The Criminal Investigation and Detection Group (CIDG) was granted a search warrant by Judge Belinda Rama of Malolos, Bulacan on June 4, 2024 to search for workers of Lucky South 99 suspected of being trafficked at the Grand Palazzo Royale compound in Porac, Pampanga1. When the Presidential Anti-Organized Crime Commission (PAOCC) went to the site that day, it saw more than a hundred foreigners leaving the compound1.
The operation was not described as a raid or a rescue. PAOCC called it a "welfare check" because its search warrant "did not contain the persons and items to be searched and seized"1. The following day, June 5, CIDG returned to the Malolos court to report that the warrant was not implemented because "the occupants of the subject premises sought to be searched [had] already fled...[en masse]"1. Judge Rama retracted the June 4 warrant, held a clarificatory hearing, and ultimately denied the application, saying there "was no compelling reason" for her court in Malolos to grant a warrant outside its jurisdiction and "no sufficient evidence" of a leak1.
PAOCC chief Undersecretary Gilbert Cruz said the operation had been compromised. "This is not the first time we were burned, this is the third time," he said at the Kapihan sa Manila Bay forum on June 121. Senator Sherwin Gatchalian said POGOs may have infiltrated law enforcement and the judiciary, and Supreme Court spokesperson Camille Sue Mae Ting said the High Court will probe the allegations1.
The compound was initially estimated at 10 hectares, though authorities have not been allowed to reach some restricted areas, and PAOCC's Cruz said it is "thrice as big" as the seven-hectare Baofu compound in Bamban, Tarlac1. It has 46 buildings overall, 26 of which have yet to be searched1.
Lucky South 99's building, in the compound's Thai Royal Court, was set up in July 20191. Whirlwind Corporation moved to the Thai Court compound and was incorporated with initial capital of P312.5 million by Filipinos Josefina Balisacan, Stephanie Balisacan Mascarenas, Raymond Calleon Co, Randel Calleon Co, and Chinese national Duanren Wu, who each invested P62.5 million1. Lucky South 99 Outsourcing Inc. registered with the Securities and Exchange Commission in September 2019 with paid-up capital of P15 million; Mascarenas was its biggest investor at P9 million, and the other incorporators, Michael Bryce Balisacan Mascarenas, Rodrigo Bande, Jing Gu and Xiang Tan, each invested P1.5 million1. Its Letter of No Objection was granted in November 2019 after being signed and approved by Porac Mayor Jaime Capil1.
By 2022 the board was replaced; the new president, with 40% shares, was Singaporean Zhang Jie1. In 2020 Lucky South secured offshore gaming licenses for two locations in Laoag City, Ilocos Norte, and voluntarily canceled them on March 22, 20231. Its license for the Thai Royal Court expired in October 20231. On May 22, 2024, Pagcor denied Lucky South 99's application, citing "concerns" related to the Bamban case1.
| Event | Date |
|---|---|
| Lucky South 99 building set up | July 2019 |
| SEC registration of Lucky South 99 Outsourcing Inc. | September 2019 |
| Letter of No Objection granted | November 2019 |
| Laoag licenses canceled | March 22, 2023 |
| Thai Royal Court license expired | October 2023 |
| Pagcor denied application | May 22, 2024 |
| Search warrant granted and operation | June 4, 2024 |
What it means for players
The Porac case sits inside a wider Philippine offshore gaming industry that PAOCC says now has around 49 licensed operators, most in Metro Manila, down from a period when "more or less 300 POGOs did not renew"1. Pagcor renamed the license category to Internet Gaming Licensees in October 2023, a change that weeds out service providers1. PAOCC says it has dismantled eight illegal POGO hubs1.
For anyone gambling in the Philippines, the case shows that some compounds operating under offshore gaming licenses have been linked to trafficking and torture allegations, and that enforcement has been hampered by warrant problems and suspected leaks1. PAOCC's Casio said the operators are "hiding in plain sight"1. The status of the workers seen leaving the compound, and of any charges arising from the June 4 operation, has not been reported.
What happens next
The Supreme Court will probe allegations that POGOs have infiltrated law enforcement and the judiciary, according to its spokesperson1. PAOCC seeks forfeiture of assets based on violations such as trafficking and torture after every raid1. No further court dates or outcomes in the Porac matter have been reported.
