Growing call for action against POGOs in the Philippines?

Jenny Ortiz July 19, 2024

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Growing call for action against POGOs in the Philippines?

The clamour against Philippine Offshore Gaming Operators (POGOs) is intensifying as business associations, economic think tanks, and political groups join forces to advocate for a ban on these Chinese-run operations. Critics argue that the social detriments far outweigh any economic benefits.??

In a recent joint statement, several influential organisations, including the Makati Business Club, the Financial Executives Institute of the Philippines, and Management Association of the Philippines, expressed full support for recommendations from the Department of Finance (DOF) and the National Economic and Development Authority (NEDA) to ban POGOs.??

Business organizations fully support the recommendation of DOF Secretary Ralph Recto and NEDA Secretary Arsenio Balisacan for a total ban on POGOs. Read the full statement: https://t.co/DkXog2t4UB #MBC #Statement #POGO pic.twitter.com/o0HPSNsI53
— Makati Business Club (@MBCforum) July 17, 2024

Minimal economic contribution??

The statement, endorsed by the Foundation for Economic Freedom, Justice Reform Initiative, and the University of the Philippines School of Economics Alumni Association, emphasised that POGOs contributed only 0.2 percent to the country’s GDP in 2023. They highlighted the severe social costs associated with POGOs, such as human trafficking, kidnapping, and money laundering, which were detailed in recent Senate hearings and statements by NEDA.

According to the Philippine National Police, 55 percent of kidnapping cases in 2022 were related to POGOs. Critics warn that these crimes could hinder economic growth, damage investor perceptions, and affect international relations.

Prominent Filipino figures and organisations, led by retired Supreme Court Justices Antonio Carpio and Conchita Carpio Morales, have appealed to President Ferdinand Marcos Jr. to cancel POGO licences immediately. Their open letter cites the Chinese Embassy’s stance that all forms of gambling, including online gambling by Chinese citizens, are illegal under Chinese law.

The letter also criticised the Philippine Amusement and Gaming Corporation (PAGCOR) for granting licences to POGOs, which predominantly target Chinese nationals. It highlighted that POGOs operate with criminal syndicates, involving activities such as illegal detention, torture, sex trafficking, and tax evasion.

PAGCOR’s stance??

PAGCOR Chairman and CEO Alejandro Tengco has expressed opposition to banning all forms of online gambling. He advocates for strict regulation to enhance tax collection and curb illegal gambling activities. Tengco argues that bringing illegal operators into compliance could significantly boost government revenues, potentially adding PHP200 billion to PHP250 billion.

However, according to a local media report, a complete ban on POGOs could lead to substantial job losses. In February 2020, it was reported that 82.3 percent of POGO workers were foreigners, while only 17.7 percent were Filipinos. The Association of Service Providers of Pogos (ASPAP) stated that the industry directly employed around 11,776 Filipinos and indirectly supported many more jobs in related sectors.

Calls for a Presidential decision??

As calls for action grow louder, President Marcos faces increasing pressure to make a decisive move. Business groups, economic experts, and social advocates are urging the government to prioritise the country’s long-term welfare over the short-term financial gains from POGOs. The decision on whether to ban POGOs will have significant implications for the Philippines’ economy, social fabric, and international standing.

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