Senator Sherwin Gatchalian filed Senate Bill No. 2689 on Tuesday, May 21, 2024, seeking to repeal the taxability of Philippine Offshore Gaming Operators (POGOs) under Republic Act No. 11590 and to outlaw offshore gaming operations in the country1. The bill targets RA No. 11590, which Gatchalian described as the "only law that acknowledges and legitimizes POGO operations in the Philippines"1. Then-president Rodrigo Duterte signed that law in September 20211.
In his explanatory note, Gatchalian wrote:
"Its main goal is ultimately to outlaw and prohibit offshore gaming operations in the Philippines."
Gatchalian cited several law enforcement raids in the bill. A police raid in May 2023 involving Colorful and Leap Group in Clark Freeport Zone allegedly forced over 1,000 foreigners and Filipinos to work in fraudulent cyber activities1. Xinchuang Network Technology was raided in Las Piñas the following month, where around 2,700 suspected victims of human trafficking were rescued1. In October 2023, the Presidential Anti-Organized Crime Commission shut down Smart Web Technology Corporation, which was licensed by the Philippine Amusement and Gaming Corporation and was also found to be involved in alleged labor trafficking and crypto and love scam operations1. A March 13 raid of a POGO in Bamban, Tarlac allegedly trafficking workers prompted scrutiny of Bamban Mayor Alice Guo, who denied involvement in POGO Zun Yuan Technology Corporation's operations and said she had only owned the land where the compound stood1. Six Chinese fugitives were among those rounded up in that raid1. Other crimes POGOs have been linked to include kidnapping, murder, and money laundering1.
Citing 2022 Department of Finance data, Gatchalian said POGOs generated economic benefits worth P133.7 to P144.5 billion annually, against costs of P147.7 billion annually from foregone potential investments and tourism revenues, alongside enforcement and immigration costs1. That yielded a net cost of around P3.3 to P14 billion annually, equivalent to 0.01% to 0.06% of gross domestic product1.
| Item | Annual figure |
|---|---|
| Economic benefits | P133.7 to P144.5 billion |
| Costs (foregone investment, tourism, enforcement, immigration) | P147.7 billion |
| Net cost | P3.3 to P14 billion (0.01% to 0.06% of GDP) |
What it means for players
The bill is a proposal, not a law. RA No. 11590 remains in force, and POGOs licensed by the Philippine Amusement and Gaming Corporation continue to operate under it1. POGOs serve customers abroad rather than domestic bettors, so the bill as described concerns the offshore operators and their tax treatment, not the domestic gambling options covered in our guide to gambling in the Philippines. Nothing in the reporting states how the bill would affect domestic online casino players, land-based casinos, or other Philippine Amusement and Gaming Corporation licensees, and no such effect has been reported1. The bill's stated aim is to prohibit offshore gaming operations entirely, which would remove the POGO category rather than change the rules for local players1. Our page on online casinos in the Philippines covers the licensed domestic market, and our POGO ban guide tracks the wider push against offshore operators. For how the Philippines compares with its neighbors, see gambling laws in Asia.
What happens next
Senate Bill No. 2689 has been filed and referred for legislative action; no committee schedule, hearing date, or vote has been reported1. The bill would need to pass the Senate and the House of Representatives and be signed by President Ferdinand Marcos Jr. before taking effect, and no timeline for those steps has been reported1.
Sources1 sources
- Gatchalian files bill seeking to outlaw POGOs, rappler.com
