Home > Content > POGOs Under Fire: Philippine Regulator Shuts Down Illegal Operations, Introduces New License for Ethical Operators

POGOs Under Fire: Philippine Regulator Shuts Down Illegal Operations, Introduces New License for Ethical Operators

July 11, 2024

The Philippine Amusement and Gaming Corporation (PAGCOR) has taken a decisive step to halt the operations of Philippine Offshore Gaming Operator (POGO) hubs. This move aims to eliminate POGOs operating with unethical business practices by banning all of them initially. The likely plan is to introduce a new type of license for those that have operated ethically, ensuring a safer and more transparent gaming environment.

New Guidelines and Restrictions

PAGCOR’s new guidelines stipulate that no new POGO hubs will be approved. Although there isn’t an immediate mandate to close existing hubs, no new applications will be entertained. The focus will be on site-specific and building-specific operations to improve oversight. PAGCOR has reclassified POGOs as Internet Gaming Licensees (IGLs), and all operators are required to reapply for licenses under the new “Internet Gaming Licensing Regulations” that took effect on July 12, 2023.

To bolster enforcement, PAGCOR will deploy continuous monitoring teams to oversee the 43 licensed POGO firms. This strategy aims to deter illegal activities and ensure swift reporting to law enforcement if any suspicious activities are detected.

Legislative and Regulatory Developments

PAGCOR Chairman and CEO Alejandro Tengco has expressed support for any legislative actions by Congress and President Ferdinand Marcos to potentially ban POGOs entirely. This stance comes in response to increasing legislative calls for such measures due to the persistent criminal activities within the sector. The renaming of POGOs to IGLs is part of PAGCOR’s broader strategy to overhaul the regulatory framework and ensure stricter compliance.

The concept of self-contained POGO hubs, introduced in 2019, was meant to simplify regulation and minimize interactions between foreign workers and local residents. However, these hubs have faced significant controversy due to numerous reports of illegal activities.

Allegations and Investigations

Adding to the complexity, Tengco named former presidential spokesperson Harry Roque as the legal representative for the raided POGO firm, Lucky South 99. According to Tengco, Roque, along with a company representative, visited PAGCOR in July 2023 to discuss settling unpaid fees and renewing the firm’s license. Roque has denied involvement with illegal POGO operations, stating his client, Whirlwind Corporation, was merely seeking a rescheduling of arrears payments.

Roque’s involvement will be further examined in upcoming Senate inquiries as investigations into the operations and regulatory compliance of offshore gaming operators continue.

Economic Impact and Future Outlook

PAGCOR’s recent actions highlight its dedication to ensuring that the gaming industry adheres to legal standards, prioritizing the elimination of unethical practices. By banning all POGOs initially, PAGCOR aims to weed out those with bad business ethics and eventually reintroduce a new licensing system for operators who have demonstrated ethical conduct. The reapplication process for IGL licenses reflects this approach, with revised regulations intended to tighten oversight and accountability.

Despite the controversies, offshore gaming operations contributed P3.15 billion to PAGCOR’s revenues in 2023, which was a small fraction of the total gaming revenues of P79.37 billion. The overall Philippine gaming industry achieved record gross gaming revenues of P285.27 billion in 2023, surpassing pre-pandemic levels.

Commitment to Ethical Operations