Three months after verbally issuing the command, President Ferdinand Marcos finally issued Executive Order No. 74, which details who should be included in the comprehensive ban on Philippine Offshore Gaming Operators (POGO) announced in his State of the Nation Address at the end of July.
This executive order was signed on November 5, eagerly awaited by businesses and government agencies, aiming to address the POGO issues Marcos announced in his national audit report on July 22 — specifically whether it covers special categories of Business Process Outsourcing (BPOs) and licenses issued by the Cagayan Economic Zone Authority (CEZA).
However, details are still lacking, especially regarding casinos and the Cagayan Economic Zone Authority (CEZA), an agency founded by Juan Ponce Enrile, Marcos's chief presidential legal counsel at Malacañang Palace.
"While I appreciate the objectives of the executive order and am grateful for the reintegration of displaced workers into society, there are still some concerns," Senator Risa Hontiveros said on Saturday, November 9.
Firstly, the executive order explicitly states that the ban covers both illegal and licensed POGOs, as well as those newly named as Internet Gaming Licenses or IGLs. Illegal POGOs are self-explanatory, while legal POGOs fall under Section 2(D), which mandates their closure by the end of the year.
The complexity of the ban lies in the fact that many BPOs provide services to POGO or IGL licensees, but are not themselves POGO or IGL licensees. A source from the Philippine Amusement and Gaming Corporation (Pagcor) previously told the media that they are waiting for the executive order to clarify the status of special category BPOs.
Although the executive order does not specifically mention "special category of business process outsourcing," it states that the ban covers "other offshore gaming licensees." The executive order defines "other offshore gaming licensees" as including "gaming agents and certification service providers that offer auxiliary services to offshore gaming licensees."
However, Hontiveros raised another concern. Section 1(b) of the executive order stipulates that offshore gaming operations "do not include online gaming activities conducted in casinos operated by the Philippine gaming company, licensed casinos, or integrated resorts with intermediary agreements."
"Does this mean you can operate POGO inside casinos like City of Dreams? Like Fontana? Or even within resorts that have casinos?"
Does this include CEZA?
Another major question is whether the ban covers licensees of the Cagayan Economic Zone Authority (CEZA), which has its own offshore gaming regulatory framework under its charter (Republic Act No. 7922 drafted by former Senator Enrile). Enrile's daughter, Katrina Ponce Enrile, is the CEO of CEZA.
CEZA's offshore gaming is known as i-Gaming. Katrina Enrile told the House of Representatives on July 31, "CEZA enjoys independence in its gaming licensing and regulation within its jurisdiction, separate from Pagcor and other national government agencies."
Even Hontiveros stated, "I am still unclear whether the ban covers CEZA and other economic zones."
Executive Order 74 does not specifically mention CEZA. In fact, the executive order defines "other offshore gaming licenses" as "licenses authorized under their respective charters and supervised and/or governed by Pagcor." Executive Order 74 even specifically mentions that AFAB (Authority of the Freeport Area of Bataan) is regulated by Pagcor, and the offshore gaming licenses within the Aurora Pacific Economic Zone and Freeport Authority (APECO) have been transferred to Pagcor.
"Please note that under its charter, CEZA is not regulated by Pagcor. This is why it is excluded from the executive order," Malacañang Palace Communications Minister Cesar Chavez told the media.
So, are CEZA license holders protected by this ban?
Pagcor and the Presidential Anti-Organized Crime Commission (PAOCC) have submitted this matter to Malacañang Palace. Rappler has asked Justice Minister Jesus Crispin "Boying" Remulla and Interior Minister Juanito Victor "Jonvic" Remulla for comments, but as of this writing, neither has responded. We will update this report once they do.
Chavez told the media, "The Executive Secretary also issued a memorandum today instructing CEZA to comply with the directive on the POGO ban."
The memorandum referred to by Chavez was issued by Executive Secretary Lucas Bersamin on November 5, instructing CEZA CEO Katrina Ponce Enrile to "comply with the President's instructions regarding the ban" announced during the SONA on July 22, 2024.
However, the wording of the memorandum still leaves room for interpretation.
Under Republic Act No. 7922 (also known as the "1995 Cagayan Economic Zone Act"), you are hereby instructed to comply with the President's directive issued in his State of the Nation Address on July 22, 2024, regarding the immediate prohibition of Philippine Offshore Gaming Operators or Philippine Internet Gaming License holders, and to abide by applicable laws, regulations, and provisions.
If the memorandum is consistent with the CEZA charter, then Section 6(c) states that the law authorizes CEZA "to approve, accept, recognize, and permit any local or foreign enterprise, business, or investment to enter the zone, subject only to the restrictions imposed by CEZA under the provisions of this Act and the Constitution."
The Bureau of Immigration has been monitoring the visa downgrades of those who have obtained work visas directly related to POGO and IGL. If under its charter Section 4(e), they have "the responsibility and authority to grant such permanent resident status to special investors," and these special investors and their families "shall have the right to freely enter and exit the zone without any special authorization from the Bureau of Immigration," how does this cover CEZA?
Indeed, according to travel records submitted to Senator Risa Hontiveros, the controversial Chinese tycoon She Zhiqiang (who was imprisoned in Thailand for an illegal gambling group and claims to be a Chinese spy) was able to enter Thailand with a CEZA visa.
Local media asked Chavez for a clearer statement: Should CEZA license holders also gradually shut down and cease operations? Chavez simply repeated, "In the memorandum from ES Bersamin, CEZA is instructed to comply with the President's directive on the POGO ban issued during the SONA on July 22, 2024."
Local media asked government lawyer, Attorney General Menardo Guevarra. He said, "All POGOs, whether within the jurisdiction of the Philippine Gaming Company or not, should cease operations by December 31, 2024."
When asked for a clearer statement on CEZA, Guevarra said, "I will not preempt."
Hontiveros stated, "This only emphasizes the need for a clear law to advance a meaningful, clear, unambiguous, and comprehensive ban." She added that the anti-POGO bill is currently under review in the Senate.
