Asia NEWS

The Chinese Embassy in the Philippines has expressed strong approval of President Ferdinand Marcos Jr.'s decision to ban all Philippine Offshore Gaming Operators (POGOs). In a statement, the embassy highlighted that this move would benefit both Filipino and Chinese communities. 

"We have noted President Marcos’ announcement of banning all POGOs and welcome this development. We believe this decision echoes the call of the Philippine people and serves the common interests of people of both countries," the Embassy stated on Thursday. 

The Chinese government has been actively cracking down on its citizens involved in gambling businesses abroad, including POGOs. The embassy underscored that these operations are linked to serious crimes such as kidnapping, human trafficking, and murder. It was emphasised that POGO activities harm the interests and images of both nations and negatively affect China-Philippines relations. 

"The Chinese law prohibits all forms of gambling," the statement added. "The Chinese government strictly cracks down on Chinese citizens engaging in overseas gambling businesses including POGO."

The embassy reiterated China's readiness to continue its strong law enforcement cooperation with the Philippines to protect the safety and well-being of their citizens. They emphasised that many Chinese citizens involved in POGO-related crimes were victims of the industry. 

"POGO breeds serious crimes and gravely undermines the interests of both Philippine and Chinese people," the statement said. "In line with this commitment, China is ready to continue its strong law enforcement cooperation with the Philippines and better protect the safety and well-being of the two peoples." 

The Associated Press reported that Marcos’ order targets over 400 online gambling operations employing tens of thousands of Chinese and Southeast Asian nationals. These operations have often been linked to illegal activities and poor working conditions. 

Marcos emphasised the need for strict enforcement of this ban, citing the severe abuse and disregard for Philippine laws by these operators. The Philippine Amusement and Gaming Corporation (PAGCOR) has been tasked with winding down these operations by the end of the year, with labour officials working to find alternative employment for displaced Filipino workers. 

In a joint House committee hearing, PAGCOR Chairman and CEO Alejandro Tengco clarified that the President’s order encompasses all offshore gaming operations, including the licenced Internet Gaming Licensees (IGLs). Speaking with local reporters, Tengco also shared that around 20,000 Filipino workers are set to be displaced. 

The Philippines' relationship with China remains complex, balancing significant trade engagements and cooperation against crime with ongoing territorial disputes in the South China Sea. While Marcos’ predecessor, Rodrigo Duterte, fostered closer ties with China, Marcos has shifted towards strengthening defence ties with the U.S. and other allies. 

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

Malaysia-based casino supplier RGB International and local digital gaming company DigiPlus both announced they remain unaffected by the government’s recent ban on Philippine Offshore Gaming Operators (POGOs).   

On Monday, President Ferdinand Marcos Jr. declared that POGOs must cease operations by the end of the year during his State of the Nation Address (SONA), impacting 38 Internet Gaming Licensees (IGLs) permit holders and seven provisional licensees based on the data from the Philippine Amusement and Gaming Corporation (PAGCOR).  

RGB emphasised that none of its slot machines were sold to POGOs. Instead, their machines are exclusively supplied to integrated resorts (IR), casinos, and slot club operators licenced by PAGCOR. The company maintains a positive outlook on its business prospects in the Philippines.  

The company said the board of directors of RGB International Bhd reassures all stakeholders that they are not affected in any way by the POGOs ban. They also highlighted their recent plans to open a new facility in Manila, which will include a showroom, training hub, and repair centre. This facility, located near the Entertainment City casino zone, aims to support regional expansion and sustained business growth.  

RGB recently secured an $81 million (€74.6 million) deal to supply nearly 2,000 new slot machines to PAGCOR as part of a refresh of the regulator’s self-operated casinos. This strategic move underscores the company's robust prospects in the Philippine market.  

DigiPlus Interactive Corp., a digital gaming company in the Philippines, has also assured its investors and stakeholders that the POGO ban will not affect its operations. Unlike POGOs, DigiPlus caters to the local market and operates physical gaming sites across the country, as mandated by Philippine law.  

DigiPlus President Andy Tsui clarified that the company is not classified as a POGO or an IGL. "DigiPlus is not a POGO or an IGL as defined under Philippine laws," Tsui stated. He emphasised that DigiPlus complies with local regulations and maintains various licences required to offer traditional and electronic bingo, sports betting, specialty games, and poker.  

The company’s digital entertainment platforms, such as BingoPlus, ArenaPlus, Perya Game, and BingoPlus Poker, continue to serve Filipino customers without disruption. Last year, DigiPlus paid PHP13.1 billion (€206.2 million) in taxes to the Philippine government. It also provides employment to over 2,000 people across the country. Additionally, the company’s BingoPlus Foundation has invested over PHP100 million (€1.6 million) in corporate social responsibility projects.  

"As such, local gaming enthusiasts need not worry. Fans of DigiPlus’ products will be glad to know that their top-of-the-line platforms will continue running without interruption, unaffected by the recent presidential announcement," Tsui added. The company's focus on innovation aims to revolutionise the entertainment space in the Philippines, ensuring that local gaming enthusiasts can enjoy uninterrupted services despite the recent regulatory changes.  

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

China’s Supreme People’s Court (SPC) has intensified its crackdown on cross-border gambling, citing the case of Alvin Chau (pictured above) and his Suncity Group as a prime example of the industry’s harmful impact. The court has emphasised that such operations result in massive capital outflows and pose significant threats to social stability.

SPC highlighted the escalating problem of offshore casinos and online gambling platforms targeting Chinese citizens. These operations have facilitated the transfer of billions of yuan out of the country, fuelling concerns about economic security.

The Suncity Group, once a dominant force in Macau’s gaming industry, was identified as a key player in this illicit network. The group operated VIP rooms in multiple Macau casinos and established online gambling platforms in the Philippines and other jurisdictions. With a vast network of agents and customers, Suncity was instrumental in funnelling billions of yuan out of China.

Alvin Chau, the group’s founder, was arrested in 2021 and subsequently sentenced to 18 years in prison for illegal gambling and organised crime. The court ordered him to pay MOP$25 billion (US$3.2 billion) in compensation.

To combat this growing threat, the Chinese courts have handed down severe penalties to gambling organisers, ringleaders, and repeat offenders. Recent cases include a life imprisonment sentence for a mafia-style gang leader involved in cross-border gambling and human trafficking, as well as a seven-year prison term for the head of a gambling ring that amassed billions of yuan in illicit profits.

The SPC has stressed the importance of disrupting the financial networks used by these criminal organisations. By targeting these groups’ leaders and key members, authorities aim to dismantle their operations and deter others from engaging in similar activities.

As China continues to tighten its financial security and maintain social order, the crackdown on cross-border gambling is expected to remain a top priority for law enforcement and the judiciary.

Stay in the loop with the latest updates and news for the upcoming SiGMA East Europe Summit powered by Soft2Bet. The summit will take place in Budapest from 2-4 September. 

The Department of Tourism (DOT) in the Philippines is optimistic about surpassing its target of 7.7 million tourist arrivals for 2024, riding on the current upward trajectory of the tourism sector.   

“With this upward trajectory of the performance of Philippine tourism under the Marcos administration, what we anticipate is that in the same way that we were able to exceed our targets as far as visitor receipts are concerned for 2023, that we would be able to achieve the same feat for 2024,” Tourism Secretary Christina Garcia Frasco said during the 2024 Post-State of the Nation (SONA) discussions.  

Despite this optimism, Frasco highlighted challenges in easing the convenience of entering the Philippines, particularly regarding e-visas. She emphasised the need for full implementation of the e-visa program, as directed by President Ferdinand Marcos Jr., in cooperation with the Bureau of Immigration (BI).  

Marcos, in his third SONA, underscored the importance of projects that enhance the overall tourist experience. He highlighted the implementation of e-gates and the Philippine e-visa as key initiatives. “Our infrastructure and digital reforms, through the development of tourism sites and the enhancement of the overall tourist experience, are all calculated to boost the productivity of the tourism sector,” Marcos stated. 

Electronic gates are set to become standard fixtures at international airports, further facilitating ease of mobility. Additionally, the e-visa system is part of the government’s digital transformation agenda. This initiative aims to streamline and simplify the visa application process, making travel to the Philippines more convenient.  

During the SONA, Marcos also announced the ban on all offshore gaming operations in the country. The ban includes legal and illegal operators under Philippine Offshore Gaming Operators (POGOs) and Internet Gaming Licensees (IGLs).  

The Marcos administration is also focusing on "experiential tourism," enhancing the tourist experience through various facets such as food, culture, heritage, arts, and eco-tourism. Marcos emphasised the need to elevate the "one town, one product" (OTOP) concept, harnessing Filipino creativity and ingenuity to unlock the untapped potential of these new tourism facets. “This is an imperative and we must elevate and expand our understanding of the 'one town, one product,' or OTOP, concept,” he said.

Meanwhile, in an earlier interview with SiGMA News, Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco said the country is expecting have more integrated resorts (IR) in the next few years.   

Last year, international and domestic visitor receipts amounted to around PHP 3.36 trillion (€52.8 billion). “We’ve also seen, according to the Philippines Statistics Authority (PSA), the highest ever recorded growth rate in terms of tourism direct gross value added to the gross domestic product,” Frasco stated, noting that tourism now contributes 8.6 percent to the country’s GDP. This growth translated into job creation, with over 6.21 million Filipinos employed in the sector, accounting for 12.9 percent of the national employment rate.  

The government has been proactive in addressing the unique challenges faced by the tourism sector, investing heavily in infrastructure development. In 2023, the government allocated over PHP96.6 billion (€1.5 billion) to tourism, with total investments reaching half a trillion pesos. The Tourism Secretary emphasised that these investments are crucial for recovering pre-pandemic numbers and sustaining growth. “However, post-pandemic, the view of the world has changed as far as tourism is concerned,” she noted, emphasising the importance of visitor spending over mere arrival numbers.  

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

Philippine junket operator Dowinn Group has reopened a few of its previously closed VIP gaming rooms, according to several local news reports. The reopenings come after the company abruptly shut down all its Philippine operations in June amid rumours of financial difficulties.

The group's rooms at Okada Manila, City of Dreams Manila, and Clark's Royce Hotel and Casino were reportedly open for business as of 19 July. It is understood that Dowinn is focusing on hiring new staff following a recent exodus of employees.

News sources claimed that a new group of investors facilitated the reopening. However, details on their origin and the amount invested remain unclear.

Previously, Dowinn operated the casino at Manila's Heritage Hotel and Casino and VIP rooms at several other locations, including Solaire Resort, City of Dreams, D'Heights Resort, and Royce Hotel.

The gambling industry was shaken when the operator's issues began on 17 June, as Dowinn Group, a major casino operator, suddenly ceased operations, sparking rumours of the casino's complete collapse.

Dowinn quickly issued a statement refuting these claims. It acknowledged the halt in operations but characterised it as a temporary measure to protect the valuable interests of its customers and shareholders. The company blamed the situation on "unjust external attacks and slander."

Dowinn has vehemently denied experiencing any financial difficulties. However, they have not yet responded to the specific withdrawal issues raised by agents. The company expressed optimism about its future and originally planned to resume operations on 24 June. Nonetheless, they failed to do so and have not provided further updates.

The latest news reported was about the opening of its VIP rooms. However, there is yet to be an official confirmation from the company to verify the authenticity of this rumour.

Stay in the loop with the latest updates and news for the upcoming SiGMA East Europe Summit powered by Soft2Bet. The summit will take place in Budapest from 2-4 September. 

The closure of POGOs is expected to have a massive impact on the real estate sector, as the industry was a major tenant of office spaces according to Reuters.

PAGCOR will be working closely with law enforcement agencies to prevent POGOs from operating illegally and to address concerns about human trafficking and other crimes associated with the industry.

The Philippine government is set to completely phase out the offshore gaming industry, with a focus on Chinese-owned operators, according to a statement from the Philippine Amusement and Gaming Corporation (PAGCOR) on Tuesday.

President Ferdinand Marcos Jr. has ordered the regulator to shut down Philippine Offshore Gaming Operators (POGOs) by the end of the year amid concerns over their alleged links to criminal activities. "No problem in closing down POGOs because I can invoke national security and the president's order," PAGCOR Chairman Alejandro Tengco told Reuters.

The once-booming industry, which took off in 2016 due to lenient regulations, has recently faced increasing scrutiny. There were 300 POGO operators at its peak, but stricter tax rules and the COVID-19 pandemic forced many to close or relocate. According to Chairman Tengco, there's only 43 licensed POGOs in the Philippines, employing approximately 63,000 workers.

While the government stands to lose around 23 billion pesos (approximately €362 million) annually in taxes and fees from the industry, Economic Planning Secretary Arsenio Balisacan (pictured above) argued that the benefits of a ban outweigh the costs.

China, which has been vocal about its opposition to cross-border gambling, is seen as a potential beneficiary of the crackdown. Some analysts believe the move could help ease tensions between the two countries over the disputed South China Sea.

"This might lead to an improvement in Philippine and China relations," said Renato Cruz De Castro, an international affairs analyst at De La Salle University.

Stay in the loop with the latest updates and news for the upcoming SiGMA East Europe Summit powered by Soft2Bet. The summit will take place in Budapest from 2-4 September. 

Macau's Gaming Inspection and Coordination Bureau has initiated an investigation into unlicenced individuals conducting activities like VIP gaming promoters, known as junkets. GGR Asia reported the regulator discovered these so-called unlicenced agents during routine inspections of the city's casinos.  

According to the report, the regulator did not specify the exact timing or locations of the latest checks. These inspections aimed to oversee operations in VIP and mass gaming areas, ensuring that illegal activities such as "multiplier" bets and unauthorised revenue-splitting arrangements in VIP rooms were prevented. Additionally, the checks verified whether individuals providing gaming intermediary services held valid licences.  

The "multiplier" practice involves privately arranged agreements where the value of a bet is multiplied multiple times, circumventing the 40-percent tax on gross gaming revenue in Macau. The regulator identified individuals performing roles akin to gaming promoters without holding the necessary licences and has launched investigations into these activities.  

The bureau has not detailed the specific activities of these unlicenced agents but indicated that it would pursue strict legal actions, including banning the individuals from casino entry as a preventive measure.   

In recent months, Macau's gaming regulator has intensified scrutiny and imposed sanctions on unlicenced gaming agents. Those identified have faced casino entry bans and fines.   

Macau authorities are stepping up efforts against illegal activities. Earlier this month, police forces from Guangdong, Hong Kong, and Macau arrested 93 individuals for illegal sports betting. Moreover, police discovered the syndicate utilised overseas servers to host websites for betting on football and basketball games.      

The Gaming Inspection and Coordination Bureau's efforts to clamp down on unlicenced gaming agents highlight the importance of regulatory compliance in the casino industry. By enforcing strict measures and monitoring activities closely, the regulator aims to maintain the integrity of Macau's gaming sector and prevent unlawful practices. 

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco clarified that the ban on all Philippine Offshore Gaming Operators (POGOs) includes Internet Gaming Licensees (IGLs) as instructed by President Ferdinand Marcos Jr. The ban on all POGOs, legal and illegal, was announced by Marcos in his 3rd State of the Nation Address (SONA).  

During a joint committee hearing at the House of Representatives, Tengco said the decision encompasses the 43 remaining legal entities now termed IGLs, emphasising the clarity of the President's orders.  

Despite the directive’s clarity, confusion remains among lawmakers and officials regarding its enforcement. Representatives like Surigao del Norte’s Robert Ace Barbers and ACT Teachers’ France Castro expressed concerns about potential loopholes due to the rebranding of POGOs as IGLs. Tengco reassured the committees that all POGO operations under PAGCOR's jurisdiction would cease, stressing the necessity to distinguish between legal and illegal operators to avoid enforcement gaps. This distinction is critical to ensuring that the ban is comprehensive and effective.  

In July 2023, the term IGL was introduced to improve the image of POGOs by implementing stricter regulations and a rebranding effort. This initiative reduced the number of licenced operators from 298 to 43, as many could not meet the new standards.   

The POGO industry had gained notoriety for its association with various criminal activities, prompting this regulatory overhaul. Recent raids have highlighted the explicit connection between gambling companies and illegal activities such as prostitution, torture, and murder, reinforcing the need for stringent controls.  

To ensure the effective implementation of the directive, Interior Secretary Benjamin Abalos Jr. and other agencies will collaborate on the operational shutdown. The Presidential Anti-Organized Crime Commission (PAOCC) emphasised the importance of the five-month timeframe for identifying and deporting foreign nationals working in the industry.   

House Speaker Martin Romualdez called for legislation to solidify the ban and prevent future administrations from reviving these operations.   

PAGCOR projects revenue losses from the ban, estimated at PHP7 billion (€110.2 million) annually from IGLs. Additionally, the Bureau of Internal Revenue (BIR) and other agencies could lose up to PHP23 billion (€362 million) in taxes and fees. Despite these concerns, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan argued that the benefits of the ban outweigh the costs, highlighting the negative social and reputational impacts of hosting POGOs.   

Balisacan said the industry contributed less than 0.5 percent to the GDP in 2022, and its removal could deter criminal activities linked to these operations. Balisacan emphasised that the focus should be on promoting legitimate businesses that enhance the country’s reputation as an investment and tourist destination.  

The government plans to assist displaced POGO workers by transitioning them into the information technology-business process management sector, leveraging their existing IT skills. Agencies like the Department of Labor and Employment (DOLE) and the Commission on Higher Education (CHED) will provide the necessary training and support to facilitate this shift. Philippine Economic Zone Authority Chief Tereso Panga affirmed the agency’s commitment to helping displaced workers, highlighting the importance of upskilling and reskilling to ensure a smooth transition to new employment opportunities.  

Moreover, Bureau of Immigration (BI) Commissioner Norman Tansingco said that around 20,000 foreign workers of POGOs and IGLs will be required to leave the country in 60 days. He added that pending applications and new applications for visas for POGO and IGL workers will be denied by the BI. 

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

Prime Minister Hun Manet has announced a ban on the establishment of new casinos in Cambodia's Kep and Kampot provinces, with the sole exception of Bokor Mountain, where current casino operations will continue. According to the report of Phnom Penh Post, the directive is part of a broader strategy to diversify investments across various sectors, including hotel and hospitality, tourism, manufacturing, industry, agriculture, trade, and special economic zones (SEZs).  

The Prime Minister emphasised that this ban aims to strengthen and promote cultural and religious preservation, enhance security, and improve order in tourist destinations. The government's move reflects a commitment to ensuring that tourism and hospitality investments do not undermine the cultural and social fabric of the nation.  

As of now, Cambodia is home to 184 licenced gambling establishments. Many of these, totalling 100, are in coastal regions, including Bokor Mountain in Kampot. Additionally, there are 48 casinos in provinces bordering Thailand, 35 along the Vietnam border, and one in the capital city, Phnom Penh. These figures are provided by the Commercial Gambling Management Commission of Cambodia (CGMC).  

The Law on Management of Commercial Gaming, enacted in 2020, outlines strict regulations on the location of gambling establishments to protect cultural and religious sites. Article 19 of this law prohibits casinos in certain areas for the sake of conservation and other necessities. However, Article 20 provides exceptions for casinos established before the law's enactment. The law also strictly prohibits all forms of gambling for Cambodian citizens inside casinos, with all forms of gambling outside these establishments being illegal.  

Earlier this month, the Cambodian government raised concerns as online gambling has seen a rise in the Southeast Asian country.  Local media reported that the spokesman for the Ministry of Economy and Finance confirmed that the CGMC had not issued any online gambling licences, rendering all online betting agencies illegal.   

While the Cambodian government recognises the financial contributions of the casino industry, it is taking steps to ensure that this does not come at the expense of cultural integrity and social stability.  

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

In a recent report by Reuters, it was revealed that a surge in derivatives trading in India could be attributed to a ‘gambling instinct’. The report, released by the finance ministry, suggested that the sharp increase in derivative trading among Indian retail investors is likely driven by the allure of potential outsized gains, which cater to human’s gambling instincts.

The annual Economic Survey, presented in parliament by Finance Minister Nirmala Sitharaman, (pictured above), highlighted these considerations as the likely driving force behind the active retail participation in derivatives trading. The report cautioned that any significant correction in the stock market could deter young investors.

Since the COVID-19 market lows in March 2020, benchmark equity indexes have seen a surge of more than 200 percent, largely attributed to an influx of retail traders in the derivatives market. The share of derivatives trading volumes by retail traders has skyrocketed to 41 percent this year, up from just 2 percent in 2018. This has propelled India’s monthly notional value of derivatives traded to a worldwide high of 9,504 trillion rupees ($113.60 trillion) in May.

However, the report also warned that derivatives traders globally tend to lose money for the most part, and retail investors could face even more considerable losses in the event of a significant market correction. The behavioral response of investors to such losses could lead to a feeling of being ‘cheated’ by unseen, more considerable forces, potentially causing them to withdraw from capital markets for a long time.

Analysts have suggested that the government may consider raising the transaction tax on derivatives to temper the frenzy and also consider adjustments to long-term tax rules for equity investments.

The Economic Survey also issued a caution against the rise in the market capitalization of listed Indian companies. The market capitalization of companies listed on the NSE, India’s largest exchange, stood at $5.29 trillion as of July 22, up from $3.59 trillion a year ago. In March alone, the market capitalization-to-GDP ratio had risen to 124 percent – higher than other emerging market economies like China and Brazil – up from 77 percent five years ago.

The survey results clearly indicated the need for caution, stating that if equity market claims on the real economy are excessively high, it could be a sign of market instability rather than market resilience. The report does not always provide signals for likely budget announcements, but it does offer valuable insights into the current state of the market.