Philippines President Marcos Announces Ban on POGOS

The president of the Philippines, Ferdinand Marcos Jr., announced this Monday that Philippine Offshore Gaming Operators (POGOS) will be shut down completely. This statement comes after allegations that the industry was connected to organized crime.

While addressing the public, Marcos stated that these platforms disguised themselves as “legitimate entities” but have ventured into illegal activities that differ from casino gaming. Such activities included anything from:

• financial scams and money laundering

• human trafficking and prostitution

• murder and other organized crime offenses

Marcos also stated that the fact that these illicit gambling operators were still operating was “abuse and disrespect” to Filipino laws. That’s why he took the initiative to put a stop to POGOS. Lawmakers have generally saluted his speech, and some even gave him a standing ovation.

The changes were effective immediately, per the president’s statement. Still, Marcos gave the country’s gambling regulator until the end of this year to shut down all operators involved in illegal activities.

Not Clear What Operators Are Affected?

The term POGO is used to describe gambling operators based in the Philippines but offering their services to players from other countries. A majority of these operators cater their services to Chinese gamblers, since gambling in China is forbidden except in Macau.

Reports state that these operations employ as many as 25,000 Philippine residents and many more Chinese people. Some experts believe that this crackdown is related to the diplomatic tensions between Beijing and Manila over their claims in the South China Sea.

PAGCOR estimates that around 40 offshore operators hold valid licenses, and dozens more work illegally. They started gaining traction in 2016 when former president Rodrigo Duterte established relatively friendly relations with China. Since then, the Philippines has become a major gambling hub for Chinese players, with illicit operators rising quickly during the pandemic.

According to PAGCOR chairman Alejandro Tengco, the regulator is ready to begin its work and shut down all POGO operations by year-end. Winston Casio, spokesperson for the Presidential Anti-Organized Crime Commission, stated that the time given to close all operations was sufficient, adding that many operators would likely “voluntarily leave the country.”

Pressure for the Move From Beijing

Interestingly enough, Chinese agencies support the pressure to crack down on POGOs. The Chinese government believes that by working together, both parties can bolster collaboration and efficiency.

In the past month alone, Chinese authorities helped the Philippines close five offshore gambling operations and assisted in the repatriation of nearly 1,000 Chinese residents over the past year.

Back in April, the Chinese embassy in the Philippines expressed its support for shutting down illegal gambling operations targeting Chinese nationals. It reiterated that all forms of gambling are illegal in mainland China and pledged to back the Philippines in tackling related crimes.

China aims to protect its national interests through cooperation, while the Philippines seeks to restore law and order. President Marcos concluded that though collaboration may be challenging, the joint efforts between the two nations would “solve many of the problems” both have been facing.