Multiple government agencies in the Philippines advocated for a total ban on Philippine offshore gaming operators (POGOs) during a Senate committee hearing on Tuesday. The Philippine Department of Finance (DOF) stated that the country loses more than 99 billion pesos (1.5 billion euros) annually due to the operation of POGOs, as the negative impression brought by these activities affects the country's image, resulting in lost investment and reduced tourism revenue.
The National Economic and Development Authority (NEDA) has expressed similar concerns, emphasizing that if POGOs continue to operate, potential economic losses could be as high as 144 billion pesos (2.26 billion euros) and could have an impact on international relations, thus affecting the tourism industry.
In addition, the National Security Council (NSC) also issued a warning, discussing the potential threats to national security posed by POGOs and their operations, and urging the adoption of legislative measures to ban illegal POGO activities.
Online Gambling Regulation
Senator Sherwin Gatchalian stressed the need for tighter regulation of POGOs as well as online gambling, citing ease of access and the proliferation of unregulated websites. In X's post, Gatchalian thanked various government agencies for supporting the call to ban POGOs.
Financial impact
Meanwhile, the Philippine Amusement and Gaming Corporation (PAGCOR) reported monitoring thousands of illegal online gambling sites, stressing that a total ban on online gambling could cost 35 billion to 40 billion pesos (549.6 million to 628.2 million euros) ) loss of income. PAGCOR Chairman and CEO Alejandro Tengco stressed the importance of taxation and regulation to ensure funds benefit the country.
Despite calls for a ban, Tengco still advocates regulation rather than ban, arguing that proper oversight can prevent revenue losses and direct funds to national development projects.
According to a recent PAGCOR report, the online gaming or electronic gaming (E-Games) sector was a prominent performer in the Philippine gaming industry, generating revenue of 20.66 billion pesos (323.9 million euros) in the first half of 2024, accounting for 45.53% of the agency’s gaming revenue .
Future policy direction
The debate continues as stakeholders continue to weigh the economic benefits, social costs and national security risks associated with POGOs and online gambling. A Philippine Senate committee continues deliberations on the legislative measure, with various government agencies and industry stakeholders having mixed views. This comprehensive approach aims to balance economic interests with regulatory and safety concerns in formulating future policies regarding POGOs and online gambling in the Philippines.
