Olongapo Telecom & Information Technology

Thursday, April 14, 2005

We'll regulate, not engage in, mobile phone gambling—Pagcor

Posted 02:57am (Mla time) April 14, 2005
By Erwin Lemuel Oliva
INQ7.net

THE PHILIPPINE Amusement and Gaming Corp. (Pagcor) denied on Wednesday that it will be operating a mobile gambling service via cellular phones.
While Pagcor has asked the National Telecommunications Commission (NTC) to grant them a specific code or special access number for a supposed text-based betting and gambling service, officials insisted that this was meant only to allow the government-owned and controlled corporation to "regulate and control" existing text-based games of chance, deemed as gambling, in order to prevent minors from engaging in such activities.

"We have no intention of promoting or introducing new text games,"
Pagcor said in a statement during Wednesday's public hearing at the
NTC.

"It is the stand of Pagcor that text games are games of chance. As the sole authority to regulate all games of chance in the country, these games therefore fall under Pagcor's jurisdiction," the agency added.

In an interview with INQ7.net after the NTC public hearing, Eduardo King, managing head Pagcor’s PR and advertising department, tried to clarify the public misconception that Pagcor itself will be operating mobile phone-based gambling services.

"There are so many text-based games of chance right now. Some are treading on gambling. So there has to be a system to determine whether a certain game of chance is gambling or not. Initially, all these [games of chance] have to apply with the Department of Trade and Industry. If it is deemed a sales promo, DTI gives the seal of approval. However, if it is deemed gambling, then Pagcor will step in," King said.

King stressed that Pagcor is "here to regulate text-based games that are and will be offered by content providers."

For a game of chance to be considered gambling, he said, three elements must be present: a fee to play the game or to wager, a chance to win, and a cash prize.

The Pagcor official stressed that the application for special access codes is part of an inter-agency agreement to regulate and monitor existing text games offered by telecommunication companies and content providers.

During a power point presentation, however, Pagcor indicated that it was requesting NTC for the special access numbers with the objective of ensuring that "government receives its just and rightful share of the profit from text games."

Pagcor also pointed out that it intends especially to protect the public, minors in particular, from numerous text-based scams and fraudulent games of chance.

"It is our mandate to centralize and integrate the rights authority to operate and conduct games of chance," while exploring new revenue opportunities, Pagcor added in its presentation.

The agency added that it already has set up an Internet and mobile intermediation platform through which mobile phone games will be monitored and regulated.

It also disclosed that it will require participants of mobile phone gambling services to register with the agency and provide personal information via text messaging. Upon confirmation, the agency will require each person to present at least three valid identifications to ascertain identity and ensure player security.

On top of that, Pagcor will offer pre-paid cards to be sold only to adults at different peso denominations, starting from 500 pesos up to 5,000 pesos. "Such high value will discourage people with limited disposable income from gambling," the agency added.

The Pagcor system illustrated at the NTC hearing is purportedly meant to handle registration as well as the filtering of minors and unwanted players from the mobile phone gambling service.

This system, Pagcor said, will eliminate scam and fraud because the public is now aware of a legitimate mobile phone-based gambling service.

Curiously, it is also requesting NTC for a list of all the value-added service providers in the country.

Globe senior vice president for corporate and regulatory affairs
Rodolfo Salalima rejected Pagcor's reasons for asking the NTC for the special access numbers at the hearing.

"[Pagcor is] saying that no new text games will be introduced. But in the end, they say they will look for ways to earn more revenues? Are you using these codes to monitor text games or are you using it to introduce new text games?" Salalima wanted to know.

The Globe lawyer argued that operators are in a better position than Pagcor to regulate text-based games of chance.

"If you find any text games that are deemed gambling, tell us, and we will take it down," he added. "Have you found any operators engaged in gambling? We're not engaged in it. I will personally tell management to stop it if you find one," Salalima said.

The Globe executive stressed that Pagcor's objectives are ambiguous.

"If you're not going to engage in text gambling, then why screen minors? Minors could easily get a proxy to play for them. If you're simply going to monitor and regulate this activity, then let's not play with words," Salalima said.

"Globe is distressed about Pagcor's statements. It's our policy not to
engage in gambling. Nasunog na kami d'yan (We already got in trouble because of this). But if you're going to lease our lines to offer this service, you have to enter a commercial relationship or agreement with us. Gambling is not a public service," the Globe executive pursued.

Salalima said that Globe and other local mobile phone operators have been through many congressional investigations after Pagcor complained that they were operating an alleged games of chance, which should be regulated by the government owned and controlled corporation.

The Wednesday's hearing was also attended by representatives from the Department of Trade and Industry, Commission on Higher Education, Department of Education, National Consumers Association Inc., HatchAsia, and some other service and content providers.

The NTC has asked all stakeholders in the issue to submit their position papers and presentations to the agency within 15 days. After this period, the agency will determine if it needs to hold another public hearing before it makes a decision on Pagcor's request for the special access numbers

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