Ban on Offshore Gaming in the Philippines to Impact Thousands of Workers

Thousands of Workers Affected by the Ban

The ban on the formerly named Philippine Offshore Gaming Operators (POGOs) will have significant consequences for local employment, with nearly 27,000 Filipinos expected to be directly impacted.

Labor Secretary Bienvenido Laguesma reported that his office had profiled 26,996 workers employed by 54 Internet Gaming Licensees (IGLs) and related service providers. These workers are spread across key regions, including Metro Manila, Calabarzon, Central Luzon, and Central Visayas.

During a recent press conference, Secretary Laguesma outlined the government’s efforts to assist displaced workers, stating, “Because of this profiling, we will now be able to determine what form of intervention we will provide.”

The Department of Labor has scheduled a job fair for early October, aimed at helping affected workers transition to new industries. The focus will be on offering services that align with workers’ skills and preferences, whether they choose to shift to other sectors or start their own businesses.

“We hope that we can offer them the necessary services based on their skills, as well as their preferences regarding which industry they would like to move to or if they want to start their own livelihood programmes,” Mr Laguesma said.

In addition to the local workforce, an estimated 20,000 foreign nationals working for offshore gaming operators will be affected by the ban. The Bureau of Immigration has confirmed that foreign workers will have their work permits revoked and must leave the country within 60 days of their employer ceasing operations.

Limited Financial Fallout Expected

Despite the significant workforce implications, the Philippine Gaming and Amusement Corporation (Pagcor) has downplayed the financial effects of the ban on the broader gaming sector. In comments made to GGRAsia, Pagcor stated that offshore gaming operations represent less than 5% of the country’s total gross gaming revenue, suggesting that the overall impact on the industry will be minimal.

The ban, announced by President Ferdinand Marcos Jr. on July 22, 2023, will take full effect by the end of the year. There will be no exceptions to the rule, and all offshore gaming operators must cease their activities in the country, marking a significant policy shift aimed at addressing concerns related to the online gaming industry.