Malacañang’s Directive on Philippine Offshore Gaming Operators: A Closer Look
In a significant move to regulate the gaming industry in the Philippines, Malacañang has issued a reminder to Katrina Ponce Enrile, the administrator and chief executive officer of the Cagayan Economic Zone Authority (CEZA), emphasizing the importance of adhering to the recent ban on Philippine Offshore Gaming Operators (POGOs). This directive comes in the wake of President Ferdinand Marcos Jr.’s announcement during his State of the Nation Address on July 22, 2024, where he declared an immediate ban on POGOs, citing their involvement in various illicit activities.
The Memorandum from Malacañang
On November 5, 2024, Executive Secretary Lucas Bersamin conveyed the memorandum from the President, which reiterated the need for compliance with Republic Act No. 7922, also known as the ‘Cagayan Special Economic Zone Act of 1995.’ The memorandum explicitly instructed Enrile to ensure that the ban on POGOs is enforced in accordance with applicable laws, rules, and regulations. This directive underscores the government’s commitment to curbing illegal gambling activities that have plagued the industry.
CEZA’s Commitment to Compliance
In response to the memorandum, Enrile expressed her commitment to abide by the directive from the Palace. She stated, “I am on my way to Cagayan for relief work. We will abide by the EO that was just released, and I am also a part of the technical working group to stop all illegal offshore activities.” This statement reflects CEZA’s readiness to cooperate with the government’s efforts to eliminate illegal gambling operations and ensure that the economic zone operates within the legal framework.
The Rationale Behind the POGO Ban
During his State of the Nation Address, President Marcos outlined the rationale for the POGO ban, highlighting the alarming trends associated with these operations. He pointed out that POGOs have been linked to serious crimes, including scamming, money laundering, prostitution, human trafficking, kidnapping, torture, and even murder. The government’s decision to ban these operations is rooted in a desire to protect the public and restore order in the gaming sector.
Executive Order No. 74: A Comprehensive Ban
On the same day as the memorandum, President Marcos issued Executive Order No. 74, which formally prohibits POGOs, internet gaming, and other offshore gaming operations in the Philippines. This executive order is comprehensive, stating that the ban encompasses illegal offshore gaming operations, license applications, renewals, and mandates the cessation of operations. The order classifies all POGOs and Internet Gaming Licensees (IGLs) operating without the necessary licenses as illegal gambling entities, reinforcing the government’s crackdown on unlawful activities.
Understanding POGOs and Their Operations
POGOs are entities that provide and participate in offshore gaming services, primarily targeting foreign players through online platforms. These operations include livestreamed electronic casino games, online random number generator games, and online sports betting. The recent executive order clarifies that all existing licenses for POGOs and IGLs will not be renewed or extended, and all operations must cease by December 31, 2024, or earlier.
The Impact on CEZA and Offshore Gaming Licensees
In the wake of the POGO ban, discussions have emerged regarding the implications for CEZA and its offshore gaming licensees. In July 2024, both Katrina Ponce Enrile and her father, Chief Presidential Legal Counsel Juan Ponce Enrile, voiced concerns that the ban should not adversely affect CEZA’s operations. They argued that the foreign iGaming operators licensed by CEZA operate legally and are prohibited from soliciting bets from the Philippines or other jurisdictions where gambling is illegal.
The Enriles’ Defense of CEZA’s Operations
During a hearing before the House Committee on Public Order and Safety, the Enriles made a case for the distinction between POGOs and CEZA’s offshore gaming licensees. They emphasized that CEZA has no POGO licensees and is not involved in POGO-related crimes. Katrina Ponce Enrile highlighted that CEZA has been losing clients since POGO operations were legalized under Executive Order 13, issued by former President Rodrigo Duterte in 2017. This loss of clientele raises concerns about the economic impact on CEZA and the potential for job losses in the region.
The Future of Offshore Gaming in the Philippines
As the government moves forward with the implementation of the POGO ban, the future of offshore gaming in the Philippines remains uncertain. The Enriles have argued for the protection of CEZA’s operations, asserting that their authority to conduct offshore iGaming is enshrined in their charter. This ongoing dialogue reflects the complexities of regulating the gaming industry while ensuring that legitimate operations can thrive without being overshadowed by illegal activities.
The government’s decisive action against POGOs marks a pivotal moment in the Philippines’ approach to gambling regulation, aiming to create a safer environment for its citizens while navigating the challenges posed by the global gaming landscape.