Countdown to the End of POGOs in the Philippines

The Philippine offshore gaming operator (POGO) industry is on its final stretch. President Ferdinand Marcos Jr.'s July announcement to outlaw POGOs has set December 31, 2024, as the ultimate deadline for ceasing operations. Since then, significant progress has been made to phase out the controversial industry.

According to Alejandro Tengco, head of the Philippines Amusement and Gaming Corporation (PAGCOR), the number of licensed POGOs has plummeted from nearly 300 in 2019 to just 17 as of December 10, 2024. Tengco expressed confidence that by year’s end, there would be no more licensed operators.

However, unlicensed operations in the Philippines remain a concern. Secretary Jonvic Remulla of the Department of the Interior and Local Government (DILG) cautioned that “homegrown operations” may arise, noting that some opportunistic individuals might attempt to establish underground setups.

Governance and Security Challenges Surrounding POGOs

A recent Senate investigation shed light on the governance failures that allowed POGOs to thrive in the Philippines. The inquiry highlighted alleged ties to Chinese interests, raising concerns about national security. Reports of espionage, including proximity to military bases and sightings of People’s Liberation Army uniforms in POGO compounds, have amplified these fears.

One notable case involved Alice Guo, a Chinese national who allegedly posed as a Filipina to win a mayoral position in Bamban, Tarlac. Guo, accused of facilitating a POGO in the area, faces charges of human trafficking and money laundering. An editorial in the Philippine Inquirer described her actions as emblematic of the “failures of governance” linked to POGOs.

The security implications of POGO activities underscore the need for stringent oversight, as lawmakers push to address the systemic issues that enabled these operations.

Crackdowns and Deportations Ramp Up

Authorities have intensified their crackdown on suspected POGO operators. The National Bureau of Investigation (NBI) recently arrested 60 individuals linked to a suspected POGO operation in Davao del Norte, which had relocated from Luzon to evade earlier raids. The Presidential Anti-Organized Crime Commission (PAOCC) also deported 187 foreign POGO workers to Shanghai, highlighting ongoing enforcement efforts.

Additionally, a collaborative operation between authorities of China and Philippines has resulted in the repatriation of approximately 360 Chinese nationals involved in offshore gambling activities this year. The Chinese embassy in Manila welcomed the ban on POGOs, aligning it with China’s prohibition of all forms of gambling.

Putting an End to Illegal Operations

The Philippine Amusement and Gaming Corporation (PAGCOR) is a government-owned entity under the Office of the President of the Philippines, established during Martial Law in response to the proliferation of illegal casinos.

Created by Presidential Decree (PD) 1067-A, PAGCOR’s foundation was later strengthened and consolidated under PD 1869, also known as the PAGCOR Charter. Its mandate is threefold: to regulate, operate, authorize, and license various games of chance and numbers, particularly casino gaming; to generate funds for socio-civic and national development initiatives; and to promote Philippine tourism.

In 2007, Republic Act No. 9487 extended PAGCOR’s corporate life by 25 years, with the possibility of renewal, while introducing new amendments. These changes allowed PAGCOR to form joint ventures, required local government approval for operational sites, excluded jai-alai from its operations, and clarified its regulatory scope.

Today, PAGCOR operates nine casinos across the country’s major islands, continuing its dual role as a regulatory authority and an operator, aiming to curb illegal gambling and support the nation’s progress.

Source: 

“POGO update: Offshore gaming operations down to 17 as deadline approaches”,  igamingbusiness.com, December 10, 2024.