Philippines Explores Regulated Online Gaming Alternatives
Following President Ferdinand Marcos Jr.’s decision to impose a total ban on Philippine Offshore Gaming Operators (POGOs), the Philippine Amusement and Gaming Corporation (PAGCOR) is considering implementing a regulated version of online gaming. This move aims to provide significant employment opportunities and create new revenue streams for the government.
Addressing Issues with POGOs
In his State of the Nation Address on July 22, President Marcos highlighted the various problems associated with POGOs, including ties to organized crime and other social issues.
This decision led to the expulsion of 20,000 foreign workers from the Philippines.
PAGCOR chairman and CEO Al Tengco discussed the potential for legalizing online gambling during a recent House of Representatives meeting, expressing hope that the industry could evolve and eliminate the systemic issues that plagued POGOs.
Government’s Optimistic Outlook
Northern Samar 1st District Representative Paul Daza also expressed optimism about the future of online gambling in the Philippines.
He encouraged the government to learn from its experience with POGOs and create a safer, better-regulated alternative.
Daza compared POGOs to software, suggesting that an improved version could benefit the economy while addressing past issues.
Steps Towards Regulation
Tengco noted that the government had already taken steps towards regulating online gambling by reducing the number of POGO licensees from 298 to 43 compliant operators.
These legal operators were conducting legitimate business, contributing to government revenue, and providing employment opportunities.
Balancing Economic and Social Interests
While President Marcos’s ban received significant support, concerns about potential revenue loss and job cuts remain. Most POGO operations functioned in a regulatory grey zone and contributed less than 1% of the country’s GDP.
The National Economic and Development Authority (NEDA) reported that POGOs had minimal economic impact.
The ongoing discussions reflect a broader effort to balance economic interests with social responsibilities.
The aim is to create a more sustainable and ethically managed online gaming environment in the Philippines.
President Marcos’s ban is seen as an opportunity to restart and carefully assess the implementation of online gambling within the country’s broader economy, following the example of other successful jurisdictions.
