Online gambling: Good for whose business?

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The Chinese government is fighting online gambling, but companies are moving operations offshore to avoid sanctions.

The Chinese government is fighting online gambling, but companies are moving its operations offshore to avoid sanctions.The Philippines’ regulatory environment is weak, but government agencies are slowly trying to cover the gaping holes.MANILA, Philippines – With a business degree from one of the Philippines’ top universities, Jake, not his real name, expected to apply what he learned in college.

Jake said the company he was working for had around 200 employees with a fair mix of Filipino and Chinese employees. "We have a code, when we say something like ‘aja’ out loud, it means that there are government agents or police about to go in the office and we need to hide everything."He said the industry was giving Filipinos opportunities and paid well. On top of their salary, workers enjoyed bonuses of at least P500,000 * a year.

Jake said he does not know of a similar story in his company, but added that he did not ask whether the rates promised were actually the salaries of his co-workers. Jake left the company after a couple of months because he felt uncomfortable about its questionable and suspicious operations.Despite all of President Rodrigo Duterte’s tough talk against gambling, the Chinese have found their gaming haven in the Philippines. An expert said it shouldn’t come as a surprise.

In 2016, Duterte promised he would “destroy” Ongpin. That remark eventually led to Ongpin’s resignation from the company.Duterte’s remarks also led to Pagcor ending its 13-year contract with Philweb, thus allowing the sale of gaming licenses outside special economic zones. The Philweb contract essentially allowed it to enjoy a monopoly.

Companies also need to register and pay for their live play streaming provider , accreditation of the local partner , gaming provider , and customer relations , on top of other operation-related fees paid to Pagcor. To start operations, gaming firms each need to shell out a total of around $900,000 .

There are currently 56 Pagcor-approved online gambling operators in the Philippines, but there may be more that are unregistered, which means that they are able to evade taxes. For instance, workers enter as tourists in the Philippines, with some processing employment requirements, or completely doing away with them.

Other foreign workers who already have working visas or have alien employment permits issued by the Bureau of Immigration are also required to register with the RDOs.

 

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