Since the beginning of this century, the city of Santa Ana in Cagayan Province, Philippines, has started the interactive gaming industry. However, due to the government's decision to shut down Philippine offshore gaming operators, the city has been severely affected.
Mayor Nelson Robinion stated that the ban on POGOs and the closure of online gaming facilities are expected to drag down the town's economy, resulting in the loss of up to 2,000 jobs and livelihood opportunities.
Robinion said that most workers, including those who have moved to the town, are facing uncertainty as the job market is unable to accommodate them.
Previously, the Malacañang Palace ordered the Cagayan Economic Zone Authority (CEZA), which is responsible for regulating the Cagayan Special Economic Zone and the Santa Ana Freeport, to comply with Executive Order No. 74, which prohibits all POGO operations.
The Cagayan Economic Zone Authority was required to revoke all POGO licenses within its jurisdiction and ensure a complete cessation of operations.
Dindo Danao, former public relations advisor for the Cagayan Economic Zone Authority, stated that the Cagayan Economic Zone was the first regulated interactive gaming jurisdiction in Asia, established in 2003.
By issuing licenses to offshore gaming operators, the Cagayan Economic Zone Authority launched the "i-gaming" project, attracting foreign investment and branding Santa Ana as a regulated gaming destination.
Danao said, "This was a unique marketing strategy," adding that CEZA hosted dozens of operators and helped fund the construction of an international airport and a cyber village.
Danao mentioned, "In 2016, the situation changed dramatically after the Philippine Amusement and Gaming Corporation (PAGCOR) introduced the POGO framework and offered more favorable conditions to operators."
He said that PAGCOR's centralized system caused most companies to relocate, making it difficult for CEZA to maintain its market share.
Danao stated that the closure of POGOs would bring economic difficulties to Santa Ana and its people.
He said, "The POGO industry was once thriving, providing jobs in customer service, logistics, security, and support, but the departure of POGOs has led to the unemployment of thousands of Santa Ana residents."