It's a contrasting narrative between two archipelagos steeped in gambling culture. In the dynamic landscape of ASEAN, the paths diverge sharply for the Philippines and Indonesia, both prominent island nations.
Under the helm of Ferdinand Marcos Jr., the Philippines is charting a course of gambling reform, actively fostering a more liberalized sector. Notably, the country is experiencing a surge in the number of iGaming companies setting up shop within its borders. On the flip side, Indonesia, the larger of the two, positioned in the Western Pacific, is steadfast in its endeavor to stamp out what it perceives as the looming menace of online betting, opting for a blanket ban.
A Trailblazer in the Philippines
Stepping into her new role as President and Chief Operating Officer of the Philippine Amusement and Gaming Corporation (PAGCOR) is lawyer Wilma Eisma. She marks a significant milestone as the first woman to occupy a pivotal position within the national monopoly and regulatory sphere of the gambling industry.
PAGCOR Chairman Alejandro Tengco, who has steered the organization thus far, expressed his delight at Eisma's appointment, stating, "We are thrilled to have [her] join us as our President and Chief Operating Officer. Her wealth of experience spanning both the public and private domains assures us that she will be an invaluable addition to our team."
Crackdown on iGaming in Indonesia: Stricter Measures to Combat Online Gambling
Indonesia, the world's largest Muslim country boasting a population of 275.5 million, has recently announced stringent measures to crack down on iGaming, labeling them as "draconian". The nation, comprising over 18,000 islands and islets, has prohibited traditional land-based gambling such as bingo, poker, roulette, and sports betting since 1974. Despite this ban, offshore gambling sites continue to accept Indonesian citizens worldwide. However, a significant shift may be underway.
In the past year alone, Indonesia's Ministry of Communications and Informatics (Kominfo), tasked with internet censorship and communications oversight, has blocked access to around one million instances of online gambling-related content. Minister Budi Arie Setiadi, leading Kominfo, aims to escalate enforcement efforts further. Leveraging Indonesia's strict Islamic laws, Setiadi has unveiled plans to establish an elite enforcement unit dedicated to combating gambling, with the ultimate goal of eradicating iGaming from the country.
"This week, we will finalize steps to form a specialized group to tackle online gambling," declared Minister Setiadi. "As gambling is outlawed by our laws, it is imperative to strengthen eradication efforts. The Ministry of Communications and Information will prioritize shutting down iGaming platforms, with enforcement entrusted to law enforcement agencies."
In stark contrast, the Philippines, home to thousands of semi-clandestine offshore gaming providers known as POGOs, has opted to embrace online gambling through taxation, regulation, and privatization initiatives, diverging from Indonesia's hardline stance.
Optimism Surrounds iGaming in the Philippines
In its latest fiscal year ending September 2023, PAGCOR, the operator of 41 land-based casinos in the Philippines, revealed a remarkable annual revenue of $980 million, marking a substantial 42.8% increase year-on-year. PAGCOR Chairman Tengco, speaking at the recent ASEAN Gaming Summit, expressed serious considerations towards privatizing all PAGCOR-operated casinos, aiming to achieve this milestone before his term concludes in 2028.
The Philippine gambling landscape receives a further boost with the resurgence of high-stakes players from China, Thailand, and South Korea, returning post-pandemic. President Bongbong Marcos' favorable stance towards gaming adds another layer of optimism.
PAGCOR's ventures extend into the digital realm as plans for launching its online casino gather momentum. Meanwhile, regulatory oversight over contentious offshore POGOs has been bolstered.
The Philippines appears to have finally secured its seat at the regulated iGaming table, albeit arriving relatively late. As the adage goes, success often requires taking the initial step, and the Philippines seems poised to capitalize on its gaming potential.
