Marcos Enforces POGO Ban in Philippines with Executive Order 74

Philippine President Ferdinand Marcos Jr. has enacted a definitive ban on Philippine Offshore Gaming Operators (POGOs) through Executive Order 74, signed on November 5, 2024. This action follows his strong stance against POGOs expressed in his State of the Nation address in July, where he highlighted the sector’s links to crime and corruption. Under this executive order, all POGO operations and their auxiliary services must shut down by December 31, 2024. The directive applies to all POGO entities, including licensed operators, support services, and technology providers, effectively halting the industry in the Philippines.

Comprehensive Ban to Address Crime and Financial Risks

Marcos justified the ban, citing concerns over national security and financial stability. The executive order emphasizes that POGOs have been implicated in various forms of crime, including online scams, money laundering, and reputational damage that could hinder foreign investment and tourism. For the past two years, the Philippines has been working to remove itself from a global grey list of countries flagged for money laundering risks, and the government believes eliminating POGOs is essential to this effort.

The President has made it clear that the executive order alone should be sufficient to prevent any resurgence of these operations. He expressed confidence that the nature of the ban, which prohibits all offshore gaming activities associated with POGOs, closes off potential avenues for future POGO licenses or similar offshore gaming permits. “There’s just no way… because it’s the nature of the operation that we are banning,” Marcos affirmed in a recent statement.

Debate on Legislative Action and Potential Loopholes

However, some lawmakers, including Senator Risa Hontiveros, have voiced concerns over potential gaps in the executive order. Hontiveros, who chairs a committee overseeing POGO issues, questioned whether certain gaming activities within licensed casinos and integrated resorts might still operate under the guise of POGOs, particularly in special economic zones where regulations might be more lenient. She called for clarification on whether the ban excludes online games of chance conducted in venues managed by the Philippine Amusement and Gaming Corporation (PAGCOR).

Responding to these concerns, President Marcos reiterated that the ban applies universally to all POGO-related operations, regardless of location or licensing authority. He dismissed the need for additional legislation, arguing that the executive order alone addresses ambiguity, thereby ensuring that POGOs or similar entities cannot operate under different licensing schemes.

Economic Implications and Future Enforcement

Senator Sherwin Gatchalian, a vocal opponent of POGOs, has advocated for repealing tax legislation on POGOs to prevent their potential return under future administrations. He contends that without legal amendments to eliminate POGO-specific tax provisions, future administrations might face challenges in enforcing the current ban.

Under EO 74, all current licenses and permits related to POGOs will be invalidated after December 31, 2024. To further enforce the ban, two technical working groups comprising representatives from various government departments will be established to oversee the orderly wind-down of POGO operations. These groups are tasked with coordinating the cessation of all activities linked to POGOs, ensuring full compliance with the executive order.

The executive order’s strict measures represent a significant step toward Marcos’ goal of eradicating all offshore gaming activities that compromise the nation’s security and economic integrity. Through this decisive action, the Philippine government aims to end the country’s association with POGOs and establish a more secure and stable environment for both local citizens and foreign investors.

Source:

1. “Philippines President Marcos says no need for new law banning POGOs”, Inside Asian Gaming, November 13, 2024.
2. “PBBM Refutes Alleged Loophole in EO 74, Reiterates POGO Ban in All Forms”, Presidential Communications Office, November 11, 2024.