Former Philippine anti-corruption commissioner and deputy director of the Maritime Industry Authority, Nicasio “Nick” Conti, recently warned that government aid intended to help the impoverished population is increasingly flowing into local online gambling platforms, effectively becoming "state-sanctioned gambling funds."
He criticized, "Subsidies meant to combat hunger are now appearing on slot machines and electronic bingo tables. This is not only a misplacement of policy priorities but also a systemic exploitation built on the desperation of the people."
PIGO becomes a digital trap, targeting the low-income
Conti pointed out that with the Philippines imposing a ban on foreign gambling operators (POGO), the local gambling industry has instead expanded rapidly through the "PIGO" (Philippine Inland Gaming Operator) system. PIGO platforms mostly operate through mobile apps, with virtually no barriers, making them most accessible to the most vulnerable groups.
"They are not gambling for entertainment, but as a last hope. They truly believe that 500 pesos can turn into 5000 overnight."
Gambling revenue soars, who profits?
Data shows that by 2024, Philippine gambling revenue will reach 112 billion pesos, a 41% annual increase, with more than half coming from electronic games and electronic bingo. In contrast, POGO revenue only accounts for 3.07%. PAGCOR (Philippine Amusement and Gaming Corporation) also announced that net income has grown from last year's 7.9 billion pesos to 16.77 billion pesos, doubling.
Conti questioned, "We've closed the door on foreign platforms but opened a big window to local gambling. Ultimately, the operators and the government benefit, while the poor get poorer."
He stated that the current gambling structure is quietly channeling government subsidies into gambling platforms:
"This is like sending life-saving money into the pockets of slot machines, a state-led chronic plunder."
Is government subsidy flowing back into the gambling system?
Conti emphasized that while the government ostensibly provides aid to the impoverished, under the PIGO mechanism, this money ultimately becomes income for the national gambling system.
"The issue is not just the loss of money, but the loss of hope. If we continue to allow this system to exist, we are feeding a national-level gambling addiction ecosystem with our welfare system."
Senator: Every Filipino has "a casino in their pocket"
Philippine Senate minority leader Aquilino “Koko” Pimentel III also warned against the rapid expansion of PIGO. He pointed out, "Now everyone has a casino in their pocket," especially teenagers who can easily participate in gambling through mobile phones and electronic wallets.
He advocates for a total ban on PIGO, to prevent more widespread addiction, academic neglect, and economic exploitation.
"If we don't control this flood, we will face a more covert and stubborn gambling crisis."
Presidential office response: Ban not ruled out, all "data first"
In response to the criticism, deputy presidential spokesperson Claire Castro stated that the government will closely monitor the social impact of PIGO and assess its policy risks with a "data-first" approach.
"If PIGO becomes a social cancer like POGO, the president will not hesitate to impose a total ban."
Conti's urgent call: "A government making money from gambling can't save the poor"
At the end of the interview, Conti issued a stern warning: "A government running on the gambling industry can never be a savior for the poor." He called for a comprehensive review of gambling policies, to plug the regulatory loopholes in PIGO, and to strengthen national financial education to prevent the vicious cycle between poverty and gambling addiction.
