Philippine Government to End POGOs by December 31, 2024: A Necessary Step Toward Safety and Stability

The Philippine government’s choice to close all Philippine Offshore Gaming Operators (POGOs) by December 31, 2024, represents a significant shift in how the country handles gambling. This move, detailed in Executive Order No. 74 by President Ferdinand Marcos Jr., follows years of rising worries about POGOs being linked to organized crime, human trafficking, and money laundering. Although POGOs were initially viewed as a financial advantage for the Philippines, they’ve turned into a growing source of social and security issues that the government can’t overlook anymore.

What Are POGOs?

Philippine Offshore Gaming Operators, or POGOs, are online gaming firms located in the Philippines that primarily cater to Chinese customers. Since their licensing by PAGCOR in 2016, they have contributed to the economy by generating tax revenue and creating job opportunities.

However, POGOs have been associated with various crimes, including illegal gambling, human trafficking, and labor exploitation, leading to significant controversy. In July 2024, during his State of the Nation Address, President Bongbong Marcos declared a ban on these operations, pointing out their harmful effects on society and the challenges they pose for law enforcement.

The Rise of Crime and Exploitation

POGOs have been tied to a bunch of criminal stuff, like money laundering and human trafficking. A standout case is Alice Guo, a Chinese national who got arrested in 2024 for her involvement in a massive money laundering operation. This situation really brought to light the dangers linked to the POGO industry. It showed that some POGOs have turned into hotspots for illegal financial activities, which has seriously hurt the sector’s reputation.

Guo’s arrest is part of a larger pattern, as other Chinese nationals, including individuals linked to the recently closed Lucky South 99 POGO, have encountered similar accusations. Lucky South 99 was among the biggest POGO companies but was shut down by PAGCOR after investigations revealed its involvement in human trafficking and illegal gambling activities. This closure came after a series of other notable POGO shutdowns for breaching Philippine laws.

Political Support for the Ban

Senator Risa Hontiveros is at the forefront of efforts to close down POGOs, highlighting concerns over human rights violations and the mistreatment of foreign workers. She is advocating for robust legislative measures to put an end to their activities.

Senator Sherwin Gatchalian is also  all for the ban, claiming that POGOs lead to more crime and shady dealings, and that the money they bring in just doesn’t outweigh the dangers. He’s put forward the Anti-POGO Act of 2024, which seeks to completely outlaw offshore gaming operators.

In the House of Representatives, legislators such as Dan Fernandez and Ace Barbers support initiatives aimed at tackling the social and criminal challenges associated with POGOs.

The Impact of the Ban

The POGO ban is going to hit the economy hard in the short run. These operations have brought in billions through taxes and fees, so shutting them down will definitely impact revenue. Sectors like real estate, retail, and tourism that depended on foreign POGO employees might see a drop in business, and we could end up with a lot of empty office spaces in Metro Manila.

The government remains confident that the long-term advantages will surpass the drawbacks. The shutdown is intended to cut down on crime, boost public safety, and create a more ethical business scene. They’re also working on retraining workers who lost their jobs, helping them transition into fields like BPO, tech, and tourism.

The Situation for Workers

The POGO shutdown is going to hit foreign workers hard, especially those from China, with more than 20,000 likely to pack up and leave the Philippines. A lot of them came in on special visas that will no longer be valid once the POGOs shut down. Some have already started to leave on their own, but others could face deportation if they don’t comply with government directives.

A Shift in Public Sentiment

Many Filipinos support the POGO shutdown, seeing it as necessary to remove the criminal activities tied to the industry. Cases like Alice Guo’s and reports of human trafficking have strengthened public backing for the decision. Many believe the country should focus on industries that promote ethical and sustainable growth instead of offshore gambling with serious social and legal risks.

However, some critics think that if there were stricter regulations and better enforcement, the issues could have been fixed without completely shutting down the industry. They argue that POGOs could have still played a role in boosting the economy with the right supervision.

Conclusion

The decision to shut down POGOs marks a major shift in the Philippines’ gambling policy. Despite generating revenues, the crime, exploitation, and social problems they created were too much to ignore. Supported by lawmakers, the shutdown prioritizes public safety and national security over short-term profits.

While there will be short-term economic losses, the government aims to create a more stable, ethical, and sustainable business environment. This bold move is seen as a step toward a safer and more responsible Philippines.