In the often-murky world of Asia’s online gaming scene, where regulated markets are few and far between, the Philippines is emerging as a unique outlier in its efforts to buck that trend.
Some might question the success of those efforts thus far, if the so-called POGO or licensed offshore gaming sector is anything to go by. As regular readers of Inside Asian Gaming would know, the POGO name has been tainted by a series of scandals in which businesses purporting to be licensed online gaming companies have used their position to engage in serious criminal activity. As was the case with one company in Clark’s Sun Valley illegally operating under a licensed POGO, those activities have included cryptocurrency investment scams, illegal detention and even human trafficking.
While there have been plenty of calls for POGOs to be shut down completely in the wake of such discoveries, regulator PAGCOR has shown its hand by instead doing all it can to clean up the sector, seemingly insistent that a clean offshore gaming industry can still be of significant benefit. Its recent actions include placing all previously licensed POGOs under a probationary stance – a list of those who have successfully cleared more detailed probity checks is due to be announced in early October – and promising to pursue the beneficial owners of any who do or continue to do the wrong thing. Only time will tell how successful that venture is.
Where the Philippines is seeing far more concrete activity is in what it calls remote gaming, particularly as it relates to the domestic market. Unlike the more traditional form of online gaming that incorporates digital slot machines and table games – or in many cases live dealer baccarat – remote gaming streams both live gaming tables and live slot machines straight from the casino floor to domestic customers around the country. For those who have not seen such a set-up on live slots, this literally entails a camera affixed over the screen and streaming back to a player who is controlling the slot machine play from wherever he may be at the time. It’s quite the sight!
While many casino operators continue to offer proxy betting and live dealer services of their own, this domestic-facing remote gaming experience is viewed by many as the most exciting new opportunity to hit the market in years, prompted ironically by the need to find new revenue streams during the COVID-19 pandemic. In fact, operators in both Manila and Clark told IAG that remote gaming is their single fastest growing segment, with dedicated sections of gaming floor space being set aside specifically to accommodate products for the remote gaming market. Industry suppliers have also confirmed increasing sales for this segment, with demand currently comfortably out-stripping supply. Little surprise then that some Philippines junkets are now offering similar services for international players.
The regulated online gaming sector in Asia may continue to face significant challenges, but the Philippines is a shining example of what a little innovation can bring.
Ben Blaschke
Managing Editor
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