Pasig City has shut down all forms of online gambling in the city, Mayor Vico Sotto said, ordering the closure of Philippine Offshore Gaming Operators (POGOs), e-games and e-bingo on Friday, February 91. Sotto said he directed the city's Business Permits and Licensing Department, with police assistance, to carry out the closures1.
Sotto said more than 20 online gambling establishments were told in 2022 to cease operations by the end of 2023, when their business permits would expire, but 18 e-games and e-bingo operators did not comply with Pasig City Ordinance 55 Series of 20221. He said the 18 were open until February, so the city ordered them closed1. Sotto said the state-owned Philippine Amusement and Gaming Corporation (PAGCOR) filed a temporary restraining order against the city's decision, which was denied, and that the case is on appeal1. He also said state-owned Philippine Charity Sweepstakes Office (PCSO) lottery outlets are not included in the closures1.
Sotto said the closures would affect Pasig City's revenues, but that the social costs outweigh the benefits1. He cited addiction, suicides and human trafficking cases linked to the industry, as well as corruption in the issuance of permits under previous city councils1. He said that during an inspection of a POGO office, out of some 100 employees he saw only one Filipino working there1.
"Last Friday, I gave the order to our BPLD [Business Permits and Licensing Department], with police assistance, to shut them down"
The National Economic and Development Authority earlier estimated that POGOs' contribution to the economy has declined in recent years1. As of 2022, POGOs remitted P53.1 billion, or 0.31% of the Philippines' gross domestic product, down from P104.5 billion in 2019, when they accounted for 0.67% of GDP1. Total taxes collected from POGOs reached P7.38 billion in 2021, lower than the P12.46 billion collected in 2020 and the P14.44 billion in 20191.
| Year | POGO remittances | Share of GDP | Taxes collected |
|---|---|---|---|
| 2019 | P104.5 billion | 0.67% | P14.44 billion |
| 2020 | Not reported | Not reported | P12.46 billion |
| 2021 | Not reported | Not reported | P7.38 billion |
| 2022 | P53.1 billion | 0.31% | Not reported |
What it means for players
The closures cover POGOs, e-games and e-bingo outlets in Pasig City, but not PCSO lottery outlets, which Sotto said are excluded1. Sotto said it is impossible to completely stamp out gambling in the city because so much of it now happens online, and that the closures would at least reduce it1.
The status of the PAGCOR appeal against the city's decision has not been reported beyond Sotto's statement that the case is on appeal1. For players in the Philippines, the legal position of online casinos and offshore operators remains a matter of national law and pending legislation, not only city permits.
What happens next
The House games and amusements panel approved a bill banning POGOs in the country on Monday, February 121. The PAGCOR case against Pasig City's decision remains on appeal1.
