The Closure of the Largest POGO Facility in the Philippines: A New Era Begins
The Philippine government has taken a significant step in its ongoing campaign to regulate the gaming industry by officially shutting down the largest Philippine Offshore Gaming Operator (POGO) facility located in Kawit, Cavite. This closure is part of a broader initiative mandated by Executive Order 74, signed by President Ferdinand Marcos Jr., which aims to end all offshore gaming operations in the country by December 31, 2024.
A Ceremonial Closure
The ceremonial closure of the sprawling 33-hectare compound, which previously operated as a resort named Covelandia, was led by Interior Secretary Jonvic Remulla, PAGCOR Chairman Alejandro Tengco, PAOCC Executive Director Undersecretary Gilbert Cruz, and PNP Chief Gen. Rommel Francisco Marbil. Remulla emphasized that this directive is a reflection of the government’s commitment to maintaining public order and addressing the various concerns associated with the POGO industry. By November 30, all operations at the facility had ceased, leaving no power supply or business activity on the premises.
The Impact of the Shutdown
The Covelandia hub was a significant player in the POGO landscape, housing 57 buildings and employing around 30,000 workers, half of whom were Filipinos. The complex featured dormitories, gaming hubs, restaurants, and various amenities designed to support its workforce. The closure not only marks the end of a major employment source but also signifies a shift in the government’s approach to managing the gaming sector.
Addressing Industry Concerns
The closure of POGO facilities, including Covelandia, aligns with the administration’s efforts to combat illegal activities often associated with the industry, such as money laundering, human trafficking, and organized crime. Remulla highlighted the importance of repurposing these facilities to generate economic benefits for local communities, stating, “The government is determined to repurpose these facilities to better serve the public and contribute to the national economy.”
PAGCOR’s Alejandro Tengco echoed this sentiment, emphasizing the agency’s commitment to the President’s directive. While the ban on POGO operations is expected to result in a revenue loss of approximately PHP 20 billion, Tengco expressed optimism that new gaming licenses could help offset these losses, indicating a potential shift in the regulatory landscape.
Vigilance Against Illegal Operations
Although major POGO hubs have been officially shut down, authorities remain vigilant against smaller, illegal operations that continue to operate under the radar. Undersecretary Gilbert Cruz revealed that around 100 guerrilla POGO operations have been identified across the country. The PAOCC, in collaboration with local governments and the Philippine National Police (PNP), is intensifying efforts to locate and dismantle these clandestine operations.
Cruz noted that indicators such as 24-hour lighting, frequent food deliveries, and excessive internet installations are being monitored as red flags for concealed activities. PNP Chief Gen. Marbil assured the public of law enforcement’s readiness to enforce the ban and address security concerns, stating, “We have Task Force Skimmer composed of the Anti-Cybercrime Group, and we are closely monitoring operations involving foreign nationals.”
A Historic Shift in the Gaming Landscape
The shutdown of the POGO industry in the Philippines marks a historic shift in the country’s regulatory landscape. Initially established as a promising sector for economic growth, the industry has faced increasing scrutiny due to its connections to crime and exploitation. The decline of the POGO sector, which once thrived and employed thousands while generating substantial revenue, reflects changing governmental priorities.
As the government focuses on repurposing these facilities for community benefit, stakeholders are left to ponder the next steps in reshaping the nation’s gaming and regulatory policies. The closure of Covelandia and other POGO facilities signals a new chapter in the Philippines’ approach to gaming, one that prioritizes public safety and community welfare over unchecked economic gain.