President Ferdinand Marcos Jr. directed the Philippine Amusement and Gaming Corporation (Pagcor) to ban Philippine offshore gaming operators (POGOs), a directive Pagcor chief Alejandro Tengco said he assumes covers the 43 Internet Gaming Licensees (IGLs) whose licenses will not be renewed1.
Tengco told radio DZBB on July 23 that he had not yet discussed the directive with the President, and that he only has jurisdiction over legally operating gaming enterprises, not underground ones1. Pagcor's Offshore Gaming Licensing Department lists 45 IGLs, two of which are suspended (Gambol Leisure and Amusement Inc. and Tritech Technology Corporation), leaving 43 operating as of July 161. Tengco said those 43 IGLs employ 31,000 Filipinos directly, with another 9,800 Filipinos working in business process outsourcing whose clients are gaming companies abroad, putting the total number of affected workers at around 40,000, excluding drivers, security guards, messengers and helpers employed indirectly1.
Presidential Anti-Organized Crime Commission spokesperson Winston Casio told Rappler that Marcos "banned offshore gaming, be they POGOs or IGLs," and said the two are the same1. PAOCC executive director Gilbert Cruz said an intelligence report submitted to the Department of Interior and Local Government found around 400 POGOs operating illegally nationwide, most in Metro Manila, and that these are operators whose licenses Pagcor did not renew1. Tengco said he fears many of the 250 POGOs banned last year now operate underground, and that shutting them down is a task for law enforcers and local government units1.
Finance Secretary Ralph Recto disclosed a Department of Finance cost-benefit analysis submitted to the President. It found POGOs bring about P166 billion a year in economic benefits while their economic costs reach more than P265 billion, a net cost of P99.52 billion a year1. The costs include an estimated P39.94 billion decrease in foreign direct investment due to crime, P15.42 billion from corruption perception, and P28.62 billion in lost inbound tourism revenue due to crime1. The DOF put foregone investment and tourism revenue at P111.83 billion, with the negative effect on tourism reaching P69.04 billion1. The analysis excludes social costs, which the DOF calls "unquantifiable"1.
"We find this fear unfounded as other similar sectors are more than capable of accommodating them given their technical skills, particularly in the business process outsourcing industry."
The DOF counted 66,547 employees in the POGO sector in 2023, of whom 25,200 are Filipinos and the rest foreign nationals1. Recto said the Department of Labor and Employment has funds and that he expects the 25,000 Filipino workers to find employment elsewhere1. National Economic and Development Authority Secretary Arsenio Balisacan said the benefits of banning POGOs outweigh the costs, and estimated POGOs contributed less than one half of one percent of gross domestic product as of 20221. POGOs made up a quarter of office space demand in 2019, falling to about 11%, according to Leechiu Property Consultants1.
What it means for players
The ban targets offshore operators that serve customers abroad, not domestic gambling. The 43 licensed IGLs will not have their licenses renewed, so any platform operating under those licenses is winding down. Players using offshore sites licensed in the Philippines face those sites closing or moving to another jurisdiction. Around 400 unlicensed POGOs are still believed to operate nationwide, mostly in Metro Manila, and the government says enforcement against them falls to police and local officials. Tengco said IGLs may apply to run land-based casinos or integrated resorts instead, which would require large investment. The status of deposits, withdrawals and accounts held with affected operators has not been reported.
What happens next
Tengco said he will meet the IGLs, who he said have no choice but to follow the President's order, and that the operators are to wind down operations until the end of the year1. Pagcor's only act to implement the ban is to not renew the licenses1. The PAOCC has sent its intelligence report to local government units and expects them to pursue illegal operators, and said it will press those that do not move1.
For more, see The Philippines' Ban on Offshore Gaming (POGOs), Can I Gamble in the Philippines? and Online Gambling in Asia: The Law for Players in 12 Jurisdictions.
Sources1 sources
- Which POGOs are affected by Marcos' ban?, rappler.com
