China called on the Philippines to put an end to offshore gambling, which it described as a "social ill" that encourages crimes of kidnapping, human trafficking, and murder, according to Rappler1. The call came in June 2024, and in early July Executive Secretary Lucas Bersamin met Chinese Ambassador to the Philippines Huang Xilian to "strengthen their partnership" in the fight against organized crime1.
The development was reported alongside a separate push inside the Philippines. Former senator Leila de Lima and former Supreme Court justices Antonio Carpio and Conchita Carpio Morales led a group of individuals in an open letter to President Ferdinand Marcos Jr. dated Tuesday, July 16, 2024, urging his administration to cancel the licenses granted to Philippine offshore gaming operators (POGOs) that cater to the mainland Chinese market1. The signatories included the groups 1Sambayan, EveryWoman, Women2022, and Intercessors for the Philippines1.
The group argued that approving licenses for such operators violates the Philippine Amusement and Gaming Corporation's (Pagcor) own rules, which it said require every POGO to operate only in a foreign country where gambling is allowed1. It cited three provisions1:
| Provision | Date | Requirement cited |
|---|---|---|
| Internet Gaming Regulations, Regulation 2, Section 4 (Prohibited Acts) | July 12, 2023 | No allowing the registered website to be accessed within Philippine territory or in territories where online gaming is prohibited |
| Offshore Regulatory Gaming Manual, Regulation 2, Section 3 (Prohibited Acts of Philippine Offshore Gaming Operators) | July 3, 2018 | The operator shall not allow its gaming website to be accessed within the territory of the Philippines or in territories where online gaming is prohibited |
| Offshore Regulatory Gaming Manual, Regulation 4, Section 2 (Additional Documentary Requirements) | July 3, 2018 | License from the foreign jurisdiction where the feed will be streamed to, or license of the recipient operator abroad |
The group said Pagcor has the power to immediately cancel a license of a POGO later found to have made misrepresentations or provided false information1.
"We, therefore, implore the President to direct Pagcor to cancel immediately all licenses of POGOs that cater to the mainland Chinese market"
POGOs sprouted across the Philippines beginning 2016 and grew exponentially in the succeeding years, as operators took advantage of liberal gaming laws under the administration of Rodrigo Duterte1. Many POGO operators are run by Chinese nationals, as gambling in their home country is banned1. In the past year, Beijing helped Manila shut down five POGO hubs and repatriate a thousand Chinese individuals1.
Scrutiny of POGOs has intensified in recent months as the Senate investigates illegal activities linked with offshore gaming operators1. The probe took a turn after it was discovered that Alice Guo, a Tarlac mayor with POGO ties, had fingerprints that matched a Chinese woman who only arrived in the Philippines in 2003, raising suspicions that she entered local politics to further sustain POGO operations in her town of Bamban1.
What it means for players
The pressure concerns operators licensed in the Philippines to serve players in mainland China, where all gambling is banned1. For Chinese players, the group's argument is that no POGO can operate legally in mainland China, so any license covering that market is void under Pagcor's own regulations1. For players in the Philippines, the cited rules bar a licensed operator from allowing its website to be accessed inside Philippine territory or in territories where online gaming is prohibited1. The status of individual licenses has not been reported, and no cancellation has been announced.
What happens next
The open letter asks Marcos to direct Pagcor to cancel immediately all licenses of POGOs that cater to the mainland Chinese market1. No response from the President or Pagcor to the July 16 letter has been reported1. The Senate investigation into illegal activities linked with offshore gaming operators continues1.
