Ban “sufficient” to end crime-ridden POGOs

Philippine President Ferdinand Marcos Jr. has enacted a significant decree prohibiting offshore gaming operations, yet he has declined to formalize this ban into law.

On July 22, during a passionate State of the Nation Address, President Marcos announced the cessation of Philippine Offshore Gaming Operations (POGOs), denouncing them as hotspots for corruption and criminal activity. Subsequently, on November 5, he formally signed Executive Order 74, mandating the closure of all POGOs by December 31.

The directive applies to POGOs licensed by the Philippine Amusement and Gaming Corporation (PAGCOR) and extends to any associated entities, including strategic support providers, IT support providers, live studio and streaming providers, and gaming software providers.

According to the Philippine News Agency, the government asserts that POGOs have contributed to a tarnished international reputation, potentially deterring foreign investment and tourism. Furthermore, the operations have allegedly led to significant financial crimes, hindering the nation’s ongoing efforts to be removed from a grey list of jurisdictions at risk for money laundering and terrorism financing.

Marcos: Ban is “sufficient” to Deter Crime

In an official release, President Marcos emphasized that the Executive Order aims to “safeguard national security, maintain public order, uphold the rule of law, protect the safety of citizens, and ensure the integrity of the nation’s social fabric.” Despite mounting pressure to codify the ban into law, he maintains that the existing executive action is “sufficient” to prevent future illicit gaming operations.

However, concerns have been raised by some lawmakers regarding the efficacy of the Executive Order. Senator Risa Hontiveros, who chairs the committee overseeing POGO hearings, has expressed apprehensions regarding potential loopholes that could permit POGOs to resurface under alternative forms. She pointed out that the order does not explicitly curtail online games of chance conducted within PAGCOR-operated casinos or licensed integrated resorts that have junket agreements.

“Does this imply that POGOs could operate within casinos such as City of Dreams or Fontana, or within resorts hosting casino operations?” she queried. Hontiveros has also flagged the possibility of special economic zones introducing offshore gambling operations, compromising the intent of the Executive Order.

In response, President Marcos reiterated, “It’s the nature of the operation we are banning, not the platform from which it operates.” He addressed concerns transparently, indicating his commitment to ensuring that the ban is effective and comprehensive.

Gatchalian: EO Won’t Prevent POGO Comeback

Senator Sherwin Gatchalian, a longstanding opponent of POGOs, has voiced his intention to repeal the legal framework that currently allows for the taxation of POGOs, asserting that this measure is essential to prevent any potential resurgence of offshore gaming operations under subsequent administrations.

In an interview with the Manila Bulletin, Gatchalian stated, “We will pursue legislation to repeal the taxation of POGOs… The Executive Order alone will not suffice to ensure the complete shutdown of POGO operations in the Philippines.”

This ongoing debate highlights the complexities within the Philippine gaming industry and underscores the critical need for robust regulatory frameworks to navigate the evolving landscape of gambling within the nation. As policymakers grapple with these issues, the future of gambling operations in the Philippines remains uncertain, warranting close attention from stakeholders, investors, and industry analysts alike.