Philippine President Marcos Issues Permanent and Immediate Ban on POGOs
Philippine President Ferdinand Marcos Jr. has announced a permanent and immediate ban on Philippine Offshore Gaming Operators (POGOs) during his third State of the Nation Address.
Philippine President Ferdinand Marcos Jr. in a public appearance. (Source: Jamillah Sta Rosa/Pool Photo via AP)
LISTEN TO THIS ARTICLE:This ban is a response to the growing concerns over the illegal activities associated with POGOs, including financial scams, money laundering, and human rights violations such as human trafficking and kidnapping. The President's directive stipulates that all online gaming entities, now classified as Internet Gaming Licensees (IGL), must cease operations and exit the country within the year.
"Effective [July 22], all POGOs are banned. I hereby instruct Pagcor [the country's gaming regulator, the Philippine Amusement and Gaming Corp] to wind down and cease the operations of POGOs by the end of the year."
The crackdown on POGOs is expected to have significant repercussions for employment within the sector. DOLE Secretary Bienvenido Laguesma has previously indicated that the ban could result in approximately 22,000 job losses.
In anticipation of this, President Marcos has tasked the Department of Labor and Employment with developing assistance programs for those who will be displaced by the ban. The government's proactive stance aims to mitigate the economic impact on affected workers and facilitate their transition to new employment opportunities.The President's announcement has been met with mixed reactions. While some applaud the move as a necessary step to curb illegal activities and protect the welfare of the Filipino people, others express concern over the economic implications. The challenge for the government moving forward will be to balance the enforcement of the ban with the provision of support for those affected, ensuring that the transition away from reliance on POGOs as an economic driver is both humane and sustainable.
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PAGCOR Can't Save IGLs
Historically, POGOs have been a source of substantial revenue for the Philippines, attracting foreign investment and generating employment. However, the social costs have become increasingly apparent, with reports of criminal activities casting a shadow over the industry.
In response to these concerns, PAGCOR, the Philippine Amusement and Gaming Corporation, introduced stricter regulations for offshore operators in July of last year. Despite these efforts, the government has deemed it necessary to take more drastic measures to protect the integrity of the country's financial and social systems.
In May, prior to the ban, PAGCOR had converted 13 provisional IGL permits into full licenses, reflecting a regulatory environment that sought to legitimize and control the industry. As of July 16, there were 38 IGL permit holders authorized to offer gaming services to customers located offshore, with an additional seven operators holding provisional licenses. The ban represents a significant policy shift, signaling the government's commitment to addressing the negative externalities associated with the gaming industry.
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