The remaining Philippine Offshore Gaming Operators (POGOs) have promised to stop operations and leave the nation, according to a statement released by the Department of Justice (DOJ) on September 19. This action is a part of a larger effort to dissolve the contentious gaming industry, which has come under increased attention because of its links to illegal activity. Through a specialized task force that includes the Philippine Amusement and Gaming Corporation (Pagcor), the Presidential Anti-Organized Crime Commission, and the Bureau of Immigration, the DOJ is coordinating this shutdown.
To aid the estimated 20,000 Filipino workers employed by POGOs, the Department of Labor and Employment will assist in finding new job opportunities. In contrast, foreign workers must organize their return to their home countries. This effort aims to mitigate the impact on local employees while ensuring compliance with the government’s directive.
The Decline of POGOs
POGOs peaked in popularity in 2019, boasting over 300 operators and contributing approximately ₱166.49 billion (£2.226 billion/€2.667 billion/$3 billion) annually to the Philippine economy. This included ₱7 billion in licensing fees to Pagcor. However, the negative consequences soon overshadowed the economic benefits. Allegations of crime, including kidnapping, significantly tarnished the industry’s reputation. Secretary of Finance Ralph Recto estimated that the total economic costs amounted to ₱265.74 billion, leading to a net loss of over ₱99.52 billion annually.
The social costs, Recto noted, are “unquantifiable,” highlighting the severe impact on victims of criminal activities. He remarked, “Allowing POGOs to operate eroded institutional integrity.” Recent raids in Pampanga and Tarlac revealed further illegal activities, including online scams, money laundering, and human trafficking, prompting the DOJ to investigate allegations of a mass grave linked to these operations. Following these events, President Marcos called for an end to all POGO activities, whether legitimate or not.
In the DOJ’s September 19 statement, it was confirmed that the 41 remaining POGOs have indicated their intention to comply with President Marcos’s directive and halt operations. The task force will formulate clear guidelines to ensure a complete ban on POGO operations throughout the country by the year’s end, while also safeguarding the welfare of affected workers.
A job fair for local workers will take place on October 10. Furthermore, starting October 16, 2024, all foreign-worker visas will be downgraded to tourist visas, necessitating their departure from the Philippines within 60 days or facing involuntary repatriation.
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