PAGCOR has raised concerns over offshore online gaming operators masquerading as business process outsourcing (BPO) companies.
The Philippine Amusement and Gaming Corporation (PAGCOR) has raised concerns over offshore online gaming operators (POGOs) disguising themselves as business process outsourcing (BPO) companies. PAGCOR emphasized the need for stringent measures to address these illegal operations.
“To effectively address illegal gaming operations [in the Philippines], companies that misuse the BPO designation must also be scrutinized and held accountable,” PAGCOR stated in a press release quoted by GGR Asia.
This issue gained prominence following the October 31, 2024 raid on Central One Bataan PH Inc., a company identified as a BPO. Local authorities suspected the firm of involvement in human trafficking and illegal online gaming activities, leading to legal debates over its operations.
Regulators fear that these companies are exploiting the vast BPO industry in the Philippines.
In its statement, PAGCOR clarified its jurisdictional authority over gaming activities. While the Authority of the Freeport Area of Bataan (AFAB) oversees certain tourism-related initiatives, its ability to regulate “games, amusements, recreational and sports activities” requires PAGCOR’s approval and supervision.
PAGCOR asserted: “While the Authority of the Freeport Area of Bataan may regulate specific activities and exercise authority within its jurisdiction, its power to issue licenses for gaming operations remains conditional and subject to PAGCOR’s oversight and approval.” Furthermore, the regulator noted that Central One Bataan is not licensed by PAGCOR to conduct online gaming activities.
In November 2024, Philippine President Ferdinand Marcos Jr. signed Executive Order No. 74, effectively banning Philippine Offshore Gaming Operators (POGOs) and Integrated Gaming Licensees (IGLs). The order aims to curb illegal gaming activities and address related issues such as human trafficking and money laundering.
Marcos emphasized the need to protect the nation’s interests and improve law enforcement in the gaming sector, while allowing certain exceptions for legitimate operations under strict guidelines.
Read related article: PAGCOR Denies Jurisdiction Over Raided BPO in Bataan
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