PCSO Urged to Consider Using e-Sabong to Offset Revenue Loss from POGO Ban

In light of the government’s decision to ban Philippine offshore gaming operators (POGOs), a new proposal has emerged to tap into another gambling industry: sabong, or cockfighting. House Deputy Speaker Jay-jay Suarez suggested regulating both online and offline cockfighting to recoup some of the lost revenue, which is estimated at P7 billion. This suggestion was made during the appropriations committee’s August 6 deliberations on the proposed 2025 budget for the Philippine Charity Sweepstakes Office (PCSO).

Suarez emphasized the potential of the cockfighting industry, describing it as a “billion-dollar industry” that the government could benefit from by properly regulating its operations. He pointed out that while e-sabong (online cockfighting) continues to operate illegally, the government is missing out on potential earnings. The idea is to create a system where the PCSO or another appropriate agency can oversee and regulate these activities, ensuring that the government can generate revenue from them.

“The problem is government is not earning because they [online sabong] are operating illegally,” Suarez was quoted as saying in a report published by GMANetwork. “So the question is now for us, how can we properly stop this, regulate it, and put it in such a way where government can earn income?”

PCSO Chairperson Felix Reyes noted that there is currently no clear mandate on which agency should regulate sabong operators.

“Sa ngayon, wala pong malinaw na batas kung sino ang may mandato upang mamahala rito. Pero siguro ay magandang suriin natin kung sino ang mas may higit na kakayanan. Is it PAGCOR o ang PCSO?” said the PCSO chairman, referring to the Philippine Amusement and Gaming Corporation.

Reyes suggested that PCSO could potentially handle these operations, given their experience with managing lottery bets through authorized outlets.

“Pero siguro kasi mayroon kaming kasanayan ng pagbebenta o page-entertain ng pagtaya on a permanent outlet dahil mayroon kaming lotto. Siguro kung sa amin ‘yan ibibigay, may kasanayan na pamamahala, kung iyon ay pahihintulutan.

“Kung ito ay remote cockfighting, na kung saan ay kagaya ng nabanggit ninyo na OTB, na ang taya ay sa pamamagitan lamang ng mga tinatawag na off-cockpit betting, na ginagawa sa off-cockpit betting station. Puwede rin po sa loob ng sabungan, tinatawag nila in-cockpit betting station.

Suarez highlighted the ongoing issue of illegal online sabong. He questioned how the government could regulate this activity and ensure it generates income. Suarez proposed the idea of off-track betting (OTB) for cockfighting, similar to horse racing, without involving any online apparatus.

Reyes supported this idea, suggesting the establishment of off-cockpit betting stations and in-cockpit betting stations. He emphasized that PCSO could leverage its existing infrastructure and experience to manage these betting platforms effectively. Additionally, PCSO is exploring new variants of lottery games, such as “Lotto Bilyonaryo,” to increase their revenue streams.

Suarez pointed out that at least 25,000 Filipino workers could lose their jobs because of the POGO ban.

President Ferdinand Marcos Jr. announced the total ban on POGO operations during his third State of the Nation Address in July. This decision followed a series of Senate hearings led by Senator Risa Hontiveros, which uncovered various criminal activities linked to POGO hubs. Despite the revenue generated by POGOs, the president’s economic managers believe that the benefits of eliminating these operations outweigh the costs, as they contribute less than 0.5% of the country’s gross domestic product as of 2022.

However, the ban on POGOs is expected to have significant repercussions, including the loss of at least 25,000 Filipino jobs. To mitigate these effects, the government is considering alternative revenue sources like regulated cockfighting.

Despite the suspension of e-sabong operations formalized by Marcos in December 2022, illegal online cockfighting activities have persisted. Government data estimates that there are still around 789 active e-sabong operators as of February 2023. These operations have been linked to various criminal activities, including the abduction of at least 34 individuals involved in the online gambling activity.

The government faces the challenge of curbing these illegal activities while exploring legitimate avenues to regulate and monetize the sabong industry. By studying and potentially implementing systems for regulated cockfighting, the government aims to recover some of the revenue lost from the POGO ban and address the ongoing issue of illegal gambling operations.

Read related article: All POGOs banned in PH by President Marcos

Source: GMA NEWS