Government task force to shut down Philippines POGOs
In a decisive move to regulate the gambling industry, the Philippine government has instituted a multi-agency task force to oversee the shutdown of 41 licensed Philippine Offshore Gaming Operations (POGOs). This development follows President Ferdinand Marcos Jr.’s directive in July to ban POGOs amid increasing concerns about their impact on society and the economy.
As of September 19, the Department of Justice (DOJ) has confirmed that the remaining POGO operators have committed to disbanding and exiting the Philippines, as reported by PhilStarGlobal.
The DOJ is leading the closure initiative alongside a task force that includes key stakeholders such as the Philippine Amusement and Gaming Corporation (PAGCOR), the Presidential Anti-Organized Crime Commission, and the Bureau of Immigration. Additionally, the Department of Labor and Employment is mobilizing resources to assist approximately 20,000 Filipino workers currently employed by POGOs in securing alternative job opportunities. Meanwhile, foreign workers are required to arrange their repatriation to their respective countries.
The Decline of POGOs
At their zenith in 2019, there were over 300 POGOs operating in the Philippines, contributing approximately ₱166.49 billion (about £2.226 billion/€2.667 billion/$3 billion) annually to the economy, including ₱7 billion in license fees to PAGCOR. However, this surge in revenue was overshadowed by severe social and economic repercussions connected to the industry.
Growing reports of criminal activities—ranging from kidnappings to human trafficking—raised alarm among government officials. Secretary of Finance Ralph Recto cited the economic toll of these illicit activities, estimating total costs at ₱265.74 billion, resulting in a net loss exceeding ₱99.52 billion each year. The intangible social costs, he emphasized, were even more severe; lives were lost, and many fell victim to various criminal enterprises. Recto noted that the continued operation of POGOs fundamentally undermined institutional integrity.
The situation reached a tipping point following police raids on POGO facilities in Pampanga and Tarlac. These operations uncovered evidence of online scams, money laundering, human trafficking, and severe abuses against employees. Reports of a potential mass grave at a Pampanga site have prompted ongoing investigations by the DOJ.
On July 22, President Marcos reiterated the need for a complete cessation of all POGO activities, both legitimate and otherwise, thereby marking a significant policy shift in the gambling sector.
The Final Chapter of POGOs
In a statement released on September 19, the DOJ announced that the 41 remaining POGO operators have acknowledged President Marcos’ directive and intend to terminate their operations. The task force is charged with creating a comprehensive framework to ensure the complete prohibition of POGO activities across the nation by year’s end, prioritizing the welfare of affected workers.
In an effort to facilitate this transition, the Department of Labor is set to host a job fair on October 10 for local employees displaced by the closure of POGOs. Furthermore, effective October 16, 2024, all foreign worker visas associated with POGO employment will be downgraded to tourist visas. Those affected must exit the Philippines within 60 days to avoid involuntary repatriation.
As the Philippine government takes these measures, the landscape of the gambling industry continues to evolve, necessitating a close examination of regulatory practices and their implications for both local and international stakeholders.
