Multiple sources confirm that despite President Ferdinand Marcos Jr.'s verbal order to shut down all Philippine offshore gaming operators (POGO) by the end of the year, no executive order (EO) has been issued four months later, leaving the gaming licenses issued by freeports and economic zones in a "gray area."
"No executive order needed. The ban is clear. All POGO licenses issued by the Philippine Amusement and Gaming Corporation (Pagcor) will be considered revoked by December 31," said Interior Minister Jonvic Remulla.
"Before the President's direct order, the IGLs (internet gaming licenses) issued by different agencies remain a gray area. Meanwhile, we will focus on combating both legal and illegal POGOs," Remulla added.
A source from Pagcor mentioned that the agency is waiting for the executive order. Freeports and economic zones have a certain degree of autonomy, and some areas can even issue their visas.
One of the large economic zones with its own IGL is the Cagayan Economic Zone Authority (CEZA), managed by Katrina Ponce Enrile, daughter of Marcos' chief presidential legal counsel Juan Ponce Enrile.
Alejandro Tengco, chairman of the Philippine Gaming Corporation, told a Senate panel investigating illegal POGOs in July that CEZA indeed is a contentious point, just days after Marcos' verbal directive. Tengco said at the time, "This is the only area I see the complexity, but we will see how to resolve it."
Tengco previously stated that the Aurora Pacific Economic Zone and Freeport Authority (APECO) does not issue licenses without business, and the Authority of the Freeport Area of Bataan (AFAB) needs Pagcor's approval to issue licenses.
Rappler also inquired about this matter with Attorney General Menardo Guevarra, as Tengco had mentioned in July that they would discuss it further. Guevarra told Rappler, "[Chairman Tengco] has not yet submitted this matter to me. Perhaps he has already raised this issue with the OGCC, which is the statutory advisor to the Philippine Gaming Corporation and other GOCCs."
The main function of the Office of the Government Corporate Counsel is to act as the chief legal office for all government-owned or controlled corporations (GOCC), their subsidiaries and other derivatives, and government-acquired asset companies.
"Conclusive evidence"
On Thursday, October 31, authorities raided a gaming center that had received a special category business process outsourcing license issued by AFAB. The design of POGO is multi-tiered, such that many companies under this umbrella are on paper BPOs.
Winston Casio, spokesperson for the Presidential Anti-Organized Crime Commission (PAOCC), could not comment on whether the presidential ban includes economic zones or freeport areas, but he stated, "This raid powerfully demonstrates that some investment promotion areas are being abused to allow nearly fraudulent offshore gaming activities."
Casio said, "The national government must strive to address this gap."
At a Senate hearing in July, Tengco stated that according to AFAB's charter, the ban "does not apply to AFAB," and CEZA is a special case.
"CEZA has its own charter, according to which it is the only export processing agency authorized to issue licenses for any type of gaming business," Tengco previously stated.
The Bureau of Immigration is lowering the visa level for foreign workers applying to work in Philippine offshore gaming operator centers. Joel Anthony Viado, director of the Bureau of Immigration, announced in early October that Philippine offshore gaming operator workers could voluntarily downgrade their visas from work visas to temporary visitor visas, after which they can stay in the Philippines for another 59 days "to settle their affairs."
Viado said, "Workers who fail to leave the Philippines before December 31, 2024, will face deportation proceedings and be blacklisted from re-entering the Philippines."
Without a written order from Malacañang Palace, it remains controversial whether the ban and possible deportation of workers also apply to CEZA, the founder of which is now the chief legal counsel at Malacañang Palace.
Local media Rappler has contacted Malacañang Palace, but Communications Minister Cesar Chavez has not yet responded.
