23-7-2024 (MANILA) President Ferdinand Marcos Jr.’s decisive move to ban all Philippine offshore gaming operators (POGOs) nationwide has sent shockwaves through the industry, with gaming authorities and economic experts grappling with the potential fallout. The sweeping order, aimed at curbing the involvement of POGOs in criminal activities, is expected to have far-reaching consequences, affecting thousands of workers and billions in revenue.
In a candid assessment, Alejandro Tengco, the Chairman of the Philippine Amusement and Gaming Corporation (PAGCOR), revealed that the POGO ban could directly impact a staggering 40,000 Filipino workers employed in the sector. “The President has also instructed the Department of Labor and Employment and economic managers to carefully study how to assist those affected by the order to close POGO companies,” Tengco stated during an interview with TeleRadyo Serbisyo.
Beyond the immediate impact on the workforce, the ripple effects extend to government coffers. PAGCOR itself is projected to lose between P7 billion and P7.5 billion in annual revenue, while the Bureau of Internal Revenue (BIR) stands to forgo at least P14 billion as a result of the POGO closures. These figures do not account for the losses in collections by the labor department and immigration bureau, further compounding the economic toll.
Budget Secretary Amenah Pangandaman, while acknowledging the revenue contributions of POGOs, described the amount as “small” in comparison to the potential gains through efficiency and revenue generation measures. Earlier estimates suggested that POGOs contributed between P40 billion and P50 billion in revenues annually.
However, the Department of Finance (DOF) has raised concerns about the broader economic implications of POGO operations, asserting that the Philippines loses over P99 billion annually due to their presence. Adrian Castro, an Assistant Secretary at the DOF, highlighted the “foregone investment due to crime” and the negative impact on tourism as key factors contributing to this substantial loss.
Tengco, in his role as PAGCOR Chairman, had advocated for the regulation of POGOs, noting that only 42-43 entities were operating legally. “When the President gives an order, we will comply,” he stated, acknowledging the gravity of the situation.
Senator Sherwin Gatchalian lauded the President’s decision, citing the links between some POGOs and various criminal activities, including illegal drug operations, scam operations, and alleged torture of workers. However, he acknowledged the need to find alternative employment for the estimated 20,000 Filipinos currently working in the POGO industry, while the remaining 25,000 foreign workers would have their working visas canceled and be required to return to their home countries.
The Senate investigation into POGOs will continue, with a particular focus on Bamban Mayor Alice Guo’s alleged connections to companies such as Zun Yuan Technology Inc., BAOFU Land Development Inc., and Hongsheng Gaming Technology Inc.
