Philippine President Bans POGOs amidst Rising Concerns

In a decisive blow to the country’s nascent offshore gambling industry, Philippine President Ferdinand Marcos instituted a blanket ban on all Philippine Offshore Gaming Operators (POGOs) on Monday. The move cracks down on an online sector dominated by Chinese firms, plagued with unlicensed activities and links to organized crime.

China Has Been Urging for a Crackdown on POGOs

The Philippine online gaming industry has been on the rise since it came into full swing in 2016 under then-President Rodrigo Duterte. Government statistics indicate that by the end of 2023, around 25,000 Filipinos and nearly 23,000 foreign nationals had found employment in the POGO sector. These companies predominantly target foreign markets and often operate without the necessary licenses.

The President’s decision comes amid rising tensions between Manila and Beijing over disputed areas in the South China Sea. China has been pressing the Philippines to shut down online gambling operations and bolster collaboration against cross-border gambling. This newest development aligns with the Chinese Embassy’s mission to crack down on Phillipine-based illegal operators.

Last month, Beijing reiterated its call for a ban on online gaming in the Philippines in an attempt to rein in illegal gambling activities that usually target Chinese nationals. The Embassy was concerned regarding the substantial number of Chinese citizens involved in these operations and denied reports linking the Chinese government to POGO operations.

Such Companies Often Have Ties to Organized Crime

The POGO ban announcement, which came during Marcos’ State of the Nation address, drew a standing ovation in Congress. He highlighted how such operators flaunted the country’s laws and regulations, stressing how POGOs often had ties to organized crime. Philippine authorities note that these companies often have links to financial scamming, money laundering, prostitution, human trafficking, and even murder.

Disguising as legitimate entities, their operations have ventured into illicit areas furthest from gaming.

Philippine President Ferdinand Marcos

PAGCOR, the country’s gaming regulator, previously noted that around 250 to 300 offshore gambling firms operated without a license in the Philippines, far outnumbering the 46 legitimate gaming operators and creating significant regulatory challenges. Philippine senators stood behind the President’s decision, championing the ongoing investigations into the criminal links of POGOs. 

It will solve many of the problems that we have been encountering, but it will not solve all of them.

Philippine President Ferdinand Marcos

The move of President Marcos to ban the operation of POGO is a dramatic turn of events in the country’s strategy toward online gambling. Hopefully, this measure will restore law and order and address the many social problems arising from unregulated POGO operations. The clampdown is part of broader regional efforts to mitigate the impact of cross-border gambling and to protect national interests.