Finance Chief Ralph Recto: POGO Ban Won’t Hurt Government Revenues

Finance Secretary Ralph Recto assured senators that the government’s revenue collection will remain on track despite President Ferdinand Marcos Jr.’s decision to phase out Philippine offshore gaming operators (POGOs).

During the August 13 Development Budget Coordination Committee’s briefing, Recto emphasized that the expected loss in tax revenue from POGOs was not a significant concern for the administration’s financial planning.

Senator Loren Legarda, a vocal advocate for banning POGOs due to their association with criminal activities such as kidnapping and cyberfraud, questioned Recto about the potential economic impact of the prohibition.

“We never considered the revenue from POGOs, which is just minimal,” Recto was quoted as saying in a report published by the Inquirer. He added that any impact on the economy would be negligible, and the long-term benefits of banning POGOs would outweigh any short-term losses.

Legarda concurred, stressing that the decision to eliminate POGOs would enhance the country’s image, improve peace and order, and strengthen national security. “Our image, peace and order, national security, and protection of the rights of our people—all of these—will be well worth it,” she said.

PAGCOR, the government agency responsible for regulating gambling in the country, had previously estimated that banning POGO operations could result in a loss of up to P7.5 billion in revenue. However, Recto reassured the Senate that this figure was not factored into the government’s revenue projections for the proposed P6.352-trillion national budget for 2025.

Moreover, Recto highlighted the strong revenue performance of the government in the first half of 2024. He reported that the government collected P2.15 trillion from January to June, a nearly 16 percent increase compared to the same period in 2023. The Bureau of Internal Revenue and Bureau of Customs contributed P1.84 trillion of this total, reflecting a 10-percent rise from the previous year.

“With higher government revenue collections and improved expenditure management, our fiscal deficit is projected to drop from 5.6 percent in 2024 to 3.7 percent by 2028,” Recto stated.