LAST WORD 38
iGaming feels Beijing’s sting Sharon Singleton
Managing Editor, AGB
In our January lookahead for 2019, our industry experts predicted a likely crackdown on online gambling in Asia and in light of recent events their forecasts have proved highly prescient.
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he Chinese will make it increasingly Philippine Amusement and Gaming Corp. (PAGCOR) difficult to move money in and out, said it would put a temporary halt on new licenses to access the sites and to service for Philippine Offshore Gaming Operators while it what’s needed by pressuring various reviews regulations. But PAGCOR Chair Andrea Domingo was quick governments to not accept illegal immigration in the sector,” said Harmen Brenninkmeijer, managing to add that the assessment would be completed by the end of the year and she was optimistic that partner Dynamic Partners. While Frederic Gushin, managing director of the regulator could find a way forward for further Spectrum Gaming said: “The online gaming facilities in expansion of the sector, which has proved such a the Philippines and Cambodia will come under increased lucrative money spinner for the Philippines. There are 58 POGO licensees, with three scrutiny by regulators and law enforcement and cryptocurrencies will become more widespread and even more applications still pending. PAGCOR estimates that they will generate PHP8 billion controversial in 2019.” this year, a healthy contribution After months of mounting to its budget for nation building. pressure and attempts by Manila Despite PAGCOR’s suspension, to bring its online sector into Praising the rumblings from Beijing line with employment and tax Cambodia’s ban, have continued. regulations, Beijing finally said a China Foreign Praising Cambodia’s ban, enough was enough. a China Foreign Ministr y In a strong ly-worde d Ministry spokesman spokesman in a regular briefing statement issued through its in a regular briefing urged Manila to do the same. embassy in the Philippine capital, So far it has resisted, with Beijing urged the government urged Manila to do Victor Padilla, a senior manager to protect its citizens working the same. of PAGCOR’s policy and licensing in the country and vowed division, insisting there are no a crackdown on any firms Chinese corporations operating targeting its nationals. in t he PO GO s e c tor. His Cambodia, the recipient of billions of Chinese investment into industry and explanation was largely a technicality, that they infrastructure, sat up and immediately took note. It are offshore corporations with a local unit in the has banned the issue of any further online licenses and Philippines. He avoided mention of the fact that said it won’t renew existing ones when they expire. hundreds of thousands of Mainland Chinese actually In the government directive, Prime Minister Hun were working in the business. Beijing’s periodic campaigns have a major impact Sen said “foreign criminals have taken refuge in the form of this gambling to cheat and extort money on gambling across Asia. President Xi Jinping’s antifrom victims, domestic and abroad, which affect the corruption drive sent Macau’s high rollers running for cover, with gross gambling revenue down sharply security, public order and social order.” The Philippines, which under President Rodrigo from a 2013 peak. But now, it’s clawing its way back up. This time it’s the turn of the online gaming sector Duterte has shifted his country’s allegiance from the and it remains to be seen how long, or determined U.S. to China, has been more circumspect. It has acted, though not with enthusiasm. The Beijing’s push will be.
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Asia Gaming Briefings | September 2019
