The Philippines’ gaming regulator announced on Tuesday its decision to revoke the licenses of offshore gambling firms in compliance with President Ferdinand Marcos Jr’s directive to completely ban the industry. In his State of the Nation address on July 22, Marcos declared the ban on Philippine Offshore Gaming Operators (POGOs), predominantly run by Chinese companies, with a deadline to wind down operations by the end of the year.
Chairman of the state gaming regulator Philippine Amusement and Gaming Corp (PAGCOR), Alejandro Tengco, emphasized the challenge of preventing these firms from operating illegally, highlighting the potential loss of approximately PHP23 billion ($400 million) in annual license fees and taxes from licensed POGOs. There are currently 42 licensed POGOs in the country, employing around 40,000 Filipinos directly and indirectly, along with nearly 23,000 foreign workers as of last year.
Finance Secretary Ralph Recto disclosed plans for the finance and labor ministries to support displaced Filipino workers through safety nets and training programs. Additionally, the Presidential Anti-Organized Crime Commission will continue its crackdown on illegal POGOs involved in criminal activities such as human trafficking and fraud.
The online gaming industry in the Philippines began in 2016 and experienced rapid growth by targeting Chinese customers due to the country’s lenient gaming laws. Prior to the pandemic, the POGO industry, which once included 300 firms, drove demand for real estate, office spaces, and transportation services.
Overall, the government is taking steps to enforce the ban on offshore gambling and address the economic and social implications of the industry’s closure.
