The Philippine Amusement and Gaming Corporation said on its website in July 2024 that the country would "wind down" offshore gaming firms by the end of 20241. The move affects Philippine Offshore Gaming Operators, known as Pogos, and the foreign nationals who work for them.
Tens of thousands of Chinese citizens in the Philippines who help run offshore gambling services stand to lose their work visas by mid-October, according to a Tuesday report by Philippine digital media firm Rappler cited by the Bangkok Post1. Foreign nationals who work for Pogos were told to cancel their work visas voluntarily by October; otherwise Manila is set to do so for any foreigners enmeshed in such operations1.
More than 300,000 Chinese workers were employed by Pogos at the industry's height, but official estimates put the number of those legally employed in the sector this year closer to half that amount1. Analysts said many, if not most, visa holders working for Pogos come from China and work alongside Filipinos as well as citizens of third countries1.
Both Chinese and Philippine officials frown on the operations due to the suspected criminal acts they engender, a rare point of agreement between the two as sovereignty disputes rage over the South China Sea1. The Chinese Embassy in Manila said on its website in July:
"The Philippine offshore gaming industry breeds vicious crimes and seriously harms the interests of the two peoples."
The Philippine Bureau of Immigration said in July it had arrested a Chinese man who was already wanted by authorities in China for trafficking other citizens to work for online gaming establishments in the Philippines1. Eduardo Araral, associate professor at the National University of Singapore's public policy school, said illegal operations now "create trouble for the government" in the Philippines: "They don't pay taxes, they engage in human smuggling and they have their own police"1.
The prevalence of Pogos picked up after 2019 when Cambodia banned online gambling, according to the Centre for Strategic and International Studies1. The American think tank said gambling operations in Cambodia were the recipients of heavy investments by Chinese nationals1.
What it means for players
The wind-down targets the offshore operators that serve customers abroad, mainly in China, rather than the licensed casinos that serve tourists and locals in the Philippines. Players who use Pogo-run sites should expect those services to close or move as the year ends. The Philippines' ban on offshore gaming (POGOs) covers the licensed offshore sector, while online casinos in the Philippines and land-based gambling fall under separate rules. The closure also fits a wider pattern of crackdowns on offshore online gambling hubs in Asia, which has shifted where such operations base themselves and where their staff go.
Chinese who lose their Philippine visas are likely to seek work in casinos, real estate or other businesses in Southeast Asia, as they already "understand" the region, said Chen Zhiwu, chair professor of finance at the University of Hong Kong1.
What happens next
Foreign nationals working for Pogos were told to cancel their work visas voluntarily by October 2024, after which Manila is set to cancel them for any foreigners enmeshed in such operations1. The industry is to be wound down by the end of 20241. No further dated steps have been reported.
