A major policy change has been announced by the Philippine Amusement and Gaming Corporation (Pagcor): the ban on the establishment of new Philippine Offshore Gaming Operator (POGO) hubs. Alejandro Tengco, chairman and CEO of Pagcor, disclosed this on Wednesday during a Senate investigation into alleged illegal POGO activities.
Last July, Pagcor introduced new regulations for POGOs, now officially termed “Internet Gaming Licensees” (IGLs). Tengco emphasized that Pagcor would strictly monitor the 43 remaining licensed POGO firms in the country. To ensure compliance, Pagcor will deploy “24/7 teams” to oversee their operations. Tengco stated, “Hopefully that can deter [illegal activities], and if we notice anything, we can immediately report it to the police,” as quoted by the Philippine Daily Inquirer.
The ban on new POGO hubs is part of Pagcor’s ongoing efforts to enhance regulatory oversight. Tengco mentioned, “We’re coming out with certain guidelines. We’re already banning hubs.” However, he did not provide a detailed explanation of what constitutes a POGO hub.
Political Pressure and Industry Criticisms
The decision to ban new POGO hubs comes amid increasing calls from various political groups to ban POGOs entirely. Tengco noted that Pagcor would support any decision made by Congress and President Ferdinand Marcos Jr regarding a complete ban.
The POGO sector has faced considerable criticism over issues such as tax evasion, illegal employment, and failure to pay proper fees. These problems have tarnished the industry’s reputation, as highlighted in previous statements by Pagcor.
Arsenio Balisacan, Secretary of the National Economic and Development Authority (NEDA), mentioned that the idea of banning POGO licenses has not been formally discussed among cabinet officials.
During the Senate hearing, Tengco revealed that former presidential spokesperson Harry Roque had lobbied for the POGO firm Lucky South 99 Inc in July 2023. This firm recently faced a raid over alleged human trafficking and other illegal activities and owed $500,000 in arrears.
Tengco clarified that Roque did not pressure Pagcor to resolve Lucky South 99’s issues but noted that Roque’s name appeared in a reapplication for its license, which was set to expire last October. Tengco had previously mentioned that a former government official had lobbied for a license for unidentified illegal POGO operations.
In response, Roque issued a statement denying any advocacy for illegal POGOs or involvement with Lucky South 99. He asserted, “I clarify that I did not consent to nor was I informed of my name’s inclusion in any submission by Lucky South Pagcor concerning license renewal.”
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