53,700 POGO licenses had been canceled as of November 29, 2024, with 18 internet gaming licensees voluntarily surrendering their permits.
The ban on Philippine offshore gaming operators (POGOs), announced by President Ferdinand Marcos Jr., has brought to light numerous challenges for the government. Among these is the critical issue of managing assets such as buildings and lands seized from operations linked to alleged criminal activities associated with these gaming hubs. These confiscated properties now pose questions about their utilization and the legal framework governing them.
In recent months, lawmakers and officials have suggested various potential uses for these idle properties. Proposals have included converting them into evacuation centers, schools, or government offices. However, the process of repurposing these facilities is complicated by the lack of clear legal provisions that allow the state to temporarily use seized assets pending the resolution of forfeiture cases. Justice Undersecretary Nicholas Ty, who heads the Inter-Agency Council Against Trafficking (IACAT), emphasized this gap, particularly regarding resources that could be used to support victims of trafficking and POGO employees rescued during raids.
“[There is] an absence of a clear provision that expressly empowers [the] state [to] provisionally use assets pending forfeiture, especially money that can be used to maintain victims and facilities,” Ty was quoted as saying in an Inquirer report.
Although the Anti-Financial Account Scamming Act, signed into law in July 2024, aims to address this issue, IACAT is still awaiting its implementing rules and regulations. Meanwhile, the government has resorted to a "creative solution" by commandeering raided facilities to temporarily house thousands of trafficking victims.
According to IACAT’s records, more than 3,000 POGO employees have been rescued, with many presumed to be victims of human trafficking. Ty highlighted the lack of sufficient shelters for these individuals, noting that releasing them without proper care could lead to re-trafficking or revictimization. This makes the temporary use of confiscated facilities a practical, albeit legally ambiguous, solution.
The extent of seized properties remains unclear, as authorities have yet to release a comprehensive inventory detailing the total number of buildings, their floor area, land size, and estimated value. Moreover, no plans have been disclosed regarding inspections to determine the suitability of these properties for conversion into classrooms, offices, medical facilities, or evacuation centers while legal proceedings are ongoing.
President Marcos, who formalized the POGO ban in November through Executive Order No. 74, has set a year-end deadline to shut down all offshore gaming operations. He has also warned against "guerrilla" or rogue POGO and internet gaming licensees attempting to continue operations after their licenses are revoked. “We will never let them wreak havoc on us again. Anyone who attempts to launch illegal operations will face the full force of our laws,” Marcos said in a social media post following a meeting with key government officials, including Philippine Amusement and Gaming Corporation (PAGCOR) chair Alejandro Tengco and Interior Secretary Jonvic Remulla.
As of late November, Malacañang reported that 53,700 POGO licenses had been canceled, with 18 internet gaming licensees voluntarily surrendering their permits. By December 31, all licenses will be void, with the government aiming to declare the Philippines “POGO-free” by January 2025. Data from the Duterte administration showed that over 353,000 visas had been issued to foreign workers employed in POGO operations. However, this number has significantly dwindled, with recent figures indicating that only 33,863 workers remain, of which 23,099 have already left the country.
A significant portion of these workers, primarily Chinese nationals, initially entered the Philippines as tourists and later took up jobs in POGO establishments. Investigations into the “pastillas scam” revealed that the actual number of foreign workers, both legal and illegal, far exceeds the visas issued. This discrepancy underscores the broader issue of illegal employment and human trafficking within the sector.
The legal framework also presents challenges in identifying trafficking victims. Ty noted that many rescued individuals do not perceive themselves as victims, complicating efforts to provide assistance. Unlike traditional perceptions of trafficking victims as impoverished and uneducated, many of those rescued from POGO hubs are college graduates from middle-income families and are technologically savvy. This complexity highlights the evolving nature of human trafficking and the need for nuanced approaches to address it.
Ty also pointed out that under the Anti-Trafficking in Persons Act, the proceeds and instruments of human trafficking can be forfeited in favor of IACAT to benefit victims. However, implementing this provision requires overcoming significant legal and logistical hurdles. Authorities are also exploring the use of anti-corruption laws to prosecute enablers of trafficking, including complicit government officials.
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