Game on: Navigating e-sports regulations in the Philippines

Electronic sports (e-sports) in the Philippines has seen rapid growth in the past decade, primarily driven by technological advancements, better internet infrastructure, and the younger population’s enthusiasm for competitive gaming.

The pandemic further accelerated this phenomenon as people turned to virtual platforms for entertainment and social engagement when traditional sports and events were paused.

Ever since, e-sports has evolved not only as a hobby or source of entertainment, but also professional sport, with a source of income for players and organisers. In 2019, e-sports became an official medal event during the Southeast Asian Games, marking a significant step in its recognition on the international stage within a multi-sport competition.

The Philippines is considered a “mobile first” nation in e-sports, as more players access available games via mobile phones compared to desktop computers. This trend is attributed to the accessibility and lower barriers to entry associated with mobile gaming.

The country actively embraces and encourages the industry’s growth and has fostered a generally supportive environment for players, organisers
and investors alike. Notably, there are limited regulations governing e-sports in the Philippines.

As the industry continues to grow, here is a summary of the regulatory landscape and legal requirements relevant to the sector, particularly regarding licensing and compliance.

Defining electronic gaming

Electronic gaming in the Philippines can refer to two things: (1) electronic gaming as defined by the Philippine Amusement and Gaming Corporation (PAGCOR); or (2) electronic gaming relating to e-sports.

The PAGCOR defines electronic gaming as games of chance accessible through an electronic gaming platform, offered in onsite operations of various PAGCOR-licensed gaming venues along with the online operation of their respective online gaming platforms. This includes sports betting, specialty games, electronic bingo games, electronic casino games, and online poker games.

In addition to the PAGCOR, authorities in special economic zones in the country play a role in regulating electronic gaming within their jurisdictions. Each of these bodies is empowered to oversee gaming activities within their areas, providing a distinct framework that exists outside of the PAGCOR’s regulatory authority.

Meanwhile, electronic gaming can also mean activities known as e-sports, which include “all professional electronic sports or competitive video games, including real-time strategy, fighting, first-person shooter (FPS), multiplayer online battle arena (MOBA), arcade games and other genres, where players or teams compete using computers or other electronic gadgets connected to the internet, local area network or other electronic systems for prize money and/or other compensation”.

Regulatory landscape

The Games and Amusements Board (GAB) is responsible for implementing and enforcing rules and regulations governing the conduct of all professional sports and games in the Philippines.

In 2017, the GAB recognised e-sports as one of the professional activities falling under its regulation and supervision. The GAB acknowledged the need to supervise and regulate e-sports activities to protect the health and welfare of gamers, and enforce the responsibilities of organisers, the public and the government.

Similar to traditional sports, e-sports activities are vulnerable to game-fixing, fraud and potential breach of contracts, which the GAB aims to prevent.

The GAB issued Resolution No. 2017-21, series of 2017, on the Guidelines Governing the Conduct of Electronic Sports in the Philippines. This was subsequently amended by GAB Resolution No. 2018-15, series of 2018, on the Amended Rules and Regulations Governing Professional Electronic Sports in the Philippines (e-sports rules).

The e-sports rules apply to all professional electronic sports, including tournaments or competitions conducted for profit by promoters, operators, owners, leagues, foundations or athletic societies. A tournament or competition is presumed to be conducted for profit if it has gate entry fees, television coverage, paid advertisements or sponsors.

However, the following events are excluded from coverage of the e-sports rules:

1. Those held by or under the auspices of national sports associations, duly recognised by the Philippine Olympic Committee, solely for the development of the national training pool;
2. Those held by schools, colleges and universities for the health and sports development of their students, or by athletic associations and organisations of schools, colleges and universities participated in solely by bona fide students of the member schools, colleges and universities; and
3. Those that are “open to all”, or can be participated in by enthusiasts and/or the general public, including qualifiers or elimination rounds/phases.

As mentioned, the GAB supervises professional e-sports in the Philippines, including appointing officials or personnel for professional e-sports events. The GAB also has the power to order the suspension of any tournament or competition in cases of violation or non-compliance with the e-sports rules and any other applicable laws, rules or regulations promulgated relative to professional e-sports.

Licences, permits and obligations

The e-sports rules require all persons, entities or associations connected with, engaged in, or participating in the conduct or operation of professional e-sports to obtain the appropriate licence from the GAB before they may engage in professional e-sports activities in the Philippines.

The rules also provide for licences for different types of personnel involved in e-sports including promoters/organisers, team managers, team trainers/coaches, security officers/marshalls, medical officers, liaison officers, analysts and casters. Each of these individuals must pay the corresponding licence fees and submit the documentary requirements to the GAB.

GAB-issued licences are generally valid for one year. Additionally, the guidelines mandate that no tournament, competition or professional e-sports game may take place without a permit issued by the GAB. The promoter of the event is responsible for securing this permit, which requires an application with the GAB at least 10 days prior to the start of the event.

Notably, the e-sports rules identified the following responsibilities of promoters:

1. to ensure peace and order are maintained and that the rules and regulations are properly observed;
2. to prevent and stop any act of cheating, game-fixing or inappropriate influence on the conduct, progress or result of the tournament or competition;
3. to report any findings of actions that may compromise the integrity of the game; and
4. to ensure that all contracts or agreements are faithfully observed and fulfilled.

Strengthening the industry

As of now, the e-sports rules remain the only regulation governing the e-sports industry in the Philippines. While this provides a structured framework for licensing relevant individuals and personnel involved in professional e-sports events, the rules do not address other relevant topics such as player rights and tournament oversight.

As the industry continues to grow rapidly, the existing regulatory framework may show its limitations. For many years, some legislators have sought to pass legislation that will create a dedicated government body to oversee the e-sports industry.

In the current 19th Congress, several bills are pending, including Senate Bill No. 2121 and House Bill No. 5401, aiming to establish and organise a Philippine Electronic Sports Commission, and House Bill No. 7411, which seek to provide a charter for e-sports gamers.

However, up until now, there are no substantial developments regarding the status of pending legislation.

Nonetheless, policymakers have expressed their support for stronger regulations for all kinds of electronic gaming, including e-sports, to prevent the proliferation of money laundering, human trafficking and other crimes, as seen in the case of Philippine Offshore Gaming Operators under the PAGCOR’s regulatory authority.

More stringent and comprehensive regulations should be implemented to guide the e-sports industry’s evolution and to ensure the protection of all players, organisers and other personnel involved in its growth.

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