Presidential Anti-Organized Crime Commission shuts down Smart Web Technology Corporation

The Presidential Anti-Organized Crime Commission shut down Smart Web Technology Corporation in October 2023, according to a bill filed by Senator Sherwin Gatchalian that cited the raid among cases of Philippine Offshore Gaming Operators linked to crime¹. Smart Web held a license from the Philippine Amusement and Gaming Corporation¹.

The premises had a torture chamber and massage parlors allegedly being used for prostitution, and the firm was also found to be involved in alleged labor trafficking, and crypto and love scam operations¹. Gatchalian filed Senate Bill No. 2689 on Tuesday, May 21, seeking to repeal the taxability of POGOs provided by Republic Act No. 11590, which he described as the "only law that acknowledges and legitimizes POGO operations in the Philippines"¹. Then-president Rodrigo Duterte signed RA No. 11590 into law in September 2021¹.

Gatchalian's bill cited other raids alongside Smart Web¹:

In the bill, Gatchalian wrote: "Its main goal is ultimately to outlaw and prohibit offshore gaming operations in the Philippines"¹.

Citing 2022 data from the Department of Finance, Gatchalian said POGOs generated economic benefits worth P133.7 to P144.5 billion annually, but entailed a cost of P147.7 billion annually due to foregone potential investments and tourism revenues, alongside costs in enforcement and immigration¹. That yielded a net cost of around P3.3 to P14 billion annually, equivalent to 0.01% to 0.06% of gross domestic product¹. "This means that POGO operations have brought more harm than good, as the economic costs greatly outweigh the benefits derived from such operations," Gatchalian said¹. Other crimes POGOs have been linked to include kidnapping, murder, and money laundering¹.

The March 13 raid of a POGO in Bamban, Tarlac allegedly trafficking workers prompted a spotlight on Bamban Mayor Alice Guo, who faces scrutiny at the Senate over suspicions she may be a Chinese asset¹. Guo denied she was involved in POGO Zun Yuan Technology Corporation's operations, saying only that she had owned the land where the compound stood¹.

What it means for players

Smart Web was licensed by PAGCOR, the regulator that also licenses the offshore operators serving players abroad¹. The raid and the alleged crimes attached to it sit inside the same licensing system, which is the context for how Philippine offshore gaming has been policed. For anyone gambling in the Philippines, the practical picture is that enforcement actions against POGO compounds have involved alleged trafficking, prostitution and scam operations on the same premises as licensed gaming¹. The bill's stated aim is to remove the law that legitimizes POGO operations entirely¹. Details of how a ban would affect existing licenses, players or funds held by operators have not been reported in the cited coverage.

What happens next

Senate Bill No. 2689, filed on May 21, seeks to repeal the taxability of POGOs under RA No. 11590¹. Its stated goal is to outlaw and prohibit offshore gaming operations in the Philippines¹. The bill's progress through the Senate has not been reported in the cited coverage. Separately, 180 Chinese nationals caught working at the Smart Web POGO hub without proper immigration documents and running an alleged prostitution den were processed for deportation to Shanghai on December 14, 2023¹.

For more on the conditions inside these compounds, see What Happens to Workers Inside a Scam Compound? and Gambling Scams and Safety in Asia. For the licensing and legal background, see Can I Gamble in the Philippines?.