What is PIGO (Philippine Inland Gaming Operator)?

 

The Rise of Philippine Inland Gaming Operators (PIGO): Strategy, Impact, and Outlook

In recent years, the Philippine gaming industry has seen the rise of a new trend — the emergence of Philippine Inland Gaming Operators (PIGO), which is gradually replacing the earlier Philippine Offshore Gaming Operators (POGO).

 

Background of the New Trend:

Three major casinos in Metro Manila have already obtained PIGO licenses, marking a strategic shift in the country's gaming operations. Compared to POGOs, PIGO casinos are now focusing on online electronic table games rather than live dealer games. This move is seen as a strategic adjustment in response to the pandemic’s impact on the gaming industry.

 

Differences Between PIGO and POGO:

POGOs primarily serve international players, especially from China. In contrast, PIGO licenses allow operators to offer online gaming services to players within the Philippines. This means PIGO effectively legalizes the domestic online gambling market. Players must meet certain eligibility requirements and can only deposit and withdraw funds at authorized PIGO physical branches.

 

Significance and Function of PIGO:

Legalization and Regulation: The introduction of PIGO helps legalize and regulate the inland gaming market in the Philippines. It provides domestic players with a legal online gambling platform, helps combat illegal gambling activities, safeguards the interests of both operators and players, and ensures the security of player funds.

1. Revenue Growth: For casinos, PIGO offers a way to attract local players. This is crucial to revenue generation, as VIP gamblers often contribute 10–15% of a casino’s annual income. Even during disruptions caused by the pandemic, PIGO has demonstrated its ability to drive significant revenue.
2. Expansion of the Online Gaming Market: The Philippine government's initiative aims to expand the online gaming market. Specific land-based integrated resorts (IRs) such as City of Dreams (COD), Solaire, and Okada are authorized to offer online gambling activities. Licensed PIGO operators can broaden their range of online services, providing domestic gamblers with more choices.
3. Transformation of Gambling Offerings:
   The PIGO industry is defined by its transition to online electronic table games. These games are based on Random Number Generator (RNG) technology and include electronic slots, blackjack, and roulette. Their online format and seamless accessibility have made them a key focus of the market.

 

Licensing and Access Control:

Currently, access to PIGO services is restricted to VIP members of select integrated resorts. This aligns with the Philippines' strict regulatory stance on local residents participating in gambling. The government is adopting a cautious approach in expanding the gaming market to ensure its long-term sustainability.

 

Impact and Outlook:

The rise of the PIGO sector is generating impact on multiple fronts. It has the potential to create new employment opportunities, which is particularly beneficial for an economy affected by the pandemic. Additionally, the tax revenue from PIGO is expected to increase, helping the government raise public funds. However, challenges remain—especially in terms of regulation, ensuring fairness in gameplay, and protecting player rights.

 

Government Support and Underlying Reasons:

The PIGO industry has received strong support from the Philippine government for several reasons. First, the country’s gaming sector was severely impacted by the COVID-19 pandemic in 2020. With casinos forced to shut down, gaming revenues dropped sharply, prompting the government to seek new sources of economic growth. Second, the development of the PIGO industry is seen as a potential driver of economic recovery, capable of creating new employment opportunities. Additionally, tax revenues generated from PIGO operations help ease the government’s fiscal pressure.

 

Key Differences Between GCP, PIGO, IGL, and POGO Licenses:

Target Audience:

• GCP: Onshore land-based gaming customers within the Philippines.
• PIGO: Online gaming customers within the local Philippine market.
• IGL: Offshore online gaming customers, primarily targeting overseas markets.
• POGO: Offshore online gaming customers, primarily targeting markets such as mainland China and other foreign regions.

Operating Model:

• GCP: Land-based operations.
• PIGO: A combination of land-based and remote operations.
• IGL: Offshore online operations.
• POGO: Offshore online operations.

Regulation and Compliance:

• GCP: Onsite inspections and financial audits.
• PIGO: Onsite and technical inspections, including Know Your Customer (KYC) checks.
• IGL: Technical monitoring and data transparency.
• POGO: Technical monitoring and data transparency.

 

Future Outlook:

As the PIGO industry continues to grow, its impact on the Philippine economy and gaming sector will become more evident. However, the government must carefully balance economic development with regulatory compliance to ensure the industry’s long-term sustainability. While managing risks and protecting player rights, the government also aims to promote innovation within the PIGO sector, injecting new vitality into the country’s gaming landscape.