MANILA – In a decisive move to address concerns over the negative impact of offshore gaming, President Ferdinand Marcos Jr. has officially banned Philippine Offshore Gaming Operators (POGOs) through Executive Order No. 74, signed on October 30, 2024. The order mandates the immediate cessation of all POGO operations, including Internet Gaming and other offshore gaming activities in the Philippines.
Study Cites Serious Risks
The President’s decision follows a comprehensive study by the Department of Finance, which highlighted the significant social and economic risks posed by POGOs. The report indicated that POGO operations contribute to rising crime rates, social instability, and the exploitation of vulnerable individuals. These issues, according to the study, have overshadowed any potential economic benefits the industry might offer.
Further concerns were raised by the Anti-Money Laundering Council (AMLC), which reported that POGOs are often linked to money laundering, fraud, and other illicit financial activities. The AMLC warned that these practices represent a serious threat to the integrity of the country’s financial system.
Reputational Damage
President Marcos also emphasized the reputational damage caused by POGOs, noting that their continued presence in the country has deterred foreign investment and tourism. This, he argued, undermines the Philippine government's broader efforts to position the country as a safe and attractive destination for investment and tourism.
Immediate Ban and Wind-Down Process
Under Executive Order No. 74, all licensed and unauthorized POGOs, Internet Gaming Licensees (IGLs), and other offshore gaming operations are required to cease operations immediately. The order directs these entities to complete the winding down of their activities by December 31, 2024, or earlier if feasible.
As part of the implementation, the government will no longer renew or extend any licenses, permits, or authorizations related to the offshore gaming industry. Additionally, new applications for POGO and IGL licenses will be outright banned.
Crackdown on Illegal POGOs
The move is part of the government’s broader crackdown on illegal POGO operations. According to the Presidential Anti-Organized Crime Commission (PAOCC), there are over 100 illegal POGO units operating in the Philippines. These operations are often linked to human trafficking and other criminal activities.
To bolster enforcement efforts, President Marcos has called for the creation of specialized technical working groups (TWGs) to oversee the implementation of the ban, assist displaced workers, and mitigate the economic impact of the shutdown.
Strengthening Enforcement and Prevention
Law enforcement agencies have been tasked with intensifying their efforts against illegal POGOs and related operations. The Department of Human Settlements and Urban Development (DHSUD) has been directed to work with homeowners associations and other stakeholders to prevent the proliferation of illegal offshore gaming operations in residential areas, including subdivisions and condominiums.
Meanwhile, the Department of Tourism (DOT) has been instructed to monitor tourism establishments to ensure they are not being used to facilitate illegal POGO activities. The Philippine Amusement and Gaming Corporation (PAGCOR) and the Bureau of Internal Revenue (BIR) have been mandated to expedite the collection of taxes and fees from offshore gaming operators, in accordance with existing laws.
Regional Impact and Human Trafficking Efforts
The ban on POGOs is expected to have significant regional implications, particularly in the fight against human trafficking. Local authorities have linked POGOs to a rise in the trafficking of foreign nationals for exploitative labor, with many victims reportedly subjected to poor working conditions and abuse in POGO-related businesses. The closure of these operations is seen as a critical step toward addressing human trafficking concerns.
In response, President Marcos urged regional cooperation to tackle the broader issue of illegal gambling and human trafficking, stressing the need for stronger cross-border collaboration with neighboring countries.
A Turning Point for Philippine Governance
The POGO ban marks a significant turning point in the Marcos administration's approach to managing the offshore gaming sector. The government’s emphasis on security, human rights, and financial integrity reflects broader goals of ensuring a safer, more sustainable business environment for the Philippines.
As the country prepares for the full implementation of Executive Order No. 74, the government will continue to focus on supporting workers displaced by the industry and ensuring that affected regions are given the resources needed to transition away from reliance on offshore gaming.