In a significant move, various government agencies agreed on Tuesday that a total ban on Philippine Offshore Gaming Operators (POGOs) must be implemented. The consensus emerged during a Senate Committee on Ways and Means hearing, where the Department of Finance (DOF) highlighted the substantial economic losses incurred due to POGO operations.
DOF Assistant Secretary Adrian Castro revealed that the country loses over P99 billion annually because of POGO activities. “We have foregone investment due to crime and lost revenues from tourism because of the negative perception associated with POGO activities,” Castro explained. He added that although banning POGOs would result in a loss of tax revenues, this would be offset by increased investments.
The National Economic and Development Authority (NEDA) supported the DOF’s stance, emphasizing that the economic costs of POGOs outweigh their benefits. NEDA Director Desiree Joy Narvaez warned that continuing POGO operations could lead China to blacklist the Philippines as a tourist destination, potentially costing the country around P144 billion in lost tourism revenue.
The National Security Council (NSC) is also assessing POGOs’ impact on national security. NSC Assistant Director General Francis Lauengco stated that while no immediate threats are apparent, the council supports legislation to outlaw and criminalize illegal POGO operations, including Internet Gaming Licensees (IGLs).
Senator Sherwin Gatchalian, Chair of the Committee, called for urgent action, suggesting that the potential risks posed by POGOs should be considered a national security threat. “We should not wait for a larger crisis. The red flags should be enough for us to act,” Gatchalian remarked.
In contrast, Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco argued for stricter regulation rather than an outright ban. “I am not preempting the decision of Congress, the Senate, or the President. I believe effective regulation and monitoring can address the issues while retaining the funds collected by PAGCOR for nation-building,” Tengco said.
Undersecretary Gilbert Cruz of the Presidential Anti-Organized Crime Commission (PAOCC) suggested that declaring POGOs illegal would simplify enforcement efforts. He explained that if POGOs went underground, it would be easier to target them in smaller, less fortified locations.
Senator Gatchalian also emphasized the need for stricter regulation of online gaming, including online casinos and slot machines. He noted the ease with which fake accounts could be created, underscoring the importance of monitoring these activities closely.
PAGCOR reported monitoring 7,747 illegal online gaming sites, with 5,793 already blocked. The push for a POGO ban and tighter regulation of online gaming reflects a broader effort to address the economic and security challenges posed by these activities.