The Philippines gaming regulator announced on Tuesday that it will cancel the licenses of offshore gambling firms, most of which are Chinese-owned, in a bid to eliminate these operators by the end of the year. This directive follows President Ferdinand Marcos’ order to shut down Philippine Offshore Gaming Operators (POGOs) due to their alleged links to criminal activities, Reuters news report said.
Alejandro Tengco, chairman of the Philippine Amusement and Gaming Corp (PAGCOR), emphasized the urgency of the crackdown, stating, “No problem in closing down POGOs because I can invoke national security and the president’s order.”
The online gaming industry in the Philippines emerged in 2016, exploiting liberal laws to attract customers from China, where gambling is prohibited. At its height, there were 300 POGOs operating in the country. However, the pandemic and stricter tax regulations have forced many operators to relocate or operate clandestinely. Currently, only 42 firms hold licenses, employing around 63,000 Filipino and foreign workers.
Tengco acknowledged the challenge for law enforcement in preventing these firms from going underground. The government could lose approximately 23 billion pesos ($400 million) annually in license fees and taxes from POGOs.
