As a result of a recent raid on a Pasay City building located along Williams Street conducted by a task force under the leadership of the Presidential Anti-Organised Crime Commission (PAOCC) together with the Department of Justice, law enforcement officers in the Philippines have set free 731 workers. 

Most of them were Chinese, along with seven Filipinos, and other foreign workers. 

Operating Under Different Names

The operation was initiated after Makati Regional Trial Court Branch 35’ judge Maricris Pahate-Felixs issued a search warrant against operators Caic and Tein.

Smart Web was one of two Philippine Overseas Gaming Operation (POGO) companies that had their licenses revoked by the Philippine Amusement and Gaming Corp. (PAGCOR). It was later discovered that the POGO company had chosen a different business name and was still offering its services to clients. 

The same company also had a new PAGCOR IGL, which is an Internet Gaming License issued to all offshore gaming companies accredited or issued a license to operate in the Philippines.

According to PAOCC, PAGCOR’s staff had failed to thoroughly assess the respective area after the guards on the site prevented the inspection team from doing its job. 

Senator Joel Villanueva was curious to know how the respective companies were still able to offer their services in spite of having their permits revoked. Villanueva called for an outright ban on businesses with close ties to criminal activities.

The head of the Senate Committee on Ways and Means, Sherwin Gatchalian recommended that POGOS would be immediately kicked out from the Philippines while also denouncing the gambling industry’s alleged ties with sex trafficking and sex slavery.

Gatchalian further added that PAGCOR failed to keep a close eye on the sector and that completely banishing the trade would be the only viable solution to stop the criminal activities connected to it.

Police data speaks about over 4,000 reports of POGO-related crimes, including human trafficking and kidnapping during the first six months of 2023. During the same period, authorities in the Philippines conducted 41,000 arrests tied to illegal gambling out of 50,000 nationwide police operations.

Criminal Charges and License Revocation Ahead

According to a PAOCC statement on the matter, as a consequence of the “abundance of evidence pointing to sex trafficking on said site,” the next step of the process will be the completion of an onsite inquest hearing necessary for filing criminal charges. 

During the raid on the self-contained operation, two male Chinese workers identified with the initials S.N. (27), and L.H.Y. (22) reached out to government officers and claimed they had been kept against their will at the premises. The two men also showed the authorities signs of physical torture on their bodies.

S.N. said he had been allegedly kidnapped and sold five months earlier for the amount of PHP500,000 ($10,000) from another POGO operation. L.H.Y. claimed he was being held there against his will for over a year and forced to work for 15 hours a day.

The 731 workers were rescued from the second floor of the building, where they were found in an aquarium-style viewing chamber part of a massage parlor. 

The authorities made six arrests during the raid, with charges of human trafficking and torture.

PAOCC also stated they would recommend that Smart Web Technology Corp.’s temporary license as an IGL operator be revoked on grounds of enabling human trafficking at their facility. 

The building, together with the rest of the assets under the ownership of Smart Web will also be referred for freezing and likely confiscated since they represent “illegal gains.” 

In August, the national police announced a nationwide crackdown on illegal cockfighting gambling which led to 1,245 individuals being placed under arrest.

In July, PAGCOR announced its intentions to clamp down on offshore gaming service providers with ties to human trafficking and cryptocurrency scams by raiding a suspect business in Las Piñas City in Metro Manila. 

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Bullish on exiting the Financial Action Task Force (FATF) grey list, the Philippine government ordered 44 government agencies to update their policies. As a result, a number of authorities, including the PAGCOR, will be required to review their anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.

Under a Memorandum Circular No. 37, issued by the Office of the President, government organizations will need to address the deficiencies that led to the Philippines’ inclusion in the FATF grey list.

For reference, the Philippines was included in the list back in 2021 for failing to properly counteract money laundering. The lax controls concerning casino junkets and the deficient information sharing between financial institutions were among the chief reasons for the greylisting.

The Memorandum Circular calls for urgent implementation of the National AML, CTF and Counter-Proliferation Financing Strategy (NACS) 2023-2027. In its announcement, the government emphasized its desire to crack down on fraud. The country hopes to exit the FATF grey list by January 2024.

The Philippines Hopes to Exit the FATF Grey List Quickly

The Memorandum prioritizes quick action, in accordance with the NACS and FATF’s International Co-operation Review Group (ICRG) Action Plans. The Memorandum Circular also establishes an ML/TF NRA Working Group that will have nine subgroups dedicated to different aspects of the NRA.

The ML/TF NRA Working Group will be led by the Anti-Money Laundering Council (AMCL), which will also be responsible for issuing guidelines and coordinating with other departments, agencies and private sector entities. The announcement said that funding for the initiative would be allocated from relevant agency budgets, in accordance with the applicable regulations.

The Memorandum Circular takes effect immediately, attesting to the Philippines’ desire to exit the FATF grey list as soon as possible.

Earlier this month, China agreed to help the Philippines crack down on illegal offshore gambling. This followed a recent joint action between the two countries that led to the repatriation of 400 Chinese nationals.

Speaking of that, in September, China joined forces with ASEAN and the United Nations Office on Drugs and Crime for a new initiative that seeks to combat transnational criminal activities.

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Recently, OKBet Infinity, the popular Philippine junket operator that operates VIP rooms in Newport World Resorts, Okada Manila, Hann Casino Resort, NUSTAR and City of Dreams Manila, confirmed that it has shut down all of its Philippines VIP rooms. The company unveiled the surprising announcement, confirming that it is in effect as of August 8, 2023.

However, amid media reports claiming that the closures were related to people that were arrested over alleged money laundering, OKBet released a new statement. Earlier this week, the company rejected claims that the 10 people, arrested in Singapore over money laundering and forgery, were related to the closures.

Media reports said that at least one of the people that was involved in the crimes was a “top official from OKBet.” The company disagreed with that statement and explained that the closures of its Philippines VIP rooms were “purely business driven.”

The Singapore Police Force said that it acted based on intelligence that included Suspicious Transaction Reports (STRs) which resulted in identifying a group of individuals that was believed to be involved in financial crimes such as money laundering. The law enforcement outlined that the group was suspected of laundering illegally obtained funds from criminal activities, including online gambling and scams.

Besides confirming that the decision to close its operations in the Philippines was a business one, the company reiterated that the closure isn’t tied in any way to the legal matter in Singapore. OKBet said its VIP rooms were committed to integrity and adhering to the established regulations. Additionally, the company highlighted that its clubs have been renowned for the unique luxurious experiences they offer to their visitors.

“The statement aims to clarify that the closure is not related to any legal issues in Singapore or any other specific jurisdiction. Throughout its operations, OKBet VIP Club has maintained a commitment to the highest standards of legal compliance and operational integrity,“

reads a statement released by OKBet Infinity

In its initial statement, OKBet said that its board of directors decided to cease operations. The company pointed out that its members will be allowed to withdraw their funds without interruptions.

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Hundreds of thousands of drivers in Maryland bear registration plates with a link to what seems to be a site commemorating the War of 1812. However, locals found out that the link is related to an offshore casino.

About 15% of all registered vehicles (around 798,000) in the state bear plates that commemorate the war. In addition to mentioning the occasion and sporting an American flag and some fireworks, these license plates also have a link to a site under the www.starspangled200.org URL.

Star Spangled 200 used to be the site of a non-profit organization founded in 2007. However, instead of opening a website related to the War of 1812, following the link redirects users to www.globeinternational.info, a Philippine online gambling site.

Instead of information about the War of 1812 and commemorative materials, the site offers a variety of casino games and betting market, including virtual cockfighting offerings.

Many people thought that there could have been some typo in the URL. However, it turns out that this is not the case.

According to The Washington Post, it is not clear when this redirect happened. The Philippines-based casino is owned by a private firm that has so far remained silent despite the effort of Maryland officials to contact the owners.

At the same time, authorities found it impossible to reach Star Spangled 200. Sandy Hillman Communications, a former partner of the non-profit organization claims that it had been disbanded. Its spokesperson, Lauren Walbert, said that she doesn’t know who is maintaining the actual site now.

The Maryland Motor Vehicle Administration (MVA) addressed the matter, stating that it has never owned or maintained the URL in question. The association also emphasized that it does not endorse the gambling website in any capacity.

Endorse or not, the MVA now has to decide what to do next. While the agency has refrained from announcing its plans, it said that it is considering its options. Paul J. Wiedefeld, Maryland’s Transportation Secretary is also yet to comment on his plans.

Some have suggested that the MVA might consider changing the plates with new ones or buying the URL. However, both options are likely to be pricy. In any case, the Maryland authorities will likely have to do something, considering the plates’ ties to an unlicensed gambling website.

The post Over 780,000 Maryland Car Plates Link to a Philippine Casino appeared first on Keno Wizard.

The note focuses a big part of its report on Bloomberry Resorts, the company behind Solaire Resort, which is expected to soon release its full-year results for 2022 and the last quarter of the year. According to the note, Bloomberry can expect to see its gross gaming revenue increase by another 9% in 2023, and further improve by 32% in 2024.

Analysts Bullish on Long-Term Casino Recovery

This could be indicative of the good times ahead, but this growth will not be immediately driven by Chinese visitors. In fact, Chinese travel in the region, including the Philippines and neighboring countries, to wit Malaysia, Indonesia, and others, will remain fairly suppressed at levels of 36% of its 2019 numbers.

The note also argues that the “quality” of Chinese VIP visitors has also declined due to the economic background at home, with the property bubble bursting and manufacturing slowing down. In the short-term, there would be a conservative boost to the Philippines, the note further adds.

Even though there won’t be as many Chinese visitors coming in, the note remains fairly confident in the future of Bloomberry and its ability to attract an international clientele elsewhere.

The Philippines will have to weather the slow recovery, as traffic from Guangzhou and Incheon has remained slow, but the country’s long-term prospects are solid, Maybank Securities seems to believe. As to the casino sector in the country – it will continue to improve consistently, the note concludes.

Still Issues to Fix in the Industry at Home

Meanwhile, the casino industry in the Philippines is see-sawing between public and political disapproval. The Philippine Online Gaming Operators are among the most heavily criticized entities in the country – both by local and by Chinese diplomats, and are tied to what is alleged to be illegal gambling activities.

At the same time, some lawmakers have been pushing for the privatization of PAGCOR, the country’s gambling regulator and regulator, arguing that this would boost tax revenue for the state.

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