The Philippine Economic Zone Authority (PEZA) will allow online gaming operators in PEZA-accredited buildings but these would not be entitled to incentives.
Charito Plaza, PEZA director-general, said the agency has reached a compromise with a task force allowing owners of PEZA-accredited buildings to lease out their “extra” spaces to online gaming operators that are licensed with the Philippine Amusement and Gaming Corp. (Pagcor).
Plaza said the agency will require these companies to secure permits to locate in the PEZA-accredited buildings.
But Plaza said she still has to seek guidance from Malacanang on how online gaming operators registered under the Cagayan Economic Zone Authority (CEZA) and the Aurora Pacific Economic Zone and Freeport Authority (APECO) and are located in PEZA buildings can be regulated.
But offhand, Plaza said PEZA is proposing these online gaming operators, while already registered with CEZA and APECO should also obtain from Pagcor a license as Philippine Offshore Gaming Operator (POGO).
Like the Pagcor- or POGO-licensed locators in PEZA buildings, these CEZA- and APECO-registered online gaming firms must secure permits to locate in their respective buildings from PEZA .
“This will be a political decision. My earlier pronouncement is that gambling of any type is not in the mandate of PEZA as it only accredits business process outsourcing (BPO) companies and call centers. But because of Malacanang’s request that we allow (online gaming companies) in our buildings, we will give them permits to locate,” Plaza said.
“We want to support online gambling but it should be properly and orderly done. (Government should decide) which among the three agencies we should allow in PEZA… Pagcor, CEZA or APECO? I cannot decide on that,” she added.
Plaza said companies registered with CEZA and APECO are entitled to incentives which PEZA cannot grant to online gaming operators.
“We can only give them permits to locate… we just accredit the building and it is up to the owner whether or not it will lease the extra spaces in its building,” she added.
To be accredited with PEZA, a building should have 10,000 square meters of space and 20 percent should be allocated to BPOs and call centers.
The rest can be leased out to a non-PEZA registered company.
“If the building owner wants to accommodate Pagcor, CEZA and APECO companies, we will give the permits to locate in PEZA buildings. Pagcor can only give the license while CEZA and APECO, if they are so registered, can give the incentives,” Plaza added.
She said PEZA supports Malacanang’s directive to promote online gaming especially because Pagcor allots 70 percent of its earnings to social funds.
But she said the government should decide up to what extent can CEZA- and APECO-licensed gaming firms can stay in PEZA buildings which temporarily accommodate them while the two authorities are completing their infrastructure.
“I have reservations in the case of APECO and CEZA. I am still waiting for guidance of Malacanang,” Plaza said, For now, APECO and CEZA registered online gaming companies located in PEZA buildings can observe status quo but that the building owners should properly account them or they face raid or audit.
There are about 150 gaing companies registered wth CEZA and which are located in PEZA-accredited buildings.
BPOs and call centers providing technical, software and back office support to these online gaming companies are exempt from the permit requirement.
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