Reallocation, or total ban? The POGO saga continues

In the latest development from the ongoing POGOs Saga, Albay 2nd district Representative Joey Salceda, who is both an economist and a lawmaker, has once again expressed his opposition to the proposed blanket ban on Philippine Offshore Gaming Operators (POGOs), stating that it goes against legal reasoning.

Representative opposes Philippine blanket ban on POGOs

Rep. Salceda emphasised that should all POGOs be forced to leave, the country could miss out on a potential P8 billion in tax revenue.

The House Committee on Ways and Means Chairman further noted that a total ban would result in a staggering P192 billion gross value added loss in the real estate, labour, ancillary costs, and other related services and industries that support POGOs.

“More importantly, there isn’t any legal logic by which we can discriminate against POGOs as a class of businesses. Making arbitrary or special exceptions against a business hurts our credibility,” Salceda said.

Senator Sherwin Gatchalian, who is the head of the Committee on Ways and Means and is a long-term POGOs foe, had recommended the complete cessation of POGO operations in the country. The Senator asserted that the “POGO experiment” has fallen short of its economic promises, having instead “created new avenues for crime and corruption, damaging our country’s reputation among diplomatic allies, foreign investors, potential tourists, and even our own countrymen.”

“A phaseout of an entire industry on the basis of the violations of some of them does not make sense if you apply it to any other business either. So, I disagree with both a ban and a phaseout,” Salceda remarked.

To add, there is no complete assurance that such a ban or phaseout would be effective in the way Senator Gatchalian hopes. This sentiment is shared by gaming veteran Joe Pisano, CEO at the Philippine-based JADE Entertainment and Gaming, who reached out to SiGMA News to comment:

“We may see an improvement in the country’s AMLC standing [should POGOs be banned], but the Philippines has a very strong domestic gaming market and I doubt that it will make any difference to them if POGOs are banned. Such a ban may actually motivate a move to black market operations, leading “to an increase in illegal gaming.”

Senator proposes POGO relocation towards improving industry oversight

Senator Ronald “Bato” dela Rosa, who heads the Senate Public Order and Dangerous Drugs Committee, has proposed relocating all POGOs to a designated area for improved industry oversight.

During a virtual interview with reporters, Dela Rosa suggested a gradual phasing out of POGOs instead of an abrupt shutdown. According to the Manila Bulletin, the senator stated that operating POGOs within a regulated zone would enable the government to closely monitor their operations and prevent criminal activities.

His remarks had followed the aforementioned calls for the industry to be shut down by Senator Gatchalian. More recently, PAGCOR, the Philippine gaming regulator, has declared that the industry will remain but with strengthened oversight.

The agency noted in a statement “The Philippine Amusement and Gaming Corporation (PAGCOR) would like to reiterate its firm commitment to uphold the integrity of the gaming industry in the Philippines, including offshore gaming.”

“PAGCOR reassures the public that to maintain the integrity of regulated gaming in the country, the state-run firm will not hesitate to impose appropriate sanctions or penalties to erring licensees or service providers. We will ensure that all revenues from regulated gaming will continue to support the government’s nation-building efforts and uplift the lives of Filipinos.”

Dela Rosa plans to file a motion for plenary debate to reach a group decision on the “conflicting recommendations” of the two Senate committees on the future of POGOs.

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