The Philippines’ gaming regulator, the Philippine Amusement and Gaming Corp (PAGCOR), announced on Tuesday that it will cancel the licenses of offshore gambling firms. This move is in response to President Ferdinand Marcos Jr’s directive to enforce a total ban on the industry.
In his State of the Nation address on Monday, President Marcos declared a ban on Philippine Offshore Gaming Operators (POGOs), an industry primarily operated by Chinese firms. He instructed the regulator to phase out the sector by the end of the year.
“No problem in closing down POGOs because I can invoke national security and the president’s order,” said Alejandro Tengco, chairman of PAGCOR.
| Employment Type | Number of Employees |
|---|---|
| Direct and Indirect Filipino Employees | 40,000 |
| Foreign Workers | 23,000 |
The 42 licensed POGOs directly and indirectly employ around 40,000 Filipinos, according to PAGCOR data. As of the end of 2023, nearly 23,000 foreigners were working in the industry. Tengco noted the government’s challenge is to prevent these firms from operating illegally, as the government could lose approximately 23 billion pesos ($400 million) in annual license fees and taxes from licensed POGOs.
The finance and labor ministries will provide assistance to displaced Filipino workers through safety nets and training programs, stated Finance Secretary Ralph Recto.
The Presidential Anti-Organized Crime Commission affirmed that the crackdown on hundreds of illegal POGOs, which are associated with crimes such as human trafficking and torture, will continue. The commission also mentioned that foreign nationals working in these illegal firms will be deported.
The online gaming industry in the Philippines began in 2016, experiencing rapid growth as operators leveraged the country’s liberal gaming laws to target Chinese customers, where gambling is banned. At its peak before the pandemic, the POGO industry involved 300 firms, significantly boosting demand for apartments, offices, and transportation services.
Featured Image courtesy of DALL-E by ChatGPT
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