Here’s what to expect as the Philippines ushers in a total ban on its offshore gaming industry.
The Philippines officially entered a new era on January 1st, 2025, with the complete ban on Philippine Offshore Gaming Operators (POGOs) taking effect.
This move by the Marcos Jr. administration follows a period of decline in the industry, with the number of licensed POGOs dropping from a peak of around 300 to a mere 17 by December 2024.
The POGO ban–ordered by President Ferdinand R. Marcos Jr. during his State of the Nation Address in July 2024–was implemented to address the rising number of crimes linked to offshore gaming operations.
Authorities have reported incidents of human trafficking, money laundering, and financial scams tied to POGOs. The ban's impact will be felt across various sectors. Here's a breakdown of what to expect:
Economic Impact
While the Department of Interior and Local Government (DILG) downplays the economic impact, with estimates suggesting only a 0.25% dip in GDP, the closure will result in job losses.
Thousands of Filipinos previously employed in POGO-related businesses, from security guards to cleaners, will need to find new opportunities. The government has assured it will implement "revenue-enhancing measures" to compensate for lost income.
Crackdown on Illegal Operations
With licensed POGOs out of the picture, authorities will likely shift their focus towards cracking down on illegal operations. The Philippine Amusement and Gaming Corporation (PAGCOR) anticipates a rise in "guerrilla POGOs" – smaller, unregulated operations. The Philippine National Police Anti-Cybercrime Operations Center (PAOCC) has already warned of this possibility and is prepared to address it.
News outlets like the Philippine Daily Inquirer reported on intensified efforts to seize assets of previously operating POGOs suspected of illegal activity. Additionally, the government is expected to conduct a "purge" of birth records, potentially uncovering fraudulent registrations used by POGOs in the past.
“At this time we have no definite figures on the aggregate value of these assets. The first order of the day is to take possession of and control over them,” Solicitor General Menardo Guevarra said in a statement quoted by the Philippine Daily Inquirer.
Following the full ban on POGOs in the Philippines at the end of 2024, the Office of the Solicitor General (OSG) will begin a comprehensive inventory of their assets, according to government newswire Philippine News Agency.
This includes canceling fraudulently obtained birth certificates of foreign nationals and forfeiting illegally acquired properties, which may include significant real estate holdings. While the total value of these assets is currently unknown, the OSG's initial focus is on securing and controlling them. Investigations have revealed instances of Chinese nationals using fake birth certificates to obtain Filipino citizenship, allowing them to establish corporations and acquire properties for illicit activities like drug trafficking.
The government aims to expedite the process of seizing these assets, acknowledging the current legal process is slow. Both the Senate and House are considering legislation to authorize the immediate forfeiture of all POGO assets to the government, including buildings, equipment, and proceeds from illegal operations.
The success of the ban hinges on the government's ability to effectively crack down on illegal operations and provide alternative job opportunities for those affected. While the economic impact is predicted to be minimal, the social benefits could be significant, paving the way for a more regulated and transparent gaming industry in the Philippines.
Read related article: Manhunt to be Launched For Overstaying Foreign POGO Workers
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