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Philippine President Banning POGOs Despite Government Receiving US$89m in Fees in 2023

  • PAGCOR will have until the end of the year to ensure all POGOs are closed
  • The authorities have already shut down many of the biggest POGO offenders
  • The Philippines is currently embroiled in a tense disagreement with China
Ferdinand Marcos Jr.
Philippines President Ferdinand Marcos Jr. has announced the banning of Philippine offshore gaming operators (POGOs). [Image: Shutterstock.com]

Taking no prisoners

Philippine President Ferdinand Marcos Jr. has announced a blanket ban on all locally licensed online gambling operations that target people in other countries. He revealed the change during his state of the nation speech on Monday, saying that many of these enterprises engage in serious crimes like murder, kidnapping, torture, and financial scams.

provide jobs to tens of thousands of people

More than 400 Philippine offshore gaming operators (POGOs) operate in the country and provide jobs to tens of thousands of people, many of whom are Chinese nationals. The country’s gambling regulator PAGCOR will have until the end of 2024 to ensure these platforms are all wound down.

The president has told labor officials to begin finding ways to replace the lost jobs. The POGO sector generated ?5.2bn (US$89m) in fees for the government last year, which was about 0.4% of total national GDP.

A long time coming

President Marcos Jr. has long outlined his intentions to ban POGOs, saying he just needed a strong reason to do so. The Chinese government has also encouraged nearby nations since 2021 to crack down on any of their residents from engaging in gambling operations.

POGOs are Philippines-based companies that offer services in other countries. They have been under the regulation of the government since 2016 when Rodrigo Duterte took over as president.

The authorities in the Philippines have already completed numerous missions to crack down on illegal operators, which has led to the shutdown of large complexes where many people were being forced to work in poor conditions for little pay. They even raided a plastic surgery center that was used by online casino operatives to change their identities.

President Marcos Jr. described how many of these companies pretend to be legitimate when they actually break many laws. He said: “the grave abuse and disrespect to our system of laws must stop.”

A time of uncertainty

In addition to introducing the ban on POGOs, President Marcos Jr. also emphasized plans to improve the country’s security by entering alliances with nearby nations.

One of the flashpoints has been a region in the South China Sea, with members of the Filipino and Chinese navy engaging in an altercation last month over the disputed stretch.

ramming, boarding, and seizing a couple of Filipino navy boats

The incident saw Chinese personnel ramming, boarding, and seizing a couple of Filipino navy boats that were trying to transfer supplies such as firearms and food to an outpost. Both governments reportedly came to an agreement over the disputed territory on Sunday.

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