Philippine think tank the National Tax Research Center (NTRC) said in a new report that the country has what it takes to transform into one of the key players in the global offshore gaming industry due to the increasing number of online casino operators.
According to local newspaper the Philippine Star, the NTRC said in its report titled "Profile and Taxation of Philippine Offshore Gaming Operations" that the country has several advantages over other Asian counterparts when it comes to making it big in the online casino sector.
In the Philippines, offshore gaming is legal and the government issues licenses to operators that pass all requirements and regulations provided by the government. Respective regulators are also keeping watch of operations to ensure that no laws are breached.
Among the advantages listed by the NTRC in terms of the country's potential in the industry are as follows: quality buildings for the offshore gaming business, accessible locations, high-end telecommunication facilities to support business, and low power interruption levels in suitable areas.
The NTRC further argued that the country has advantages "in terms of availability of office space, labor, tax, incentives, and technology," which makes it a suitable location for interested offshore gaming companies to consider.
Last year, the Philippine Amusement and Gaming Corp. (PAGCOR) rounded up ₱11.99 billion from the offshore gaming sector in two years, with only ₱2.52 billion going to charges.
To further attract interested entrepreneurs who want to tap into the Filipinos' fondness for offshore gaming, the NTRC urged Philippine policymakers to pass the Corporate Income Tax and Incentives Rationalization Act.
The said bill, if passed into law, should help improve the country's incentives system and could attract foreign investments, especially those under integrated resorts and companies with similar operations.
The PAGCOR has issued a moratorium on new licenses for offshore gaming operators as the country has yet to patch up some issues in the industry that regulators and industry experts previously raised.
Despite optimistic sentiments about the Philippines' offshore gaming industry as a whole, the NTRC noted that there need to be improvements in auditing and tax collection structures in the country, the Inquirer reported.
Among the major problems that the Philippines' Department of Finance (DOF) has yet to resolve is the unpaid corporate income taxes that unregistered operators in the country should have remitted.
The NTRC pointed out that there is a lot of space for growth in the industry but unless the issues are resolved, the country cannot attain its full potential.
