58% of Filipino Believes POGOs are Bad for the Nation, Survey Finds

January 30, 2023 Philippines iGaming & Gambling

58% of Filipino respondents in the Philippines, according to a survey quoted by the chair of a Philippine Senate Committee on Ways and Means, “indicated that they think the operation of POGOs in the country is damaging.”

The Pulse Asia survey, which was conducted between November 27 and December 1 of last year, indicated that some 1,200 respondents were aware of POGO operations, according to the country’s news agency.

The committee’s report on an examination of the advantages and disadvantages of the Philippine Offshore Gaming Operators in the nation will now be drafted using the survey data.

Only 19% of respondents allegedly said that the offshore operators were helpful, while 58 percent of respondents saying they thought POGOs were harmful.

According to respondents, POGO operations in the country were harmful to 61 percent in the National Capital Region, 55 percent in Luzon, 53 percent in Visayas, and 67 percent in Mindanao, in that order.

The most frequently cited justification was the spread of vices (ranked at 67 percent), followed by an increase in crimes related to POGOs “involving Chinese nationals” (ranked at 57 percent), the “increasing number of Chinese nationals employed by POGOs” (ranked at 43 percent), the lack of new opportunities for Filipinos (ranked at 33 percent), and the rising cost of rent (22 percent).

The committee chair cited data showing that 43% of respondents believed the operators were damaging due to tax avoidance as justification for the committee’s investigation into the potential tax liabilities of POGOs, which will be detailed in its report.

The committee did not specify whether the survey had been ordered or who might have ordered it, and the senator who is the committee’s chair has not made an official release of the survey.

The poll was conducted following a contentious debate in the Senate earlier this week, during which senators urged the gaming watchdog and the country’s largest casino operator, PAGCOR, to take more severe action against non-compliant POGOs.

While the chair of the Ways and Means Committee asserted that there were more grounds to outright outlaw POGOs than to permit them to function in the country, senators contend that PAGCOR’s position in collecting money from the operators constitutes a “conflict of interest.”

Last Monday, the president of the Philippines stated that a complete ban might be enacted if it is decided that the operations of POGOs are no longer helpful.

Following the discussion, PAGCOR issued a statement of its own to refute claims made by the committee head, including that the number of kidnappings had increased. It noted that “no reported criminal activities or kidnapping-related incidents of workers in the offshore licensing industry have occurred for over three months.”

The fact that POGOs employs “an estimated 25,000 Filipinos” and “contributes billions of pesos to the local economy” was another reason why PAGCOR remained strong in support of the company’s continuing operations in the nation.

It stated that it “believes it has much more to offer to the development of the Philippine economy and nation.”

Economic impacts
After reporting a better-than-expected 7.6 percent full-year growth in 2022, house leaders have expressed high confidence in the economy’s recovery in 2023. However, the potential effects of a comprehensive ban on POGOs could have an adverse effect on their optimism.

Businesses “are spending” and “their expenditures for those investments reflected nicely on the data,” according to another leader of the House Ways and Means Committee.

The business sector is positive about the need for increased production in the upcoming years, he continued. In 2023, don’t wager against the Philippines.

The Philippines is currently leading among Asian countries that have already published their GDP figures as the fastest-growing economy, surpassing both Vietnam and China, the chair said, noting that the nation has a “service-driven economy.”

According to a different statement made by a labor official, any foreign or Filipino employees of POGOs who would be impacted by the closing of their businesses are entitled to benefits, including separation compensation (equal to one month’s salary for every year of service) and unemployment insurance (provided by the social security system).

To facilitate those who have been laid off in finding comparable employment, the Department of Labor has also put in place an employment facilitation program.

According to Labor Undersecretary Benjo Benavidez, if POGOs stop operating in the country, an estimated 25,000 workers, the majority of whom are customer care representatives or dealers/agents, could be impacted.