Valenzuela City passes ordinances banning all forms of gambling including Pogos

Valenzuela City banned Philippine offshore gaming operators (POGOs) and other forms of gambling, Mayor Wes Gatchalian announced on Tuesday, July 4, 2023. The city council passed three ordinances, and the mayor ordered the suspension of new applications for Small Town Lottery (STL), online cockfighting, online bingo and online poker, among others¹.

Ordinance No. 1105, approved on June 5, 2023, prohibits POGOs within the territorial jurisdiction of Valenzuela³. Ordinance No. 1107 temporarily bans the operation, new applications and establishments of online gambling and STL for five years while the city reviews and evaluates its zoning ordinance³. A third ordinance, No. 1108, prohibits all forms of illegal gambling in the city³. All three were authored by Valenzuela City 1st District Councilor Ricardo Riacrr Enriquez³.

The penalties differ by ordinance. Reports do not agree on the fine range for the POGO ban: the Inquirer, citing Councilor Ricar Enriquez, the majority floor leader, said violators face fines from P100,000 up to P500,000¹, while Rappler reported a fine of P200,000 to P300,000 and imprisonment of no more than a year under Ordinance No. 1105³. Under Ordinance No. 1108, an individual violator faces a fine of P1,000 to P5,000, while a president, manager, owner, area manager or supervisor faces P20,000 to P50,000; violators may also be imprisoned for no more than a year³.

Gatchalian said he signed the ordinances to preempt social impacts from illegal gambling, such as human trafficking, money laundering, prostitution and kidnapping¹. He recalled that during a raid on an unauthorized cockfight, or "tupada," in Barangay Lingunan in May 2021, a teenager was shot dead by police during the commotion¹.

Valenzuela City remains without any POGO establishment but currently has nine STL operators, the mayor said¹. Rappler reported there are nine registered businesses operating bingo and online games in the city, contributing around P1 million to city revenue, and that existing registered businesses can continue operating and renew their permits³.

A ban on POGOs and other forms of online gambling also took effect in Pasig City in December 2022. In signing Ordinance No. 55, series of 2022, Pasig City Mayor Vico Sotto gave companies running e-games, "e-sabong," e-bingo, online poker and casinos, and computer gaming stations one year to wrap up operations and leave the city¹. In September 2022, following reports of serious crimes including killings and abductions, the Senate moved to ban POGOs nationwide, and Justice Secretary Jesus Crispin Remulla said illegal POGO workers would be summarily deported¹. As of June 2023, the Philippine Amusement and Gaming Corp. listed 33 licensed POGOs¹. Citing National Bureau of Investigation data, Senator Sherwin Gatchalian said POGO-related crimes reached 113 from November 2019 to March 2023, of which 65, or 58%, involved human trafficking².

Taxes collected by the Bureau of Internal Revenue from POGOs and their service providers fell from P7.18 billion in 2020 to P3.91 billion in 2021, according to the Department of Finance¹. Industry estimates cited by Rappler put POGO revenues to the economy at P551 billion yearly³.

What it means for players

The ordinances cover the whole of Valenzuela City, so the practical effect falls on anyone gambling there, whether resident, expat or visitor. POGOs cannot operate in the city³. New applications for STL, online cockfighting, online bingo and online poker are suspended¹, and online gambling and STL operations face a five-year temporary ban under Ordinance No. 1107³. Existing registered bingo and online gaming businesses in the city may continue and renew permits³. Illegal gambling in any form is prohibited, with fines and possible imprisonment for individuals and for owners, managers and supervisors³. The city had no POGO establishment at the time of the announcement¹.

What happens next

The five-year ban under Ordinance No. 1107 runs while the city reviews and evaluates its zoning ordinance³. The Senate moved in September 2022 to ban POGOs nationwide, but no nationwide ban had taken effect at the time of the announcement¹. For the wider legal picture, see The Philippines' Ban on Offshore Gaming (POGOs), Can I Gamble in the Philippines?, Gambling Laws in Asia: What Is Legal in 12 Jurisdictions, Is Online Gambling Legal in Asia? The 12 Jurisdictions Compared and Crackdowns on Offshore Online Gambling Hubs in Asia.