The Philippines offshore gaming operators (POGO) have been a hot topic in the Philippines even before the start of the pandemic. Confusing news came out and the latest one was the “POGO Exodus” from the Philippines.
Suncity name was brought up in many reports. A report from the inquirer that named Suncity as one of the POGO that is closing down its offshore gaming unit.
Here is a brief explanation and timeline on POGO.
Philippines Offshore Gaming Operators (POGO)
PAGCOR started the processing of license applications for POGOs only in 2016. In an effort to boost the country’s revenue after shutting down and deciding not to renew the license of local online gambling firm PhilWeb.
There are three license categories.
Category 1 – Involves services that have live streaming with women online gambling dealers.
Category 2 and 3 are sub-sectors of business process outsourcing (BPO) which provide back-office support.
The main issue
The main issue comes from two government bodies. POGO pays directly to PAGCOR and questions the need to pay BIR(Bureau of Internal Revenue). POGO insists that since they are an offshore company. they are not subject to local tax by the BIR. The BIR insists that as long as they are in the Philippines they are subject to tax.
The question of the validity of the taxation from the BIR is left at the hands of the POGO operators. They can challenge the decision in court if they wish to appeal.
PAGCOR has shutdown POGO operators due to the pandemic which started March 15, 2020.
The challenge to Re-opening
Currently, POGO operators who wish to re-open must secure clearance from the BIR. Only after securing the clearance will PAGCOR give them the permit to re-open. POGO’s are still contesting the need to pay taxes to BIR. But now in order to re-operate, they must pay the tax first and question it later.
Suncity clarifies “EXODUS”
Suncity group was mention as part of the company that has stopped its POGO operation.
Suncity Group responded directly to Inside Asian Gaming in the wake of the PAGCOR comments.
“Suncity Group spares no effort to develop itself as a global integrated VIP entertainment conglomerate. The junket business in Manila is definitely important to us and we can’t find any reason to leave Manila at this particular moment.
“In regards to the comment provided by Mdm Andrea Domingo, we think she is referring to telebetting services, which has nothing to do with the junket business that Suncity Group operates in Manila.
“We will continue to develop our VIP entertainment business in licensed gaming operators in Manila, and provide seamless VIP services to our guests.”
Suncity is developing a US$700 million hotel and casino at Manila’s Westside City Resorts World.
