Raid in BPO Accused of POGO Operations Sparks Debate Over Enforcement Limits

November 4, 2024 Philippines Crime & Legal

Licenses issued by freeport and economic zones remain in a gray area, as President Ferdinand Marcos Jr. has yet to issue an executive order for his directive to shut down all Philippine Offshore Gaming Operators (POGOs) by the end of the year.

Rappler’s article indicated that multiple sources have confirmed this, following the recent raid in the Central One Bataan Inc. in Bagac town on October 31, 2024.

Central One is situated within the Bataan Freeport, highlighting the misuse of freeport use for offshore gaming. The Authority of the Freeport Area of Bataan (AFAB) argued that Central One does not need to secure a permit from Philippine Amusement and Gaming Corporation (PAGCOR).

“This raid is tangible proof that some investment promotion areas are being abused to allow offshore gaming activities that are bordering on scamming activities,” Presidential Anti-Organized Crime Commission (PAOCC) spokesperson Winston Casio was quoted as saying in the Rappler report.

Interior Secretary Jonvic Remulla said however that no EOs are “necessary” to press on with operations against POGOs in the said areas.

The structure allows these zones to function semi-independently, yet also poses challenges for centralized government regulation and oversight, especially concerning gambling and potentially illegal activities.

Economic zones and freeports in the Philippines enjoy a degree of autonomy to foster investment and economic growth within specific areas, often through special regulatory frameworks.

This autonomy allows them to issue licenses, including those for offshore gaming operations, under unique charters tailored to attract foreign businesses and offer them favorable conditions, like tax incentives and flexible regulatory oversight.