bodies, including but not limited to data privacy, labor laws, and tax regulations.
License application: Enterprises need to apply to PAGCOR for an SCBPO operating license, submitting detailed business plans, financial conditions, and compliance proofs, etc.
Note, applying for an SCBPO operating license also has specific requirements for the office location.
It must be located in a formal office building, not in residential areas, hotels, or non-commercial premises; there must be a clear lease contract or property ownership; comply with industry and local government regulations; must not overlap with POGO locations.
Whether it is a banned or under-investigation offshore gaming operator (POGO) location, as long as the SCBPO location overlaps with it, it cannot be allowed, otherwise, it is very likely to be considered as conducting illegal activities.
How likely is it for POGO companies to transform into SCBPO companies?
The Presidential Anti-Organized Crime Committee (PAOCC) decided on December 20th that SCBPO companies are not affected by this ban and can continue to operate.
So, the question arises, can POGO companies transform into SCBPO companies?
To achieve this transformation, it is necessary for POGO companies to meet the registration conditions of SCBPO, especially not to engage directly in gaming activities and to ensure that at least 95% of the employees are Filipino citizens.
Additionally, POGO companies need to reapply and obtain a PAGCOR SCBPO operating license, and also prove that their business model fully complies with the requirements of SCBPO.
In this way, if they want to ensure their employee team, it does not meet the requirements of SCBPO, and they have to dodge and face legal risks. But if they want to switch to the SCBPO model, it not only means a major internal overhaul and transformation but also means losing high revenue. It's really a dilemma!
It's more regrettable that PAGCOR had already clearly stated in mid-September that it would temporarily suspend the issuance of new SCBPO licenses.
However, as they say, but in five months, the number of SCBPOs has changed from more than a dozen to 100, and there must still be a lot of tricks! It's no wonder that the Philippine authorities have noticed that many Philippine offshore gaming operators are still posing as Business Process Outsourcing (BPO) companies and continuing to operate.
A few days ago, after a focused inspection of special category business process outsourcing (BPO) facilities, the Presidential Anti-Organized Crime Committee (PAOCC) stated that it will increase enforcement efforts in January, focusing on checking hotels, resorts, and communities suspected of harboring small illegal POGO centers.
In addition to SCBPO, many companies are also seeking the PIGO way to return to the Philippines.
PIGO (Philippine Inland Gaming Operator) is also a type of gaming license established by the Philippine government, different from the POGO (Philippine Offshore Gaming Operator) license, it mainly allows licensed enterprises to operate and provide services within the Philippines, not targeting overseas markets.
The main difference from POGO is that it targets Philippine local residents and tourists; mainly provides services for physical casinos and online platforms, users need to register and pass identity verification before participating.
So, can POGO transform into PIGO?
Theoretically, a POGO license cannot be directly converted to a PIGO license, because the service targets and operational requirements of the two are completely different. But companies that meet the conditions of PIGO can apply for a new PIGO license, rather than converting on the basis of an existing POGO license.
The key difference is: the licensed enterprise must meet the operational conditions and localization requirements of PIGO. PAGCOR will conduct a new review of the applicant company's background, financial capability, and operational plan.
It is worth mentioning that PIGO needs to operate within a designated area or venue. Local employees must at least reach 60%-70% of the total number of employees.
If POGO wants to transform into PIGO, it will inevitably be subject to stricter Philippine legal supervision, and the customer group will also be significantly reduced.
Whether it's SCBPO or PIGO, the work of the pushes, nine out of ten, is in jeopardy!
Now, with less than a week left until the final deadline of the ban, the Philippine Bureau of Immigration has already reminded that after the president ordered the closure of their business by the end of the year, the departure deadline of December 31 will no longer be extended.
As it coincides with Christmas and New Year, security is also relatively chaotic, so the pushes should pay more attention to their personal safety!
