At long last, the end is in sight for POGOs

AFTER years of reluctance, mainly on the part of gambling regulator Philippine Amusement and Gaming Corp. (Pagcor), it finally seems the government is serious about ridding the country of the ills associated with the so-called Philippine offshore gaming operators (POGOs), and perhaps other equally problematic forms of online gambling as well. The move is long overdue, but no less welcome for being late.

Earlier this week, a bill in Congress (House Bill 5082) that would decisively ban POGOs once and for all was approved with little resistance by the House Committee on Games and Amusements. The committee likewise approved a resolution (House Resolution 1197) urging Pagcor to ban the remaining POGOs on its own initiative, regardless of the pending bill that would do so. Both measures will now proceed to the House floor for plenary debate.

POGOs first made their appearance in the Philippines in 2016 and were mostly funded, managed and staffed by Chinese — at one time, there were as many as 300,000 Chinese POGO workers in the country — as the primary purpose of the business was to provide a means for the gambling-hungry Chinese market to sidestep China’s near-total ban on any form of gambling. The introduction and expansion of the POGO sector in the Philippines have led to the growth of other forms of online gaming, or e-gaming, such as e-sabong (online gambling on cockfights), e-bingo and sports betting.

Even though the POGO business was touted by Pagcor and other advocates as a potentially valuable source of tax revenue and jobs for Filipinos, it became apparent almost immediately that those supposed benefits were more than offset by the problems it created. POGOs and similar e-gaming businesses have become convenient vehicles for criminal activity, including money laundering, various kinds of online fraud and human trafficking. The business has also been associated with increases in violent crimes such as robberies and kidnappings and increases in problems associated with gambling addiction. The rapid influx of POGO workers from China also caused chaos for a time in the housing and business property markets, especially in Metro Manila, where most of the activity was centered.

Pagcor has tried to “clean up” the POGO business, rebranding them as “internet gaming licensees” (IGLs) and reviewing the eligibility of remaining businesses to continue to be licensed. However, this has not had an appreciable positive impact on the sector’s conduct or the collateral social damage it causes. In the aforementioned committee hearing, Pagcor stressed that criminal activity has been reduced, but this seems to be a consequence of the number of POGO businesses being reduced from more than 200 in 2019 to about 75 as of the end of last year, more than anything else.

An indication that POGOs and other e-gaming establishments would likely never be “reformed” was seen earlier this week as well, when a thoroughly annoyed Mayor Victor Ma. Regis “Vico” Sotto of Pasig City ordered the remaining establishments there, at least 18 of them, to be immediately shut down and padlocked by the city’s Business Permit and Licensing Department. This stemmed from an ordinance passed by Pasig in December 2022 prohibiting e-gaming establishments (with the exception of official outlets of the Philippine Charity Sweepstakes Office) from holding business permits. The city gave the affected businesses a full year, or until Dec. 31, 2023, to wrap up their affairs, but some still ignored the deadline.

“We know that this brings no good to our society. And if it brings no good to our society, let’s just remove it from our city,” Sotto said. “Even if they say that they pay ‘taxes,’ the city won’t lose that much,” he added in a Facebook post.

We urge Congress to hasten the passage of HB 5082, as it is high time we removed something that brings no good to our society from our country. While the legislative process is taking its course, other cities and municipalities can consider taking action similar to Pasig’s. Likewise, Pagcor should strongly consider reading the writing on the wall and honoring House Resolution 1197.

Congress should hasten the passage of HB 5082 as it is high time we removed something that brings no good to our society from our country.