With the Philippine government’s December 31st deadline for the closure of all Philippine Offshore Gaming Operators (POGOs) drawing nearer, the industry is heading for a major transformation. Once a booming sector of the economy, POGOs are now under scrutiny in a crackdown aimed at combating crime, tax evasion, and other social ills. As the deadline approaches, smaller operators are increasingly attempting to go under the radar, challenging the government’s determination.
Reasons behind the POGO ban
POGOs once flourished in the Philippines, attracting significant foreign investment and generating considerable tax revenue. At their peak, around 300 licensed operators were in business. However, the sector became controversial due to a growing number of reports of crimes, tax evasion, and worker exploitation. The government’s stance is clear: the harms outweigh the benefits.
Government’s crackdown efforts
The Presidential Anti-Organised Crime Commission (PAOCC), along with law enforcement agencies, is gearing up for a series of raids in early 2025. Gilbert Cruz, the Executive Director of the PAOCC, confirmed that intelligence-gathering activities are already underway, with information about suspected illegal operations being compiled.
Cruz has been vocal about the challenges of dismantling these setups. He emphasised the need for local government cooperation, warning that officials who turn a blind eye to illegal POGO operations could face consequences. In an interview, Cruz stated, “We’ve received numerous reports that these former big-time POGOs are scouting for safe places to operate on a smaller scale. We have a lineup of POGO raids early next year.”
The crackdown has left an estimated 8,000 foreign nationals in limbo. These individuals, whose work visas have been downgraded to tourist status, are suspected of being involved in smaller-scale operations. Urban areas like Metro Manila offer an advantage to these clandestine operators. The dense population and multicultural environment make it easier for them to blend in. Local governments play a critical role in enforcing the ban. Mayors and council officials are expected to assist in identifying and shutting down illegal operations.
“POGOs are easier to expose in remote areas with no foreigners. We’ll check if our local government executives will truly follow through on our directive to crack down on POGOs,” Cruz noted.
The closure of POGOs presents its own set of challenges. While the cost of crime must be countered to allow for better public safety, the matter of lost tax revenues and the potential economic backlash must not be overlooked. The experiences of the Philippines hold valuable lessons for other states grappling with similar scenarios.
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