Philippine President Ferdinand Marcos has announced a complete ban on offshore gaming operators (POGO) for a month now. Despite the ban taking immediate effect and all operations to be shut down by December 31, 2024, the announcement has sparked considerable controversy and concern. The details of how the ban will be implemented remain unclear.
Gaming law expert Tonet Quiogue told AGB that while the president has the authority to announce such a ban, a formal legal framework requires additional steps.
Tonet explained: "Congress still has the power to enact legislation concerning the legality or illegality of certain industries or businesses in the Philippines through the Senate and the House of Representatives."
To make the ban a permanent law, a bill must be submitted to the House of Representatives and go through the standard legislative process, including three readings and presidential approval. Tonet noted, "The bill still needs more details and clarity, but that is the purpose of the legislative process."
As a lawyer and advisor to local and international gaming companies, Tonet suggests: "The best thing we can do is maintain the status quo and wait for clear guidance from the Philippine Amusement and Gaming Corporation (PAGCOR). I believe that once they consult with the relevant government agencies, the guidance will be issued in the coming days or weeks."
AGB learned that although foreign POGO workers must voluntarily leave the Philippines by September 24 or face deportation, most POGO operators are still operating, waiting for further notice from PAGCOR.
However, some operators have shown intentions to move towards underground activities, while others may seek licensing from the Cagayan Economic Zone Authority (CEZA). According to CEZA CEO Katrina Ponce Enrile, the interactive gaming licenses issued by CEZA are not covered by the POGO ban. These interactive gaming licenses have some similarities with POGO, but so far, there has been little discussion on the feasibility of switching from one license to another.
Misunderstandings about the "Upgraded" POGO
Earlier this month, the Philippine Amusement and Gaming Corporation PAGCOR mentioned that despite President Ferdinand Marcos Jr.'s order to shut down its jurisdiction's gaming operations, it is still exploring the possibility of launching an "upgraded" version of PAGCOR.
The head of the Philippine gaming regulatory agency, Alejandro H. Tengco, made these remarks at a House Appropriations Committee meeting. This has led to ongoing speculation about the future of POGO. However, Tonet pointed out, "These remarks might have been misunderstood."
"PAGCOR's position remains to enforce the president's ban on POGO, and they are working with other agencies to ensure smooth implementation of this directive. Mentioning 'upgrades' was likely because a congressman inquired about potential plans for an 'upgraded' version of POGO in the future. Chairman Tengco politely responded that it is a topic for future consideration. However, there are currently no plans to resume POGO or introduce a comprehensive gaming license (IGL) in the near future."
BPO Unaffected
The business process outsourcing (BPO) sector that supports these gaming companies will continue to operate.
Last month, the PAGCOR chairman stated that up to 14 B2B service companies that cooperate with overseas gaming operators and employ over 9,000 Filipinos should not be affected by the ban.
Tengco stated that these BPOs provide critical support services to gaming companies in Australia, Canada, Europe, and the USA, but they do not directly participate in gaming activities; instead, they provide auxiliary services to assist the main operations of gaming.
This distinction is crucial, as it means these BPOs are not gaming license holders and therefore should not be subject to the same restrictions imposed on IGLs.
