Philippine gaming company PhilWeb will not be able to resume operations as provider of electronic gaming systems yet, although it obtained accreditation from the local gambling regulator PAGCOR earlier this week.
Citing comments from PAGCOR, local media reported earlier today that the regulatory body first needs to procure a third-party audit service provider before PhilWeb and its likes is allowed to recommence operations.
Previously an operator of online gambling cafés across the Philippines, PhilWeb was forced to close down and surrender its license last year due to the online gambling crackdown launched by President Rodrigo Duterte upon assuming his post.
The gaming company and its then owner Roberto Ongpin was paid particular attention by Mr. Duterte. The Philippine President accused Mr. Ongpin of being an oligarch who meddled with the nation’s gaming industry. The media attention the anti-gambling campaign gained forced PhilWeb’s majority stake holder to sell his almost 54% stake in the company in September 2016.
Being refused renewal of its license, PhilWeb argued last year that it was not the operator of the games offered at different facilities across the country and that it merely served as a service provider. The company also pointed out that said games should not be classified as online games as they could not be accessed by players no matter they were located. Such games could only be accessed at designated facilities licensed by PAGCOR, the company further clarified.
The gaming company was eventually allowed to resume business but only as a provider of electronic gaming systems. However, it will have to wait a little more before being able to do so, as explained by PAGCOR.
What Role the Third-Party Audit Service Will Play in Philippine’s Gaming Industry?
Earlier this year, PAGCOR announced that it would hire a third-party auditor to assess and audit its new online gambling licensing system. An official expression of interest process was launched and interested parties were encouraged to join it. The gambling operator is yet to complete the procurement process and this is why PhilWeb will not be able to commence operations, despite its recent accreditation.
The audit service or else referred to as Electronic Management Gaming System (EMGS) will be tasked with monitoring for violations of accredited providers of online gaming services. What is more, the third-party auditor will have to make sure that the information provided by both iGaming providers and operators is valid and contains comprehensive details about player registrations and funds.
PAGCOR has previously explained that EMGS’ establishment would keep the gambling regulator informed about its licensees and would ensure that those are regulated properly and comply with Philippine gambling regulations.
All accredited providers, PhilWeb included, will have to receive a Notice to Proceed from PAGCOR in order to be able to commence operations.
