Justice Secretary Jesus Crispin Remulla said on Thursday that he had ordered the National Bureau of Investigation to stop its operations against Philippine offshore gaming operators, or Pogos, because of reports of extortion and other irregularities1. Remulla, speaking on the sidelines of a Rotary Club of Manila gathering, said the irregularities were described as "hulidap," a term used in the Philippines for police extortion1.
"I told (NBI officer in charge) Director (Medardo) De Lemos to stop everybody from operating on Pogos because we are getting a very bad reputation on the matter"
Remulla said there were also several problems involving Pogo workers, including kidnapping cases. He said workers "kidnap each other, they sue each other at the DOJ, but they (agree to) settle later on," adding that the department would only act "if there is really a police matter that is necessary for us to work on"1. Asked whether high-ranking officials were involved in irregularities tied to Pogo operations, Remulla said: "I don't know yet. I have not gone that far"1. The Inquirer said it tried to reach NBI spokesperson Ferdinand Lavin for comment but he had not responded1.
The Pogo industry boomed in the early years of the Duterte administration but suffered from a tax dispute with the government in 2019 and from the COVID-19 pandemic in 2020, according to the report1. A revival was projected after the industry settled the tax dispute last year1.
Under the Pogo law enacted in 2021, all offshore gaming licensees, whether Philippine- or foreign-based, are considered to be doing business in the Philippines and must pay a 5 percent gaming tax on gross gaming revenue or receipts from their gaming operations1. Foreigners employed by Pogo licensees and their service providers must also pay a final withholding tax of 25 percent on gross income, provided the minimum final withholding tax due in any taxable month is not less than P12,500, and employees must secure a tax identification number1.
The report also noted that in 2018, wealthy Chinese-Filipino businessmen active in Pogo operations were reported to have bought the former Island Cove resort in Cavite from the Remulla family for conversion into a Pogo hub, with offices, dormitories for Chinese workers and commercial and recreation establishments1.
What it means for players
The order concerns enforcement operations against Pogo operators, not the licensing or tax rules that apply to them. The 5 percent gaming tax on gross gaming revenue and the 25 percent final withholding tax on foreign Pogo employees remain in place under the 2021 law1. For players, the practical effect described in the report is a pause in NBI activity against Pogo firms, which Remulla linked to extortion complaints and to disputes among workers that he said were often settled privately1. The report does not say how long the order will last, whether it covers all NBI units, or what happens to cases already filed. None of that has been reported1.
What happens next
Remulla said the department would act only where a police matter requires it, and that he had not yet looked into whether high-ranking officials were involved1. No date or further step was announced1.
For background on the sector, see The Philippines' Ban on Offshore Gaming (POGOs) and Can I Gamble in the Philippines?. For reporting concerns about gambling-related crime, see Gambling Scams and Safety in Asia.
Sources1 sources
- Remulla tells NBI to stop ‘operating’ vs Pogos, cites extortion reports | Inquirer News, newsinfo.inquirer.net
