In 2016, PAGCOR reshaped the offshore gaming landscape by launching the POGO framework, offering operators more favorable conditions.
Santa Ana, Cagayan—a municipality once recognized as the cradle of interactive gaming in the Philippines—is grappling with the economic fallout following the government’s decision to ban Philippine Offshore Gaming Operators (POGOs).
In an interview with the Philippine Star, Mayor Nelson Robinion revealed that the closure of these facilities could lead to the loss of up to 2,000 jobs and livelihood opportunities, leaving many residents uncertain about their future.
The town’s economy, heavily reliant on the gaming sector, is expected to shrink significantly. Workers, many of whom relocated to Santa Ana for job opportunities, now face challenges as the local job market struggles to absorb the displaced workforce. This decision has created an atmosphere of uncertainty for his constituents, said Mayor Robinion.
The move to shut down POGOs follows the issuance of Executive Order 74, which mandates the cessation of all offshore gaming activities under the jurisdiction of the Cagayan Economic Zone Authority (CEZA). CEZA, responsible for managing the Cagayan Special Economic Zone and Freeport in Santa Ana, has been instructed to revoke all POGO licenses and ensure the complete termination of their operations.
Established in the early 2000s, Santa Ana’s gaming industry was a pioneer in Asia, introducing the concept of regulated interactive gaming. Dindo Danao, a former public relations consultant for CEZA, recalled how the municipality became a hub for foreign investments through its innovative licensing framework for offshore gaming operators. “It was a unique marketing strategy that positioned Santa Ana as a leader in regulated gaming,” Danao explained.
Interactive gaming—or “i-gaming”—played a crucial role in the development of Santa Ana. CEZA’s initiatives helped fund key infrastructure projects, including the construction of an international airport and a cyber village, bolstering the municipality’s reputation as a growing economic zone.
“It was a unique marketing strategy," Danao pointed out, as he recalled that dozens of operators once called CEZA home, fueling local employment and economic activity.
However, the industry’s landscape shifted dramatically in 2016 when the Philippine Amusement and Gaming Corporation (PAGCOR) introduced its POGO framework. Offering more favorable conditions for operators, PAGCOR’s centralized system drew many companies away from CEZA, leaving the latter struggling to maintain its market share. According to Danao, this shift was a turning point for Santa Ana, emphasizing the challenges CEZA faced in retaining its competitive edge.
With the recent ban on POGOs, the municipality now faces even greater economic difficulties. “Once a thriving industry providing jobs in customer service, logistics, security, and support roles, the departure of POGOs has left thousands of Santa Ana residents unemployed,” Danao said.
The ripple effects of the shutdown are expected to extend beyond job losses. Local businesses that relied on the gaming industry’s workforce for customers are also bracing for a downturn. Restaurants, housing rentals, and transportation services—all integral parts of the town’s economy—are anticipated to experience significant declines in revenue.
Adding to the municipality’s challenges is the difficulty of finding alternative industries to fill the economic void left by the gaming sector. While Santa Ana has potential in tourism and agriculture, developing these industries to the level necessary to offset the losses will take considerable time and investment.
Santa Ana’s situation serves as a stark reminder of the risks associated with dependence on a single industry. For years, the municipality’s economic growth was tied to the success of interactive gaming. Now, with the industry gone, the town must confront the harsh reality of rebuilding its economy from the ground up.
Despite the challenges, there is some optimism that the municipality can recover in the long term. Local leaders are calling for greater support from the national government to develop alternative economic opportunities and provide assistance to affected workers. Proposals include retraining programs, investment in infrastructure to attract other industries, and promotional campaigns to boost Santa Ana’s tourism potential.
Read related article: Total POGO Ban in the Philippines Takes Effect
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