LICENSE IN THE PHILIPPINES
Casino licenses issued by the government of the Philippines are considered to be one of the most valuable licenses in the online gambling market. This is not surprising, because the Asian online casino market is regarded as the most profitable one. Moreover, the cost of a license is not as high as in many other jurisdictions.
Southeast Asia has been an attractive market, especially from the point of view of profitability. In fact, the Philippines is the center of Internet gambling in the entire region. Thanks to the fast technological development, a licensed online casino with local jurisdiction will always be at the top of global gambling. So it’s not surprising that local licenses are in high demand.
It is very expensive to open a company in the Philippines. However good conditions of taxes make this location one of the most attractive in the entire Asian region. Leading analysts have been predicting a further reduction in the tax rate for several years, which will have a positive effect on the flow of foreign investors.
Also, the registration of new organizations in the Philippines is simplified, and it is possible to create your own data center, which will improve the quality of provided services. This means that the operator will no longer be technically dependent on third-party companies.
Organizational and legal forms in the Philippines
A limited liability organization may eventually transform into a CEZA company.
Corporate-tax rate in the Philippines
The licensed casino and its owner are exempt from taxes for the next 4-6 years after receiving the license. Thus, operators who are already working in the country will receive 4 years of tax exemption. Companies who operate in this region for the first time will get 6 years. In addition, there is a tax rate of 5% of the casino’s gross income. There is a unique loyalty system for foreign citizens.
Additional game bet
A restrictive interactive license requires paying a tax of $ 48,000 (for the first year). To extend the license for another year, you need to transfer 60 thousand dollars to the regulator’s bank accounts (for the second and next years of the license). The license is issued for exactly 12 months. You need to pay your attention to the fact that this tax must be paid in one payment.
The licensed online casino is obliged to pay damages to all players whose funds were stolen by fraudsters. Therefore, the funding of the company should be at the highest level. The same applies to security. Moreover, the regulator carefully monitors the payment of winnings, in particular, the deadlines for fulfilling obligations to transfer funds to players’ accounts.
Cost of purchasing a license in the Philippines
If you take a decision to establish a licensed casino, you will have to pay 40 thousand dollars for the full license (applies to the gaming club and bookmaker’s). You have to be informed that 15 thousand of this amount won’t be returned back to you in case of refusal of licensing. The regulator will return 25 thousand dollars to the operator if he does not meet the strict requirements of the jurisdiction.
If we talk about the regular game collection, it is only 2% of the gross profit for the month. There is an additional gaming fee, which is 48 thousand dollars, but only bookmakers are required to pay it.
License renewal costs 40 thousand dollars
A license for bookmaker’s will cost much cheaper – 26 thousand dollars. 12,000 dollars from that amount are non– refundable. If the license is rejected, the regulator will return only 18 thousand to the operator.
Also, $3 500 will be retained from each request for a license.
Moreover you need to take into account the fact that there is a fee for additional sports events equal to $ 2 000.
When resuming, you need to pay a fee of 15 thousand dollars, it must be transferred in accordance with the requirements of the document management.
You will have to pay in total $60 000 per year for a license for a bookmaker’s.
Requirements for games and slots
In the Philippines, there are very strict rules and standards regarding financial transactions between online casino operators and their customers. In principle, similar conditions for the security of transfers are set by world banks. In addition to the security of transactions, the casino is required to regularly provide a detailed report on made payments.
Money laundering and other fraudulent activities
Any gambling company that provides services on the Internet is regularly checked for fraudulent activity. Unfortunately, due to numerous suspicions of money laundering the Philippines suspended the issuance of licenses in 2017 for the next 5 years.
Online casinos operating in this jurisdiction cannot provide their services to local players, only to foreign ones. This applies not only to gambling clubs, but also to bookmakers.