Despite the implementation of stricter regulations by the regulator, the CEO of Winn Tech Inc., Wilson Fang, maintains that the offshore gaming industry in the Philippines still offers immense opportunities. In a recent interview, he expressed that the updated regulations for the country’s offshore gaming industry enhance transparency and regulatory compliance. Fang considers these new measures essential for the continued growth of the industry.
His company, Winn Tech, is a pioneer in providing remote slot solutions under the country’s Remote Play Operations and has been accredited by PAGCOR since last year. The CEO expressed his initial motivation for starting the company as a need to cater to a specific market in need of a product with enhanced integrity.
As of January 2024, the company has already joined forces with four casinos, including Rizal Park Hotel & Casino, D’Height Casino, Heritage Casino, and Royce Hotel & Casino in the Philippines. The company employs a Remote Play Slot Machine (RPSM) system that boasts clients across South & North East Asia, Europe, and Latin America.
Winn Tech operates on an Offline-to-Online (O2O) model, which stands apart from traditional online gaming. The company uses physical machines sourced from lab-tested slot machine manufacturers, which can be managed via gadgets or smartphones. As part of his future business plans, Fang hopes to increase the available Remote Slot machines to 1,000 by the second quarter of 2024.
Regarding growth projections, Fang stated that while the standard slot machines make about $350 daily per unit, they expect to increase this to approximately $450 by boosting machine utilization from 65% to 82%. Fang underscored the role played by PAGCOR in providing a stable and reliable regulatory environment.
The CEO foresees the Philippines as potentially the most significant gaming growth market this year. The current Remote Play license scheme allows the country’s gaming industry to outpace ASEAN countries through the adoption of innovative approaches and the continued development of the online sphere.
Despite these opportunities, Fang also acknowledged the challenges faced by Winn Tech. He mentioned the presence of illegal slot machine operations in SEA countries, which can offer higher player returns by evading tax laws and other local regulations, thereby creating unfair competition. Fang also noted that the high marketing costs of offshore operations have led the company to request a tax reduction from PAGCOR.
The Philippine government collected around 8.8 billion PHP ($160.78 million) in tax payments from offshore gaming operators (POGOs) in 2022. This total was divided between POGO tax payments of about 4.35 billion PHP ($79.48 million), and gaming taxes amounting to approximately 3.65 billion PHP ($66.69 million).
Looking forward, Winn Tech is keen on capitalizing on the expected surge in business. The company aims to provide a product of enhanced integrity that fills the gap seen in some online gaming sectors and potentially make efficient use of idle areas in land-based casinos. The company sees itself as a future-oriented partner in the gaming industry.
