Philippine government targets offshore gambling. Executive order to ban POGOs

President Marcos Signals End of POGOs

The announcement to ban POGOs came during President Ferdinand Marcos Jr.’s July 2024 State of the Nation Address, where he made a decisive statement: “Effective today, all POGOs are banned.”

The forthcoming executive order will formalize this ban, with enforcement handled by the Presidential Anti-Organized Crime Commission (PAOCC) and the Philippine Amusement and Gaming Corporation (PAGCOR). The ban reflects the government’s stance on curbing the illegal activities linked to offshore gambling operators, which have sparked public outcry and legislative action.

As authorities prepare for the ban, a technical working group is being established to assess how the new regulations will impact different sectors. This includes evaluating whether Business Process Outsourcing (BPO) firms that provide services to offshore gaming operators will be affected. While the details of the ban’s enforcement are still being worked out, the goal is to ensure that all associated activities, including support services, comply with the new legal framework.

Senator Gatchalian Pushes for Permanent Ban

Senator Sherwin Gatchalian has been at the forefront of efforts to permanently outlaw POGO operations. Although the executive order will enact the immediate ban, Gatchalian is advocating for a law that institutionalizes the prohibition. He seeks to prevent future administrations from reversing the decision by clearly defining POGO operations and related activities within the legal framework.

“We will clearly define what is POGO, what are the businesses associated with POGOs […] We will include all that in the law so that it will be institutionalized,” Gatchalian explained during a Senate Committee hearing.

In addition, the senator has voiced concerns over the regulations governing Philippines Inland Gaming Operations (PIGOs), which serve local bettors. Gatchalian believes that PIGOs could present similar risks, particularly regarding minors and fraudulent accounts, and has called for stricter controls to prevent money laundering and other illegal activities.

The call to ban POGOs follows a series of high-profile criminal cases linked to the industry. One notable incident involved the arrest of Bamban Mayor Alice Guo, a Chinese national accused of operating illegal POGO facilities. Guo faces charges related to money laundering and human trafficking. Furthermore, investigations continue into allegations of a mass grave tied to a POGO operation in Pampanga, raising further alarm about the criminal underbelly of offshore gambling.

Impact on the Gambling Industry

While the executive order is expected to significantly reduce offshore gaming operations, the government is aware of the economic impact the ban could have. POGOs have contributed considerable revenue to the Philippines in recent years, but the administration remains focused on protecting Filipino citizens from the criminal activities linked to these operations.

Authorities are also working to address potential loopholes in other gambling sectors, such as PIGOs, to ensure a cleaner, more regulated gaming environment.