Philippines gaming regulator backs special class BPO sector
MANILA, PHILIPPINES — The Philippine Amusement and Gaming Corporation (PAGCOR) has reaffirmed its support for Special Class Business Process Outsourcing companies (SCBPOs), distinguishing them from recently banned Philippine offshore gaming operators (POGOs) in the country.
Regulatory clarity and business focus of SCBPOs
PAGCOR Chairman and CEO Alejandro Tengco emphasized that SCBPOs operate differently from traditional gaming companies.
“The only difference from regular BPOs is that SCBPOs support the operations of legitimate gaming companies overseas, many of which are listed firms, by providing human resource, marketing, graphic design, accounting, and other back-office work,” he said in a PAGCOR statement.
These specialized BPOs are strictly regulated to handle only product marketing and customer relations activities, with explicit prohibitions against direct involvement in gaming operations or bet solicitation.
Employment impact and growth prospects
The SCBPO sector has emerged as a significant employer in the Philippines, currently providing jobs to nearly 5,000 workers. A notable requirement for these companies is maintaining a workforce that is at least 95 percent Filipino and offering above-industry-standard salaries to local employees.
“This industry has so much potential, and we are fully committed to its growth and capability to generate more employment,” Tengco stated, highlighting PAGCOR’s commitment to the sector’s expansion.
The regulatory support for SCBPOs comes amid broader changes in the Philippine gaming landscape. While President Ferdinand Marcos Jr. implemented a ban on Philippine Offshore Gaming Operators (POGOs) through Executive Order No. 74 in November, Senator Mark Villar, chair of the Committee on Games and Amusements, confirmed that SCBPOs are exempt from this prohibition.
The distinction between SCBPOs and banned operators has been crucial for maintaining investor confidence. PAGCOR’s oversight ensures these companies focus solely on supporting legitimate overseas gaming companies through back-office operations. This contributes to the Philippines’ reputation as a leading destination for business process outsourcing services.
