CEZA together with First Cagayan Leisure and Resort Corporation and North Cagayan Gaming & Amusement Corporation are no longer issuing licenses.
Foreign companies can obtain licenses in the Philippines to operate online gaming/e-gaming, online casino and sports betting businesses. A 100% foreign owned company can register and operate an online gaming business in the Philippines as a domestic corporation or by opening a branch office licensed by the SEC to transact business in the Philippines.
Officially, the only area where online gaming licenses are valid is the Cagayan Special Economic Zone (CEZA), but many operations are actually situated in Metro Manila due to the lack of the necessary infrastructure at the time the first licenses were awarded.
Incentives for CEZA Registered Enterprises:
• 4-6 years income tax holiday;
• Special tax rate of 5% of gross income in lieu of all local and national taxes;
• Tax credits for foreign corporations;
• Tax and duty free importation of articles, raw materials, capital goods, equipment and consumer items;
• Permanent resident status for foreign investors and immediate family (must maintain not less than USD150, 000 capital);
• Other applicable incentives under Omnibus Investment Code of 1987:
o Multiple entry visa, valid for a period of two years;
o Tax treatment of merchandise in the Zone;
o Tax credits;
o Additional deduction for labor expense;
o Exemption from local taxes and licenses;
o Exemption from Contractor’s Tax;
o Exemption from Wharfage Dues and any Export Tax, Duty, Impost and Fee on non-traditional export products
Full License (includes E-Casino and Sports Book)
New Application
The fees for a new application are USD40,000 (includes a non-refundable USD15,000 deposit payable upon submission of application) the balance of USD25,000 is to be paid upon issuance of the provisional of official license.
Gaming Levy: 2% of Gross Win/month from e-casino operations (on top of the special CEZA tax rate) (Gross Win = Turnover – Player wins – Merchant Discount)
USD48,000 /annum for Sports book operations payable upon the issuance of the provisional or official license.
Annual Renewal Fees:
USD40,000 of which USD15,000 may be offset against the gaming levy payable each year.
Gaming Levy: 2% of Gross Win/month from e-casino operations (on top of the special CEZA tax rate) (Gross Win = Turnover – Player wins – Merchant Discount)
USD60,000 / annum for Sports book operations payable upon the issuance of the provisional or official license.
Restrictive Interactive Gaming License (Sports Betting):
New Application
The fee for a new application is USD26,000 upon submission of the application, of which USD18,000 is refundable if the application is unsuccessful.
USD2, 700 – Probity Cost per application chargeable to the applicant.
USD48,000 /annum – Restrictive Interactive Gaming Tax payable upon the issuance of the provisional license or official license.
Annual Renewal Fees for Restrictive Interactive Gaming License (Sports Betting):
USD15,000 – Renewal fee for Restrictive Interactive Gaming License payable upon submission of the documentary requirements necessary for renewal
USD60,000 /-annum – Restrictive Interactive Gaming Tax payable upon the renewal of the license.
Note: The fee for each additional Sporting Event is USD2,000 (per year)
Contact Dayanan Philippines Business Consultants for assistance with your application for registration of an online casino license.
About David Elefant
Philippines business consultant specializing in assisting companies setup their operations in the Philippines.
- Find more about me on:
