Text-based wagering games need gambling license, says Pagcor

The Philippine Amusement and Gaming Corp. (Pagcor) will require broadcast companies to secure a gambling license before they can engage in text-based games that involved elements of wagering.

Pagcor chairman and chief executive officer Efraim Genuino disclosed this following the signing of a memorandum of agreement (MOA) with the Department of Trade and Industry (DTI), the National Telecommunications Commission (NTC) and the Movie & Television Review and Classification Board (MTRCB) to protect consumers from abuse in the use of SMS (short messaging service) technology.

Under the MOA, the four government agencies will jointly regulate sales promotions using SMS technology.

Following the signing of the MOA, the four agencies will now draft regulations to clarify gray areas not addressed by present laws.

These include requiring clear mechanics on the participation of contestants/subscribers and on the charges incurred by texting.

The regulations will also clearly define which text-based games might be interactive gambling activities because mobile phone users place their bets through text messages they send to join the contest.

Trade and Industry Secretary Manuel Roxas II said this move would address the consumers’ right to information.

Companies which engage in sales promotions via SMS must give full disclosure of their rules and regulations, limitations, other relevant points and most especially the costs that would be incurred by consumers upon joining the promotions.

The role of the DTI is clearly delineated to review applications for sales promotions and to refer to the Pagcor those which have elements of wagering.

The Pagcor would review all DTI referrals and prohibit sales promotions with wagering schemes.

"The government would also ensure that those engaged in such text-based gambling would have to pay 20 percent of their gross profit to Pagcor," Genuino.

The NTC would provide technical assistance to Pagcor, DTI and MTRCB in handling consumer complaints on sales promotions via SMS, MMS (multi-message service) and other means of communications declared by Pagcor to have gambling or wagering schemes. – Marianne Go