POGOs rebrand as BPOs amid nationwide ban: PAOCC’s Quidato

Philippine Offshore Gaming Operators (POGOs) are reportedly rebranding themselves as Business Process Outsourcing (BPO) firms to evade detection and continue operating despite a nationwide ban. Presidential Anti-Organised Crime Commission (PAOCC) Director Winnie Quidato highlighted this alarming trend during a recent Senate hearing, adding that some operators have also broken into smaller groups to avoid law enforcement.

“The large POGO companies we have raided before are now fragmenting into smaller entities, and some are posing as BPOs,” Quidato said.

He noted that during a raid in Pampanga, authorities found these operators renting 45 houses within a subdivision, a tactic likely employed to stay under the radar. 

The rebranding raises concerns for the legitimate BPO industry, a key revenue generator for the Philippine economy. Senator Risa Hontiveros stressed the need to safeguard the integrity of the BPO sector from any association with POGOs, whose reputation has been marred by links to organised crime, human trafficking, and financial scams.

Relocation and collusion

In addition to rebranding, POGOs are reportedly relocating to less-monitored regions, including Visayas and Mindanao. Quidato confirmed that many operators are transferring operations and employees to these areas, with some even altering their company registrations with the Securities and Exchange Commission to appear as legitimate enterprises. 

Senator Hontiveros has raised severe allegations against unnamed government officials, accusing them of aiding POGOs in circumventing the ban.

“Certain officials are allegedly advising operators on how to disguise their illegal activities, undermining enforcement and eroding public trust,” she said.

She called for heightened vigilance from local governments and a coordinated approach among agencies to tackle the issue effectively. Hontiveros also vowed to investigate officials who may be complicit in helping POGOs sidestep the law. 

Government action and broader implications

The crackdown on POGOs follows President Ferdinand Marcos Jr.’s Executive Order 74, which mandates the phased closure of all POGO operations by the end of 2024. The decision, announced during the 2024 State of the Nation Address, reflects growing concerns over the industry’s societal impact and its alleged connections to criminal networks.

While the ban aims to eliminate these illegal operations, its enforcement faces significant challenges, particularly as operators adopt sophisticated strategies to evade detection. Quidato stressed the need for coordinated efforts to address the issue, adding that discussions with other agencies are underway. 

The ban is expected to affect thousands of workers, including Filipinos and Chinese nationals. To mitigate the impact, the government has pledged to provide alternative employment opportunities through the Department of Labor and Employment. 

Upholding integrity

As investigations into the alleged collusion and rebranding strategies deepen, Senator Hontiveros underscored the importance of holding accountable those who undermine the ban. “This is not just about legality but about ensuring trust in our institutions and leaders to uphold justice,” she remarked. 

The crackdown on POGOs highlights the government’s commitment to combating organised crime and protecting economic sectors like BPOs from reputational harm. However, as rebranding tactics and regional relocations demonstrate, enforcement remains a challenging and evolving battle.

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