Date: 15.11.2024

by Adam Dworak

Philippine Offshore Gaming Operators Banned Under Executive Order

President Ferdinand R. Marcos Jr. has enforced a comprehensive ban on Philippine Offshore Gaming Operators (POGOs) through an executive order, rejecting the need for legislative action to implement the measure.

Scope of the Executive Order

Signed on November 5, the executive order prohibits all POGO-related activities and supporting entities, including internet gaming licensees, IT providers, and live streaming services.

The order also suspends new applications and renewals of licenses for offshore gaming operators. Marcos emphasized that the ban covers all POGO-like operations, regardless of whether they fall under the Philippine Amusement and Gaming Corporation (PAGCOR).

“As long as it’s POGO or has a similar license, it’s banned,” Marcos stated.

The government has linked POGOs to issues such as corruption, online scams, and financial crimes, making their eradication a national priority.

Concerns Over Implementation

Senator Risa Hontiveros has raised concerns about possible loopholes in the executive order. She warned that certain arrangements, such as junket agreements within PAGCOR-regulated casinos in special economic zones, might allow offshore gambling to persist.

“While I laud the aims of the executive order… [some things] are not clear,” Hontiveros said, questioning whether operations in casinos such as City of Dreams or Fontana could continue under current frameworks.

Marcos Defends the Ban

In response, Marcos dismissed the need for codifying the ban into law, asserting that the executive order provides a strong framework to eliminate POGOs and prevent their resurgence.

The EO safeguards “national security, maintains public order, upholds the rule of law, protects the safety of its citizens, and ensures the integrity of the social fabric of the nation,” Marcos said in a news release.

The president also pointed to the reputational harm and financial risks posed by POGOs, which he described in his July State of the Nation Address as “havens of corruption and crime.”

Broader Implications

The executive order aligns with efforts to remove the Philippines from a global “grey list” of countries at high risk for money laundering and terrorism financing.

It sets a December 31 deadline for all POGO operations to cease, reinforcing the government’s commitment to restoring investor confidence and enhancing the nation’s appeal as a tourist destination.

Legislative Actions Considered

Despite the EO, Senator Sherwin Gatchalian supports repealing existing POGO tax legislation to prevent any potential revival of offshore gaming.

“We will continue with the law to… repeal the taxation of POGOs,” Gatchalian said, arguing that additional legislative measures would deter future administrations from reinstating POGOs.