Authorities raided a gaming hub in the Bataan freeport area on Thursday, October 31, 2024, according to Rappler. The facility holds a license from the Authority of the Freeport Area of Bataan (AFAB) as a special class business process outsourcing1.
The Presidential Anti-Organized Crime Commission (PAOCC) said the raid showed how freeport and economic zone licenses are being used. "This raid is tangible proof that some investment promotion areas are being abused to allow offshore gaming activities that are bordering on scamming activities," PAOCC spokesperson Winston Casio said1. Casio added that it is "crucial that the national government works to address this whole gap"1.
The raid comes as the status of gaming licenses issued outside the Philippine Amusement and Gaming Corporation (Pagcor) remains unresolved. President Ferdinand Marcos Jr. ordered a ban on Philippine offshore gaming operators (POGOs) in July 2024, but has not issued an executive order, leaving internet gaming licenses (IGLs) issued by freeport and economic zone authorities in what Interior Secretary Jonvic Remulla called a "gray area"1.
"IGLs (internet gaming licenses) issued by the different agencies are still a gray area until the President makes a direct order. Meanwhile we will concentrate on the legal and illegal POGOs."
Remulla said no executive order is needed for Pagcor-licensed operators: "All POGO licenses issued by Pagcor are deemed canceled by December 31"1. A Pagcor source told Rappler the agency was waiting for an executive order1.
Pagcor chairperson Alejandro Tengco told a Senate hearing in July that AFAB is covered by the ban by virtue of its charter, while the Cagayan Economic Zone Authority (CEZA) is a special case because its charter gives it sole power among export processing authorities to issue licenses for any kind of gaming operations1. Tengco had previously said the Aurora Pacific Economic Zone and Freeport Authority (APECO) has no licensing operations, and that AFAB needs Pagcor approval before issuing licenses1.
| Authority | Licensing position as described by Pagcor |
|---|---|
| AFAB (Bataan) | Covered by the ban; needs Pagcor approval to issue licenses1 |
| CEZA (Cagayan) | Special case; charter allows it to issue its own gaming licenses1 |
| APECO (Aurora) | No licensing operations1 |
Rappler reported that the POGO design is multi-layered, with many companies under that umbrella registered on paper as BPOs1. Solicitor General Menardo Guevarra told Rappler that Tengco had not referred the matter to him1. Rappler said it reached out to Malacañang and that Communications Secretary Cesar Chavez had not responded as of publication1.
What it means for players
The raid does not by itself change what is legal for players in the Philippines. Pagcor-issued POGO licenses are treated as canceled by December 31, 2024, while licenses issued by freeport and economic zone authorities remain undefined until the President issues a direct order1. For anyone using an operator that holds a zone-issued license rather than a Pagcor license, the regulatory position has not been settled in writing. The Crackdowns on Offshore Online Gambling Hubs in Asia page tracks similar enforcement actions across the region, and Gambling Regulators and Licenses in Asia: Who Licenses What and How to Check explains how to identify which body issued a license. General rules for the country are set out in Can I Gamble in the Philippines?, with the wider regional picture in Gambling Laws in Asia: What Is Legal in 12 Jurisdictions.
What happens next
The Bureau of Immigration is downgrading the visas of foreign workers who applied for visas to work in a POGO hub. Workers may voluntarily downgrade from a work visa to a temporary visitor visa, which allows them to stay 59 more days "to wind down their affairs," Immigration Commissioner Joel Anthony Viado said in early October1. "Workers who fail to leave the country by December 31, 2024, will face deportation proceedings and be blacklisted from re-entering the Philippines," Viado said1. Whether the ban and the deportation measures also apply to CEZA has not been resolved in the absence of a written order1.
