The Philippines is on the brink of a major shift in its gambling landscape as the government prepares to issue an Executive Order (EO) banning all Philippine Offshore Gaming Operators (POGOs). According to Gilbert Cruz, Executive Director of the Presidential Anti-Organized Crime Commission (PAOCC), the order is expected to be released within two weeks. This move follows a series of public outcries and legislative actions aimed at curbing the rise of illegal activities associated with POGO operations.

A Timeline for the Ban

The anticipated executive order is part of President Ferdinand Marcos Jr.’s commitment to address growing concerns about POGOs. In his July 2024 State of the Nation Address (SONA), Marcos declared, “Effective today, all POGOs are banned.” This announcement sent a clear message that the government is taking decisive steps to combat the criminal elements linked to offshore gambling. The upcoming EO will formalize the ban, which will be enforced by relevant authorities, including the PAOCC and the Philippine Amusement and Gaming Corporation (PAGCOR).

While the exact implementation details are still being worked out, Cruz mentioned that a technical working group would be formed to handle the nuances of the ban. This group will evaluate whether entities such as Business Process Outsourcing (BPO) firms, which provide support services to offshore gaming companies, will be affected by the new regulations.

Legislative Push to Ban POGOs Permanently

Senator Sherwin Gatchalian, a leading voice in the fight against POGOs, continues to push for legislation to ensure a permanent ban on the industry. Despite the impending EO, Gatchalian is seeking to future-proof the ban by drafting a law that would institutionalize the prohibition of POGO operations.

“We will clearly define what is POGO, what are the businesses associated with POGOs […]

we will include all that in the law so that it will be institutionalized. Whoever is the sitting president, these POGOs cannot be allowed to operate again because there is already a law against them,” Gatchalian explained during a recent Senate Committee hearing.

Gatchalian has also expressed concerns aboutPhilippines Inland Gaming Operations (PIGOs), which cater to local bettors. He noted that current regulations for PIGOs have loopholes that allow minors and individuals using fake identities to open gaming accounts. This, he warned, creates opportunities for money laundering and other illegal activities. The senator is advocating for stricter controls on PIGOs to prevent them from becoming the next hotbed for criminal activity.

Cracking Down on POGO-Linked Crimes

The push to ban POGOs comes amid ongoing investigations into criminal activities connected to the industry. High-profile cases, such as the arrest of Bamban Mayor Alice Guo, who was allegedly involved in operating illegal POGO facilities, have underscored the urgency of the crackdown. Guo, a Chinese national, was apprehended in Indonesia and is now facing charges in the Philippines, including money laundering and human trafficking.

The PAOCC is also probing allegations of a mass grave linked to the Lucky South 99 POGO facility in Porac, Pampanga. These claims have sparked outrage and added to the mounting evidence of the dark side of POGO operations. PAOCC spokesman Winston Casio confirmed that a search warrant has been secured to investigate the site, following concerns raised by foreign embassies and the families of missing workers.

The End of POGOs in the Philippines

The forthcoming executive order marks a critical step toward eliminating POGOs from the Philippines. Once implemented, it will effectively end offshore gaming operations that have been tied to various forms of criminality, including financial fraud, human trafficking, and even murder.

President Marcos’ administration is committed to ensuring that POGO operators comply with Philippine laws and international standards. However, the government also recognizes the need to address the potential economic impact of the ban, as POGOs have contributed significant revenue in past years. While there may be short-term losses, the focus remains on protecting the welfare of Filipinos and preventing the country from being a hub for illegal gambling activities.

As the countdown to the EO begins, many stakeholders are waiting to see how the ban will reshape the gambling industry in the Philippines. The government’s approach to addressing the loopholes in other sectors, such as PIGOs and special BPOs, will also play a key role in ensuring a smooth transition to a cleaner, more regulated gaming environment.

Source:

Executive Order banning POGOs expected in two weeks, Senators still pushing other bills to ban operations, Asia Gaming Brief (AGB), September 13, 2024.

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