Opposition to Philippine offshore gaming operators (POGOs) is intensifying as business associations, economic think tanks and political groups join forces to call for a ban on the operations. Critics argue that the social harm far outweighs any economic benefits.
In a recent joint statement, several influential organizations, including the Makati Business Club, the Treasurers Association of the Philippines and the Management Association of the Philippines, expressed their support to the Department of Finance (DOF) and the National Economic and Development Authority (NEDA). ) proposal to ban POGOs.
Economic contribution is minimal
The statement, supported by the Foundation for Economic Freedom, the Justice Reform Initiative, and the University of the Philippines School of Economics Alumni Association, highlighted that POGOs will contribute only 0.2% to the country’s GDP in 2023. They say POGOs bring serious social costs, such as human trafficking, kidnapping and money laundering issues, as detailed in recent Senate hearings and NEDA's statement.
According to a Philippine National Police report, 55% of kidnapping cases in 2022 were related to POGOs. Critics warn that these crimes could hamper economic growth, damage investor perceptions and affect international relations.
Political and social advocacy
Prominent Filipino figures and organizations, led by retired Supreme Court justices Antonio Carpio and Conchita Carpio Morales, have called on President Ferdinand Marcos Jr. to immediately cancel POGO's licenses. Their open letter cited the Chinese Embassy's position that all forms of gambling, including online gambling by Chinese citizens, are illegal under Chinese law.
The letter also criticized the Philippine Amusement and Gaming Corporation (PAGCOR) for issuing licenses for POGOs. The letter pointed out that POGOs cooperate with criminal groups and are involved in activities such as illegal detention, torture, sex trafficking and tax evasion.
PAGCOR’s position
PAGCOR Chairman and CEO Alejandro Tengco opposes a ban on all forms of online gambling. He advocates strict regulation to strengthen tax collection and curb illegal gambling activities. Tengco believes that bringing illegal operators into compliance could significantly increase government revenue, potentially by Php200 billion to Php250 billion.
Meanwhile, a complete ban on POGOs could lead to massive job losses, according to a local media report. A February 2020 report showed that 82.3% of POGO employees were foreigners, while only 17.7% were Filipinos. The Service Providers Association of the Philippines (ASPAP) said the industry directly employs some 11,776 Filipinos and indirectly supports employment in many related industries.
Call on the President to decide
As calls for action grow louder, President Marcos faces increasing pressure to make decisive decisions. Business groups, economic experts and social advocates have urged the government to prioritize the country's long-term welfare over short-term financial gains from POGOs. The decision whether to ban POGOs will have a significant impact on the Philippines' economy, social structure and international status.
