Philippine Offshore Gaming Operations: Ensuring Legal Compliance and Security

by Frank McDougall
in Action, News
on 13 June 2024

The Philippine Amusement and Gaming Corporation (Pagcor) has taken decisive action to address concerns regarding the presence of Philippine Offshore Gaming Operation (Pogo) sites near military camps. Pagcor Chairman, Alejandro Tengco, firmly stated that no licenses have been issued to Pogo hubs located next to military camps. This reassurance follows Defense Secretary Gilberto Teodoro Jr.’s call for the government to halt Pogo operations near military bases.

Tengco made it clear that any Pogo hubs situated near military camps without proper licenses are operating illegally. This statement underscores Pagcor’s commitment to upholding legal standards and ensuring the integrity of the industry. The concerns raised by security expert Chester Cabalza about the possibility of foreign interference through Pogo sites are being taken seriously.

Recent raids in areas such as Porac, Pampanga, have shed light on the existence of unlicensed Pogo sites. Investigations revealed suspicious findings, including a suspected People’s Liberation Army uniform and insignia. Additionally, the alleged involvement of Bamban, Tarlac Mayor Alice Guo in an unauthorized Pogo site has raised questions about her identity and citizenship. Nonetheless, Tengco clarified that these specific Pogo sites in Porac and Bamban are among the 250 offshore gaming sites that had their licenses revoked by Pagcor in a previous crackdown.

Pagcor has implemented stringent measures to address non-compliance. Out of approximately 300 Pogo sites placed under probationary status last year, only 46 have successfully regained their licenses after undergoing thorough scrutiny. Furthermore, Pagcor conducted another crackdown on these remaining 46 sites, resulting in the accreditation of only 43 internet gaming licensees (IGL). It is important to note that three of these licensees have recently been suspended for violating Pagcor regulations.

It is worth highlighting that the majority of the 43 active IGL sites are located within Metro Manila, with only a few on the outskirts of the city. Pagcor is closely monitoring these licensees to ensure their compliance with regulations. Tengco emphasised that there is no evidence to suggest illegal activities taking place at these licensed sites.

In conclusion, Pagcor is committed to ensuring the legality and security of Philippine Offshore Gaming Operations. By revoking licenses from non-compliant Pogo sites and intensifying scrutiny on remaining licensees, Pagcor aims to protect both national security and the integrity of the gaming industry.

Additional relevant facts about Philippine Offshore Gaming Operations (POGOs):

– POGOs are online gambling companies that cater to customers primarily based in China.
– The industry has experienced tremendous growth in recent years, with hundreds of POGO sites operating in the Philippines.
– POGOs employ a significant number of foreign workers, particularly Chinese nationals who work as customer service representatives, IT professionals, and other related roles.
– The influx of Chinese workers in the industry has raised concerns about potential security risks and illegal activities.
– POGOs have been a subject of controversy due to issues such as tax evasion, labor exploitation, and criminal activities.

Most important questions and their answers:

1. Are all POGO sites operating legally?
No, there have been instances of unlicensed and unauthorized POGO sites operating in the Philippines, which is a violation of the law.

2. How is Pagcor addressing non-compliance in the POGO industry?
Pagcor has implemented stringent measures to address non-compliance, including revoking licenses from non-compliant POGO sites, conducting thorough scrutiny of POGO licensees, and suspending those who violate regulations.

Key challenges or controversies associated with POGOs:

1. Security concerns: The presence of POGOs near military bases raised concerns about national security and the potential for foreign interference.

2. Regulatory compliance: Ensuring that POGOs adhere to legal requirements, such as proper licensing and taxation, has been a significant challenge for authorities.

3. Social issues: POGOs have been associated with various social issues, including the influx of foreign workers, strain on housing and infrastructure, and potential negative impacts on local communities.

Advantages of POGOs:

1. Economic boost: POGOs contribute significantly to the Philippine economy through taxes, job creation, and real estate demand.

2. Foreign investments: The presence of POGOs attracts foreign investors and brings capital into the country.

Disadvantages of POGOs:

1. Potential security risks: The industry’s connection to China and the presence of foreign workers raise concerns about national security, money laundering, and other illicit activities.

2. Social and cultural concerns: POGOs have been criticized for their impacts on local communities, including the displacement of locals, cultural clashes, and increased crime rates.