At the recent SiGMA Asia International Summit, a distinguished panel of experts came together to discuss the state of Manila post-pandemic and whether it is the place to be to run a B2B and B2C. Moderating the panel was Jesper Ramskov Jensen, CEO of iGaming Asia. The panel speakers were Brycan Dayao, CCO of Radar Technologies, Patrick Kinghorn, Asia gaming consultant and Alex Leese, CEO of Pronet Gaming.

The first question put to the panel was regarding the workforce potential in Manila. Brycan Dayao commended the Filipino workforce as suitably skilled even for companies operating in non-English speaking regions. He added that this relates not only to customer service, but other departments including finance and IT. Labour costs in Manila are competitive and the Philippine workforce is skilled in all areas. Alex Leese shared his own experience, where the company went through the “daunting process… of looking at a whole range of different Asian countries from Vietnam, Lau, Cambodia. The conclusion that we came to is that Manila offers the One-Stop shop for the roles that we wish to recruit”.

The advantages of a skilled workforce

Patrick Kinghorn referred to the fact that iGaming operators in the Philippines are able to work in a regulated market and referring to the 12K plus attendance at the SiGMA Manila Summit, any operator would be able to find the workforce with the skills required “under one roof”. Jesper added that another option that worked for his company in their efforts to find people with the right skill set has been to collaborate with schools and Higher Education Institutions in the Philippines.

In the Philippines, any operator in the industry is bound to have a 90% Filipino workforce, a regulation put in place by PAGCOR, the nation’s gaming regulator, as part of its nation building efforts. In Kinghorn’s opinion this measure allows the country to create “good jobs and good entry-level jobs where people can learn new skills and rise up the ranks of a foreign company based in the Philippines”.

Alex Leese reiterated that most roles within a B2C company can be filled with an entirely Filipino team. However, he added that the 90% rule may weigh heavy on a B2C operator targeting a specific non-English market outside of the Philippines requiring non-English language skills.

The cost of doing business in the Philippines

Jesper Jensen raised another important issue for operators considering Manila, which is the cost of doing business in the Philippines. Working in a regulated environment has its costs associated with the regulatory framework, and other cost of setting up operations.

The panel was of the opinion that albeit certain operating costs in Manila are higher than other locations in Asia, such as Cambodia, overall, the advantages of operating within a regulated environment override the higher cost. Dayao recounted his experience working in the Cambodian market and the challenge of finding people with the skills required and he concluded that skilled manpower is usually a higher priority than cheaper office space. Leese agreed that there are “other locations in Asia which could be cheaper” but operating in regulated jurisdictions such as Bulgaria or the Philippines in particular is “reassuringly expensive in the sense you can get the skill sets over here and it is the only nation in the Asian region which has a long-term regulatory regime.” Kinghorn added that people recognise the PAGCOR brand and this in turn provides reassurance. He added that in spite of the potential higher cost, it makes sense to operate from the Philippines “because you are then able to operate without fear ….. safely and legally.”

Jensen listed a number of new fees put in place by PAGCOR, to which Kinghorn replied that PAGCOR’s aim is to tackle POGOs operating illegally and “these higher fees are trying to discourage the cowboy operators that are using the POGO license or the POGO brand name to conduct other illicit activities”. Currently, all POGOs are under probation in PAGCOR’s efforts to eradicate illegal activities and they have till September 17th 2023 to reapply for their licence. With Alejandro Tengco at the helm of PAGCOR, Kinghorn said, it “represents a new era for PAGCOR to reinvigorate the market and therefore charging fees that are more representative of other regulated jurisdictions I would say is something that should be of great reassurance to those operators and B2B providers who wish to do things in the correct way.”

Alternative jurisdictions to the Philippines

The panel finally delved into other possible alternatives to setting up business in the Philippines and places mentioned included Cambodia, for its cheaper costs, Brazil, for its efforts in building a regulatory framework for the industry and Thailand. Kinghorn expressed his surprise that “seeing the revenues generated by PAGCOR and the Philippines approach it’s incredible that no-one’s taken a copy and paste approach”.

Looking towards the future, Alex Leese’s perspective is that as a B2B platform provider, he is determined to continue operating from the Philippines and avoid the “hassle” of having to spread the business in different countries. Ultimately, does it still make sense for B2B and B2C companies to operate from the Philippines? The answer seems to be a resounding yes.

SiGMA’s regional summit in Limassol, Cyprus

SiGMA Balkans/CIS is less than two weeks away. It will be held at the City of Dreams, Europe’s first integrated resort from the 04 – 07 September.

Industry operators will be able to connect with leading affiliates and two conference stages will feature a number of high-profile guest speakers. There will also be an expo floor, including the SiGMA Startup Village. So much more is happening in Limassol! Check out all the details here.