Igaming8

Written in Chinese
Katy 
Level Guard
2
 

Why the Philippine government has moved a large number of gaming companies abroad and is still vigorously suppressing the gaming industry

What does the Philippine government map? If the Philippine gaming industry moves out of other countries, what impact will it have on the Philippines?

5 Answers
Badge
Badge
Shaw 
Level Guard
3
 
The online gaming industry has become a new and important factor in China-Philippine relations. The uniqueness of the Philippine online gaming scene has gain traction to Chinese customers. With the advancement of technology, customers can now place bets through their computers or mobile devices within the comforts of their home. Where there is profit, there will naturally be an industry. China's crackdown on gambling is the first in the world, and it has achieved great results. According to estimates by the Philippine Gaming and Entertainment Company, license fees and royalties from the offshore gaming industry will reach 8 billion pesos (S$210.45 million) this year, an increase from last year’s 6 billion pesos (S$157.84 million) 33%. In addition to the 8 billion pesos, the industry has also contributed more than 12 billion pesos (S$315.68 million) to the government through other means in the past three years of legalization. Following this trend, most local gaming operators seek assistance from Chinese employees to facilitate business development. In terms of employment, the Philippines currently has 58 accredited online gaming operators with approximately 138,000 employees; 60% to 70% of employees are foreign nationals (Chinese nationality), and the remaining 30% are Filipinos However, in the global digital age, cyberspace transcends national boundaries, and the legal systems of each country are different, which undoubtedly provides manipulative space for those who exploit loopholes. Moreover, even though the abrupt growth of the gambling industry has brought huge income to the Philippines, the tax losses are also considerable. Many Chinese enter the Philippines as tourists and work in gaming-related industries, but they have not applied for work permits. Philippine employers pay these Chinese employees through Alipay and WeChat and they can perfectly avoid taxation. So far, the Philippine Internal Revenue Service estimates that due to the non-payment of taxes by employees in the gaming industry, the government loses about 24 billion pesos (631.36 million SGD) annually. Since July, the Philippine government has imposed a stricter tax system on foreigners working in the Philippines, including online gambling operators. The Philippine government has begun to force the gaming industry employees to automatically withhold personal income tax. Pornography, gambling, and drugs are not separated, and the unregulated online gaming industry is also contributing to illegal criminal activities such as kidnapping, fraud and prostitution. Recently, anti-kidnapping group of the Philippine police arrested three Chinese citizens. They allegedly kidnapped a Chinese who owed gambling debts in Balanyugi City, Philippines. Philippine Immigration Bureau agents arrested several Chinese in several operations in Metro Manila where these suspects were wanted by China for conducting online lottery fraud in China. These fugitives will be blacklisted by the Immigration Department and banned from re-entering the Philippines. The gambling industry has also raised serious concerns in the Chinese society. For the Chinese, "pornography, gambling, and drugs" are the root causes of the destruction of a family. Philippine Foreign Minister Lochin has also recognize the negative impact of gambling in China's social structure. In addition, the online gambling industry has not been only a legal issue. The gambling industry has always been inseparable from many underground industries, such as money laundering. If it develops without restrictions, it cannot be guaranteed that it will not become a social problem in the Philippines. The Cambodian government, which is also troubled by the harm of the gambling industry, has also stated that online gambling and betting activities are not conducive to the long-term economic development of the country and such activities should be prohibited. Cambodia needs to develop the national economy through tourism, cultural and eco-tourism services, rather than relying on Internet gambling to increase national income. Discussions on the regulation of the online gambling industry in the Philippines has been on the table. Philippine President Duterte has suspended the issuance of licenses to new offshore gaming company applicants. What the Philippines can do and is willing to do is to strictly supervise the online gambling industry to make it abide by the rules and regulations of the Philippines. Since no new licenses have been issued, the dozens of original franchise companies should be strictly managed. For employees employed in the gaming industry, especially foreign employees, strict identity management must be adopted. For foreign employees who use temporary tourist visas to work, it can be stipulated that once they are found out the employer shall be held accountable and the license shall be withdrawn. Strictly implemented measures can allow employers to dispel the idea of reducing costs and exploit loopholes and operate in compliance with laws and regulations. This is also the necessary action for the Philippines to stop the loss of tax sources, prevent potential crimes, and ensure national security. Hundreds of thousands of gambling practitioners roaming the streets of Manila not only have potential criminal dangers, but if they are not regulated, some people may collude with gangs and traffic drugs. Many of these matters overlap the scope of the legal system in both countries. Some of these issues may have started inconspicuous before but the growing concern in the impact on societal structure and international relations has gain the attention of both Chinese and Philippine governments. With both countries taking joint actions, we can hope to gradually resolve the thorny issues surrounding online gambling.
0
Reply
Philippines government ≠ Philippines president ≠ Philippines senators What online and land-based casino brings to Philippines? Tourists, foreign investment, economy development and higher employeement rate: in 2019, online gambling contributes P551 billion (10 billion USD) to Philippine economy yearly. Philippines GDP of 2019 is 330 Billion USD, so gambling industry contributed 3% of its GDP. This only refers to DIRECT contribution, if you consider peripheral contributions and those underground gaming companies, it is definitely a shocking number. Look at following charts, it indicates the real-estate construction or rental market for gaming companies, it is huge, usually the rental fee for gaming companies can range from 30USD - 100USD/sqm/month. Other spending that gaming companies have to pay including: internet, FMCG, banking, entertainment and other spendings, most of the spending will go to Philippines market, taxes, license fee and most importantly - employeement rate. However, there is always another side of one story, what else brought to the country is robbery, kidnapping, tax evasion, this is exactly why some senators hate gambling industry, even president himself said he hates gambling but he also said he can only let gambling continue earlier this year, because of ecomomy consideration. FUTURE? Online gambling enterprises, mainly operated by foreigners, have resulted in an influx of Chinese workers in the country, many of them without working permits. Estimated yearly there are 200,000 - 300,000 Chinese employees in Philippines working in Gaming industry, since last year Chinese government started 'Return Advice' and 'push' Chinese employees return to China, this will result in a employee shortage situation and make some gaming companies cannot have enough workers, some of them already started to move to other countries, this will affect Philippines' economy. Having said this, it is not Philippines government 'push' gaming companies out of the country, it is these companies do not want to pay heavy taxes and their business cannot run smoothly upon Chinese government's pressure on gaming employees. This situation, in a short period, is not reversible, only huge and regulated gaming companies will sustain in Philippines, those unlicensed and underground companies will seek a new place to stay, recently, Ukraine, UAE.
answer-image
4
Reply
I forgot to mention that there is still the impact of the epidemic, even if I want to come to the Philippines, I can't come.
1
Reply
I think Philippines Government is requesting online casino operators to pay taxes and somehow that tax is way too heavy to casinos, this will cause a heavy burden to them and affecting their operation, they'd rather to move to lower tax rate countries instead of still staying in Philippines. Both of them are correct, they just see things from different angles.
0
Reply
Badge
Porsche 
Level Guard
2
 

Hello, take the liberty to disturb,

I am Porsche-Chen Baixu!

Ask your company if there is a need for a backup computer room or a backup line, or there are IDC needs in Southeast Asia, China, Japan, and South Korea!

We cooperate with several international telecommunications operators in Taiwan, Hong Kong, and Southeast Asia, such as CT, CU, CN2, PCCW, HGC, NTC, PLDT line bandwidth, etc. We hope to have the opportunity to introduce our products to you, and we also hope to In the near future, your company will consider the service of "backup computer room", so that we can have a chance to cooperate!

Xiangyu Technology Co., Ltd.
SIANG YU SCIENCE AND TECHNOLOGY CO., LTD

Sales Department Chen Baixu Porsche
TEL: 02-2515-1535
FAX: 02-2515-1537
Mobile: 0983-657535
E-Mail: [email protected]
Address: 9th Floor, No. 72, Section 1, Minquan East Road, Zhongshan District, Taipei City
Web: www.siang-yu.net
0
Reply