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Philippines

House panel approves bill banning POGOs

A Philippine House committee approved two measures to ban offshore gaming operators on February 12, as Pasig City shut down online gambling outlets in its jurisdiction.

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The House committee on games and amusements approved House Bill No. 5082 and House Resolution No. 1197 on Monday, February 12, both seeking to prohibit Philippine Offshore Gaming Operators (POGOs) in the country1. The committee, chaired by Cavite Rep. Antonio Ferrer, approved the measures unanimously, subject to style and inclusive of recommendations and amendments, during a public hearing4. HB 5082 was filed by Manila Rep. Bienvenido Abante Jr. and HR 1197 by Cagayan de Oro Rep. Rufus Rodriguez2.

HB 5082 would prohibit "any person or entity to conduct online games of chance or sporting events via the internet using a network and software or program, exclusively to offshore authorized players within Philippine territory"2. Rodriguez said the government can no longer regulate its way out of the problems associated with the industry3.

"The number of victims has increased exponentially. In other words, there's no more time to put regulations. We are saying here that there is no more chance for more regulation because five years (was given) to have good regulations, and they have failed."
Rufus Rodriguez, Cagayan de Oro Rep., Philstar.com3

Regulator PAGCOR, which renamed the licensees Internet Gaming Licensees in the last quarter of 2023, told the panel it was already strictly regulating the firms and expressed reservations about a ban2. PAGCOR chair Alejandro Tengco said the reforms had produced positive gains and that "the crimes have definitely been addressed"4. He said the number of licensees fell to 75 as of end-2023 from close to 300 in 2019, and that at its peak the industry generated P7 billion in license fees, against P5.2 billion from the smaller pool2. PAGCOR revenues from POGOs were 5 to 6 percent of the agency's total income, he said2.

Reported figures on the industry's economic weight differ between accounts:

AccountReported figures
RapplerPOGOs remitted P53.1 billion in 2022, or 0.31 percent of GDP, down from P104.5 billion in 2019, or 0.67 percent1
Manila BulletinPOGOs earned P53 billion in 2020, against P104 billion in 2019 during its peak4
Philstar.comPOGO revenues hovered around 0.2 percent of GDP in 20233

Tax collections reached P7.38 billion in 2021, below P12.46 billion in 2020 and P14.44 billion in 20191.

Separately, Pasig City Mayor Vico Sotto ordered the shutdown of POGOs, e-games and e-bingo in the city on Friday, February 9, with police assistance1. Sotto said 18 e-games and e-bingo operators did not heed Pasig City Ordinance 55 Series of 2022, under which more than 20 online gambling establishments were told to cease operations by end-2023 when their permits expired1. He said PAGCOR filed a temporary restraining order against the city's decision, which was denied, and the case is on appeal1. PCSO lottery outlets are not included in the closures1.

What it means for players

The House measures are approvals at committee level, not law, so POGO operations remain subject to existing licensing rules for now. The Pasig closures apply to POGOs, e-games and e-bingo inside that city; PCSO lottery outlets there are unaffected1. Players outside Pasig are not covered by the city order. The status of PAGCOR-licensed Internet Gaming Licensees, and of the appeal against Pasig's shutdown, has not been finally resolved in the reports. Background on the sector is in our guide to the Philippines' ban on offshore gaming (POGOs) and on whether you can gamble in the Philippines; the wider regional picture is in gambling laws in Asia.

What happens next

The two measures now move forward in the House process; no floor vote date has been reported. The Pasig case remains on appeal after the temporary restraining order was denied1. President Ferdinand Marcos Jr. has said he needed a "good reason" to outlaw all POGO operations, saying issues with the hubs are caused by illegal operators3.

Sources4 sources
  1. Pasig City shuts down online gambling outlets over addiction, human trafficking, rappler.com
  2. House panel OKs 2 measures on Pogo ban, newsinfo.inquirer.net
  3. House panel OKs bill banning all POGO operations | Philstar.com, philstar.com
  4. Manila Bulletin - House panel OKs measures banning POGO in PH, mb.com.ph