The Decline of the Philippine Offshore Gaming Operator (POGO) Industry
The Philippine offshore gaming operator (POGO) industry is nearing its end, following President Ferdinand Marcos Jr.’s decisive announcement in July to outlaw these operations. With a firm deadline set for December 31, 2024, the government has initiated a comprehensive phase-out of this controversial sector. The implications of this decision are far-reaching, affecting not only the economy but also governance and security within the Philippines.
A Dramatic Reduction in Licensed POGOs
The decline in the number of licensed POGOs has been staggering. Alejandro Tengco, the head of the Philippines Amusement and Gaming Corporation (PAGCOR), reported that the number of licensed POGOs has plummeted from nearly 300 in 2019 to just 17 as of December 10, 2024. This significant reduction reflects the government’s commitment to phasing out the industry entirely. Tengco expressed optimism that by the end of the year, there would be no licensed operators left in the country.
However, the situation is complicated by the persistence of unlicensed operations. Secretary Jonvic Remulla of the Department of the Interior and Local Government (DILG) has raised alarms about the potential emergence of "homegrown operations." These underground setups could be established by opportunistic individuals looking to exploit the void left by the official POGO industry.
Governance and Security Challenges Surrounding POGOs
The POGO industry has not only been a source of economic concern but has also raised significant governance and security issues. A recent Senate investigation revealed alarming governance failures that allowed POGOs to flourish in the Philippines. The inquiry uncovered alleged ties between POGOs and Chinese interests, raising red flags about national security. Reports of espionage activities, including the proximity of POGO operations to military bases and sightings of People’s Liberation Army uniforms within POGO compounds, have intensified these concerns.
One particularly troubling case involved Alice Guo, a Chinese national accused of masquerading as a Filipina to secure a mayoral position in Bamban, Tarlac. Guo is alleged to have facilitated a POGO in the area and now faces serious charges, including human trafficking and money laundering. An editorial in the Philippine Inquirer described her actions as emblematic of the broader "failures of governance" associated with the POGO industry, highlighting the urgent need for reform and oversight.
Crackdowns and Deportations Ramp Up
In response to the growing concerns surrounding POGOs, authorities have ramped up their crackdown on suspected operators. The National Bureau of Investigation (NBI) recently apprehended 60 individuals linked to a suspected POGO operation in Davao del Norte, which had relocated from Luzon to evade previous raids. The Presidential Anti-Organized Crime Commission (PAOCC) has also taken significant steps, deporting 187 foreign POGO workers back to Shanghai, underscoring the ongoing enforcement efforts against illegal operations.
Moreover, a collaborative initiative between Chinese and Philippine authorities has led to the repatriation of approximately 360 Chinese nationals involved in offshore gambling activities this year. The Chinese embassy in Manila has welcomed the ban on POGOs, aligning it with China’s strict prohibition of all forms of gambling. This international cooperation highlights the global implications of the POGO industry and the shared interest in curbing illegal gambling activities.
Putting an End to Illegal Operations
The Philippine Amusement and Gaming Corporation (PAGCOR) plays a crucial role in regulating and overseeing gaming operations in the country. Established during Martial Law, PAGCOR was created in response to the proliferation of illegal casinos. Its foundation was solidified under Presidential Decree 1869, known as the PAGCOR Charter, which outlines its mandate to regulate, operate, and license various games of chance, particularly casino gaming.
PAGCOR’s responsibilities extend beyond regulation; it also aims to generate funds for socio-civic and national development initiatives while promoting tourism in the Philippines. In 2007, Republic Act No. 9487 extended PAGCOR’s corporate life by 25 years and introduced amendments that allowed for joint ventures and required local government approval for operational sites. Today, PAGCOR operates nine casinos across the major islands of the Philippines, continuing its dual role as both a regulatory authority and an operator.
As the deadline for the cessation of POGO operations approaches, the Philippine government is taking decisive steps to ensure that illegal gambling activities are curtailed. The focus remains on strengthening governance, enhancing security measures, and protecting the integrity of the nation’s gaming industry.
Source
For further information, refer to the article titled “POGO update: Offshore gaming operations down to 17 as deadline approaches” published by igamingbusiness.com on December 10, 2024.