TLDR
- Philippine President Ferdinand Marcos Jr. has ordered the shutdown of offshore gaming operators (POGOs)
- POGOs have been linked to various criminal activities including scams, human trafficking, and money laundering
- The ban will affect over 400 licensed and unlicensed outfits employing around 40,000 people
- This move marks a shift from the previous administration’s more lenient approach to POGOs
- The ban is seen as potentially distancing the Philippines from China amid ongoing territorial disputes
Philippine President Ferdinand Marcos Jr. has announced an immediate ban on Philippine Offshore Gaming Operators (POGOs). This decision comes as a response to growing concerns over the industry’s links to various criminal activities.
POGOs, which primarily cater to players in mainland China where gambling is illegal, have operated in the Philippines since 2016. While they have brought in substantial revenue, estimated at 166.5 billion pesos ($2.9 billion) annually, they have also been associated with a range of illegal activities.
During his annual address to parliament, President Marcos called for an end to the “desecration of our country.” He stated,
“Disguising as legitimate entities, their operations have ventured into illicit areas furthest from gaming such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder.”
The POGO industry comprises over 400 licensed and unlicensed online casinos, employing around 40,000 people directly and indirectly. The Philippine gaming regulator has been instructed to cancel POGO licenses and wind down the sector by the end of the year.
This ban marks a significant departure from the policies of Marcos’ predecessor, Rodrigo Duterte, who had pursued friendly ties with China and allowed POGOs to flourish. The move is seen by some analysts as an attempt to distance the Philippines from China, especially given the ongoing territorial disputes in the South China Sea.
The decision to ban POGOs comes after several high-profile incidents that brought the industry’s criminal connections to national attention. In one case, a POGO in a small town was found to be a front for a scam center. The town’s mayor, Alice Guo, is currently accused of being a spy for China and is believed to be in hiding.
POGOs have also been linked to clandestine hospitals offering services to fugitives and scam center workers, including plastic surgery to help them evade arrest. These revelations have intensified public concern about the industry’s impact on national security and social order.
The ban has been welcomed by various sectors of Philippine society. Trade Secretary Alferdo Pascual told local media that the move would make the country “more attractive to those who are seeking leisure… because Pogo creates a bad impression, resulting in violence.” George Barcelon, chairman of the Philippine Chamber of Commerce and Industry, expressed support for the ban, stating that POGOs bring “the kind of people we don’t want” and “endanger the moral fiber of our nation.”
However, the shutdown of POGOs is likely to have significant economic implications. While the industry’s revenue is substantial, government estimates suggest its economic costs, at 266 billion pesos annually, outweigh its benefits. The challenge now lies in finding alternative employment for the thousands of workers who will be displaced by the ban.
The Chinese government, which has been cracking down on cross-border gambling, is expected to welcome this move. In March, the Chinese embassy in Manila had appealed to the Philippines to ban POGOs “to root out this social ill.” China’s embassy reported assisting Philippine authorities in shutting down five offshore gambling centers and repatriating nearly 1,000 Chinese citizens over the past year.
This ban on POGOs is part of a broader effort by the Marcos administration to address various social and economic issues in the Philippines. In his address, Marcos also outlined plans to tackle rising food and electricity costs, poverty, and low wages. He emphasized that his administration’s approach to the drug problem would be a “bloodless war,” contrasting it with the controversial anti-drug campaign of his predecessor.
As the Philippines moves to implement this ban, the government faces the challenge of effectively dismantling the POGO industry while mitigating its economic impact. The success of this policy will depend on the government’s ability to enforce the ban, provide alternative employment opportunities, and manage potential diplomatic implications, particularly with China.
