Rolling the dice: the high-stakes gamble of POGOs in the Philippines

By Xander Ledesma

The National Bureau of Investigation (NBI) Region 7’s recent probe into four alleged Philippine Offshore Gaming Operations (POGOs) in Cebu underscores the complex and contentious nature of the now banned POGO industry in the Philippines. Initiated on October 28, 2024, this investigation reflects the government’s intensified efforts to regulate and scrutinize an industry that has been both an economic boon and a source of significant concern.

The inception of POGOs dates back to 2016, under the administration of President Rodrigo Duterte. The Philippine Amusement and Gaming Corporation (PAGCOR) began issuing licenses to offshore gaming operators, aiming to attract foreign investment and capitalize on the lucrative online gambling market, particularly targeting Chinese clientele. This move led to a rapid proliferation of POGOs, with the number of licensed operators peaking at over 300 in 2019, generating substantial revenue for the government. 

However, the swift expansion of POGOs has been accompanied by a host of issues. Reports have linked these operations to transnational crimes, including human trafficking, money laundering, tax evasion, and cyber fraud. Notably, in March 2024, a raid in Bamban town, in the province of Tarlac, uncovered a POGO hub involved in illegal activities, leading to the rescue of 868 workers from various countries and implicating local officials in the process. 

The situation is further complicated by China’s stringent stance on gambling. Gambling is illegal in China, and the Chinese government has consistently urged the Philippines to ban POGOs, citing concerns over cross-border gambling and associated criminal activities. This has placed the Philippines in a delicate position, balancing economic interests with diplomatic relations and internal security. 

Other Asian countries have also grappled with the challenges posed by online gambling. For instance, Cambodia banned online gambling in 2019, aiming to curb criminal activities and protect its citizens. Similarly, Vietnam has stringent regulations against online gambling, reflecting a regional trend towards stricter control over such operations.

The NBI’s investigation in Cebu is a microcosm of the broader national effort to address the complexities of the POGO industry. While proponents argue that POGOs contribute to economic growth through job creation and tax revenue, the associated social costs and security risks cannot be overlooked.

As the Philippines navigates this multifaceted issue, it is crucial for the government to implement comprehensive regulatory frameworks that ensure transparency, accountability, and strict enforcement of laws, and not just a wave-of-a-wand total ban ‘solution.’ This includes thorough vetting of operators, continuous monitoring of activities, and swift action against violations. Likewise, fostering international cooperation to combat transnational crimes linked to online gambling is essential if not a necessity.

So, while the economic benefits of POGOs are evident (at least to some sections of the country’s economy), they must not come at the expense of national security and social well-being. A balanced approach that safeguards the interests of the Filipino people, upholds the rule of law, and maintains harmonious international relations is crucial. The ongoing efforts by agencies like the NBI are commendable, but sustained vigilance and decisive action are necessary to address the challenges posed by the POGO industry effectively.