Inside Asian Gaming

inside asian gaming January 2017 4 Gaming regulation a dicey affair www.asgam.com G aming regulation lies at the very heart of our industry. Whether for good or bad, we rely on it to exist and to provide a precise, clearly defined framework within which to operate. But regulation can be a volatile thing. And right now the gaming industry right across Asia-Pacific is feeling that volatility more than ever. Nowhere is there as much uncertainty heading into 2017 as the Philippines, where controversial former Davao City Mayor Rodrigo Duterte’s ascension to national leader has resulted in a drastic change in Filipino gaming regulation. Among Duterte’s first actions upon becoming President seven months ago was to declare that local gaming technology provider PhilWeb Corp – which had long supplied software to around 300 PAGCOR-run eGame cafes around the country – would not have its license renewed. It soon became apparent that Duterte, who has proven to be very much a reactionary leader in his six months in the job, held a personal gripe against PhilWeb chairman Roberto Ongpin, who he described as “an oligarch that must be destroyed.” Also in Duterte’s sights is online gaming. In his very first cabinet meeting after being sworn in last June, the 71-year-old said, “Online gambling must stop – it’s out of control in PAGCOR. I do not want a proliferation of gambling activities all over the country.” He subsequently revoked the licenses of around 200 online gaming sites as well as ordering PAGCOR to sell the 11 casinos it operates. However, Duterte has confused the situation further by flip- flopping on his gaming intentions on numerous occasions – creating a nightmarish landscape for operators trying to map out their future direction. In August, PAGCOR announced that it had changed direction on its blanket stance against online gaming and would instead issue gaming licenses that exclusively targeted overseas players. Licenses, said PAGCOR boss Andrea Domingo, would be for six months and include high fees aimed at recouping around PHP 10 billion in annual revenues lost from President Duterte’s crackdown on offering online gaming services to locals. “We’re readying the application forms,” Domingo claimed at the time. “It’s no longer the Filipinos who are betting but foreigners. “We don’t know yet how saleable it is. There might be no takers or there could be many applicants.” Then in December, Duterte came out with a renewed “zero tolerance” stance, stating he was, “ordering the closure of all online gaming firms. All of them. They have no use.” Once again, the industry finds itself in a state of flux. Further south, Australian lawmakers are looking to close a loophole in the country’s antiquated Interactive Gambling Act 2001 with the Interactive Gambling Amendment Bill 2016. The primary aim of the Bill is to target illegal online casinos as well as prevent licensed online sportsbooks from offering live in-play betting – which is illegal in Australia – via a “click to call” option that effectively simulates a phone call. However, one of the long-term complaints about the Interactive Gambling Act 2001 is that it fails to effectively differentiate between different online games – particularly online poker – which now looks set to be driven out of the country completely. The world’s biggest online poker site, PokerStars, recently shut down its Australian offices in anticipation of the move and will do the same for its online services should the Bill pass in the coming months. But it’s not all bad for the gaming industry. Taking us all by surprise early last month was the news that Japan was set to pass its “IR Promotion Bill” after more than a decade of false dawns that had many wondering if casinos in the land of the rising sun would ever become reality. The Bill did indeed pass, with the subsequent “IR Promotion Bill” to be put forward in 2017 to set out the exact framework within which the industry will operate. It just goes to show that the gaming industry is very much like Forrest Gump’s box of chocolates – you never know what you’re going to get. Ben Blaschke We crave your feedback. Please email your comments to [email protected] . Editorial