PAGCOR: Former government official lobbied for illegal POGOs

Jenny Ortiz July 1, 2024

SiGMA news

PAGCOR: Former government official lobbied for illegal POGOs

The Philippine Amusement and Gaming Corporation (PAGCOR) revealed that a former high-ranking government official attempted to secure gaming licences for several illegal Philippine Offshore Gaming Operators (POGOs) that were recently raided. PAGCOR Chairman and CEO Alejandro Tengco stated that these activities and the involvement of the former official would be disclosed in a proper forum.

Tengco emphasised the need to investigate the issuance of licences to POGO applicants with questionable backgrounds, facilitated by former officials and their intermediaries. He criticised the past administration for the excessive number of POGO licences granted, which has since been reduced from 298 to 43 under the current administration.

“As a regulator, it is our mandate to ensure that only those with valid licences are allowed to operate all forms of gambling and gaming activities, whether these are land-based casinos or online platforms,” Tengco said in a statement.

“It is in the interest of the government to crack the whip against illegal operators, including the so-called offshore gaming operators or POGOs and their backers, because the criminal activities associated with their illegal operations pose serious threats to our people,” he said.

Raids and legal actions

Two prominent POGOs, Zun Yuan Technology Inc. and Lucky South 99 Corp., were raided and shut down this year. Both companies are facing human trafficking charges. The operations against these companies were led by the Presidential Anti-Organized Crime Commission (PAOCC) with support from the Philippine National Police (PNP).

Senate inquiries

Senator Sherwin Gatchalian, advocating for a total ban on POGOs, expressed surprise that PAGCOR officials had not previously mentioned the former Cabinet official’s lobbying efforts in Senate hearings. He called for a thorough investigation and indicated plans to invite the mentioned former official to testify in upcoming hearings.

Gatchalian hinted at possible connections involving former Presidential Spokesperson Harry Roque, whose name appeared in documents found at a raided POGO facility. Roque has denied any wrongdoing, stating his involvement was limited to legal representation for a related company.

Industry accountability

Senator Risa Hontiveros, leading the Senate committee on women, children, family relations, and gender equality, called on PAGCOR to address the criminal activities associated with POGOs, regardless of their licencing status. Both Gatchalian and Hontiveros stressed the need for stricter regulatory oversight to prevent further crimes linked to the industry.

Economic considerations

Despite the crackdown, PAGCOR opposes a total ban on POGOs due to their significant contribution to government revenues. In 2023, POGO companies generated PHP5.2 billion (€82.7 million) for the government, accounting for about 5-6 percent of PAGCOR’s total revenues. The Department of Finance reported a 127 percent increase in tax revenues from POGOs in 2022.

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