The Senate continued its hearing in Pasay on Wednesday, June 26, into the owners, incorporators and operations of raided Philippine Offshore Gaming Operators (POGOs) in Bamban, Tarlac and Porac, Pampanga1. Merlie Joy Castro, a vendor turned BPO worker from Concepcion, Tarlac, told senators she never signed any document and did not know how to incorporate a company1.
Castro was named one of the five owners when Hongsheng Gaming Technology incorporated in 2020 in Bamban, Tarlac, with an initial investment of P375,0001. The company set up as an offshore gaming operator in a compound owned by Baofu, the real estate firm incorporated in 2019 by suspended Bamban Mayor Alice Guo1. Castro said her signature on the Securities and Exchange Commission records was forged, and the Bureau of Internal Revenue verified on the spot that the Tax Identification Number used for her in those records does not exist1. She said she knows the three other Filipino co-owners as market vendors in Concepcion:
- Rowena Evangelista, who sells vegetables1
- Thelma Laranan, who sells breakfast1
- Rita Yturralde, who sells grilled chicken1
Senator Sherwin Gatchalian showed photographs of the three women's homes as listed in the SEC records, all modest, and said they did not look like the homes of POGO investors1. He asked the Philippine Amusement and Gaming Corporation (Pagcor) why its probity check had not caught this. Jessa Mariz Fernandez, Pagcor's assistant vice president for offshore gaming licensing, said the agency used to outsource its probity check services, which entailed checking documents1.
Gatchalian also questioned Porac, Pampanga Mayor Jaime Capil over Lucky South 99, a POGO connected to Hongsheng through Dennis Cunanan, a former government official convicted for graft in the pork barrel scam and the representative of both firms to Pagcor when they applied for licenses in 20201. Local police in Porac requested to inspect the Lucky South compound, which Capil sanctioned in August 2023, but they were barred entry; Capil said they could not trespass without a search warrant1.
The Presidential Anti-Organized Crime Commission (PAOCC) told the Senate it holds 14 foreigners treated as persons of interest who could lead investigators to the masterminds, and is hunting three more, including Katherine Cassandra Ong, who transacted for both Hongsheng and Lucky South1.
"These are not ordinary money launderers, these are transnational criminals with records dating back decades in China, Hong Kong and Macau."
Senator Risa Hontiveros, who leads the probe, said the committee is uncovering a deep and deadly web of bad actors involving international criminal syndicates, local and national politicians and possibly malevolent elements of a foreign state1. Senator Grace Poe reiterated the call to ban POGOs1.
What it means for players
The hearing concerns offshore gaming operators licensed to serve customers abroad, not domestic casino or online betting sites, and no finding has been reported that changes the rules for ordinary gamblers in the Philippines. The testimony centers on how POGO licenses were granted and who was named on corporate records, which is relevant to anyone assessing how tightly gambling businesses in the country are screened. For background on the sector and its legal status, see Can I Gamble in the Philippines? and The Philippines' Ban on Offshore Gaming (POGOs). The allegations of forged identities and barred inspections also illustrate the kind of documentation fraud that appears in gambling-related scams; see Gambling Scams and Safety in Asia.
What happens next
Hontiveros said the committee has yet to determine whether it is necessary to invite former president Rodrigo Duterte to the POGO hearings1. PAOCC said it is still tracking the "big boss" behind the operations and could not be confident of pinning him down1. Senators reiterated their call for President Ferdinand Marcos Jr. to treat POGOs as a security threat and ban them1.
