The gaming regulator of the Philippines announced on Tuesday its decision to revoke the licenses of offshore gambling companies and collaborate with law enforcement agencies to enforce President Ferdinand Marcos Jr.’s directive for a complete ban on the industry.
During his State of the Nation address on Monday, Marcos declared the prohibition of Philippine Offshore Gaming Operators (POGOs), a sector largely controlled by Chinese companies, and instructed the regulator to phase out the industry by the year’s end.
Alejandro Tengco, Chairman of the state gaming regulatory body Philippine Amusement and Gaming Corp (PAGCOR), emphasized the need for law enforcement to prevent these companies from operating in secret, noting that the government could lose approximately 23 billion PHP (US$400 million) in annual license fees and taxes from licensed POGOs.
According to PAGCOR, there are currently 42 licensed POGOs in the country, directly and indirectly employing about 40,000 Filipinos, with nearly 23,000 foreign workers in the industry as of the end of last year.
Finance Secretary Ralph Recto disclosed that the finance and labor departments would assist displaced Filipino workers through safety nets and training programs.
Simultaneously, the Presidential Anti-Organized Crime Commission indicated that a separate crackdown on hundreds of illegal POGOs, harboring fraudulent activities such as human trafficking and torture, would persist.
The online gaming sector emerged in the Philippines in 2016 and experienced substantial growth as operators leveraged the nation’s permissive gambling regulations to target Chinese customers, where gambling is prohibited.
The POGO industry, at its peak before the pandemic, involved 300 companies and drove demand for apartments, offices, and transportation services.
