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.
Implementation challenges
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.
Legislative and enforcement measures
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.
Economic impact and future considerations
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.
Transition for displaced workers
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.
Foreign workers of POGOs, IGLs are required to leave in 60 days
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.
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