The Philippine Amusement and Gaming Corporation (PAGCOR) is the government-owned and controlled corporation established to regulate all games of chance in the Philippines. It was created in 1976 to oversee the operation of gaming casinos, to generate funds for the government's developmental projects, and to help curb illegal gambling.
PAGCOR is a vital arm of the government in nation building. The state-owned firm is the third biggest source of government funds with annual revenue of P28 Billion (2007). PAGCOR is proof that casinos and legalized gaming can be a valuable source of government funding and an effective engine for national development. In its endeavor to generate more funds for the government's pressing concerns, PAGCOR has ventured beyond casino management. To meet the challenges of the new millennium, the gaming corporation is constantly looking for ways to improve its gaming products and maximize the efficiency of its gaming operations.
Philippine Gaming Market
Sports betting is, to a vast population of Filipinos, a way of life, from cockfighting to horseracing and basketball. Betting on number combination games such as lotteries and basketball "ending" offered by illegal bookies, has become part of millions of Filipinos' daily routine. The gaming market in the Philippines is estimated to be over P100 Billion annually. Illegal gambling accounts for almost half of this.
Internet Gaming Market
The Internet gaming global market was estimated to be US$10 Billion in 2002 and is predicted to reach US$14.5 Billion in year 2006. Internet Sports Betting and Internet Casinos dominate most of these revenues. Although the U.S. now accounts for half of industry revenues, the gaming market is changing and the biggest area of growth is in Europe and Asia.
PAGCOR aims to go global and is keen on gaining a share of the Internet gaming revenue. Internet gaming will allow PAGCOR to connect with local and foreign gaming enthusiasts with less investment cost.
Partnership with PhilWeb
In 2002, PhilWeb refocused its business to technology-enabled gaming. It established partner relationships with leading software providers and built its own gaming software capability. On the basis of this expertise, PhilWeb successfully negotiated a contract with PAGCOR to become its principal service provider for Internet Gaming technology. To date, PhilWeb has concluded four agreements with PAGCOR, as follows:
1. Intellectual Property License Agreement (IPLMA) for Internet Sports Betting
2. IPLMA for PAGCOR e-Games Cafés
3. IPLMA for Premyo Sa Resibo mobile game
4. IPLMA for TXTINGO mobile game
In addition to these agreements, PhilWeb assists PAGCOR in the development and operation of various technologies related to gaming. These include:
• Development of betting platforms with cash handling systems
• Development of new games
• Marketing and distribution
• Advertising and promotion
• Development of nationwide network
