MANILA, Philippines — Gaming technology firm DFNN Inc. has incorporated a new entity to expand its offshore gaming operations, riding on the rapid growth of this industry.
DFNN’s board authorized the incorporation of Nico Bayan Inc., which will have an authorized capital stock of P15 million. Out of the subscription of DFNN, it will own 100 percent of the outstanding shares of the capital stock of Nico Bayan in the amount of P5 million.
“The incorporation of Nico Bayan is intended to be used as a vehicle for the expansion of its offshore gaming operations,” DFNN said in a disclosure to the Philippine Stock Exchange on Wednesday.
Based on the website of the Philippine Amusement & Gaming Corp. (Pagcor), there are currently 56 Philippine Offshore Gaming Operator (POGO) licensees. DFNN, for its part, holds an existing POGO license.
“We will use it (new vehicle) for the growing POGO space,” DFNN executive vice-chair and executive director Ramon Garcia Jr. said.
“We believe it should conceptually add to our revenue significantly,” he added.
Pagcor hatched the rules on POGO licensing in 2016 to enable the government to capture a greater share of the growing – yet previously unregulated – online gaming pie. This industry has resulted in the influx of workers from mainland China as online gaming mostly targets Chinese clients and thus require Mandarin-speaking support staff.
A POGO refers to an entity that offers and participates in offshore gaming services by providing games to players, taking bets, and paying the winning players. Covered activities include online games of chance through the internet, using a network and software, exclusively for offshore-authorized players who have registered and established an online gaming account. Filipino citizens, even while overseas, are not allowed to play.
The POGO framework also covers service providers that provide the various components of gaming operations, such as the gaming software provider, business outsourcing provider, and content streaming provider. These providers also need to secure a Pagcor license.