Philippines to Shut Down Remaining POGOs Amid Allegations of Criminal Activity

Coordinated Shutdown of POGOs

The DOJ, in collaboration with the Philippine Amusement and Gaming Corporation (Pagcor), the Presidential Anti-Organized Crime Commission, and the Bureau of Immigration, has established a specialized task force to oversee the closure of POGOs.

This task force aims to ensure compliance with the government’s directive and phase out all remaining operators by the end of the year.

Impact on Workers

To support the approximately 20,000 Filipino workers employed by POGOs, the Department of Labor and Employment is stepping in to help them transition to new job opportunities.

Meanwhile, foreign workers associated with POGO operations are expected to arrange their return to their home countries.

This move seeks to mitigate the economic impact of the shutdown on local workers while maintaining adherence to the government’s mandate.

The Rise and Fall of POGOs

At its height in 2019, the POGO industry boasted over 300 operators and generated significant revenue for the Philippine economy, contributing around ₱166.49 billion annually.

However, despite the economic gains, allegations of crime—including kidnapping and human trafficking—have damaged the industry’s reputation.

Recent investigations revealed further illegal operations, prompting the DOJ to take decisive action.

Secretary of Finance Ralph Recto estimated the total economic cost of POGO-related activities at ₱265.74 billion, resulting in a net annual loss of ₱99.52 billion.

Moreover, Recto emphasized the unquantifiable social costs, which have severely impacted victims of criminal activity.

Following these revelations, President Marcos called for an end to all POGO operations, legitimate or not.

Compliance and Future Guidelines

In the DOJ’s recent statement, it was confirmed that the 41 remaining POGOs intend to comply with President Marcos’s directive to cease operations.

The task force will develop comprehensive guidelines to ensure the full enforcement of this ban by the end of the year, while also safeguarding the welfare of the affected workforce.