POGO IN DISGUISE: TOTAL BAN SPARKS CONCERN OF IGL REBRANDING

After months of Senate investigations, President Ferdinand Marcos Jr. issued an executive order officially banning Philippine Offshore Gaming Operators (POGOs) and other offshore gaming-related services nationwide on November 8.

The move follows years of controversies surrounding the industry. Executive Order No. 74 points to its detrimental impact on the Philippines' reputation and foreign investment. 

All operators must cease operations by December 31 or earlier, marking the end of an era for POGOs in the country.

This decision caps nearly a decade of POGO-related controversies. What began as a promising profitable venture for the local economy soon became a breeding ground for crimes.

The Beginning of POGOs

Although online gambling companies have operated in the Philippines since 2003, the industry truly took off under former President Rodrigo Duterte's administration. In 2016, the Philippine Amusement and Gaming Corporation (PAGCOR) began formalizing POGOs by issuing licenses, citing their potential to contribute revenues for national gains.

POGO licensing charged hefty fees, requiring $200,000 (₱11.5 million) for e-casino and $150,000 (₱8.6 million) for sports betting, alongside application and annual licensing costs. 

The same year, China carried out a crackdown on online gambling, prompting Chinese nationals to flood into the Philippines to work in the industry.

Peak and Early Issues

The industry’s rapid expansion saw PAGCOR licensing over 300 firms by 2019, its peak year. By this time, POGOs had contributed over ₱7 billion in revenues and employed thousands of workers.

However, reports from the Department of Labor and Employment (DOLE) show that only 21,000 of the 118,000 workers in POGOs were Filipinos.

Furthermore, the Presidential Anti-Organized Crime Commission (PAOCC) flagged suspicious bank transactions connected to casino junkets. PAGCOR halted the issuance of licenses to firms due to several concerns.

Disrupted by the pandemic

The global COVID-19 pandemic dealt a severe blow to the POGO industry. An estimated 100,000 workers left the Philippines, and operations slowed dramatically. However, PAGCOR continued the issuances despite lockdowns in early 2020.

As operations resumed, suspicious financial transactions linked to POGOs reached an all-time high in 2022 according to the Anti-Money Laundering Council (AMLC). The Philippines was placed on the Financial Action Task Force’s (FATF) gray list for its inability to curb illicit financial transactions.

Alice Guo’s case

In early 2023, POGO-linked crimes reached alarming levels. But a Senate investigation in May this year centered on Alice Guo, former mayor of Bamban, Tarlac, exposed the dark side of illegal offshore gaming operations.

She was linked to the raid on the Zun Yuan Technology Incorporated compound in Tarlac where authorities uncovered an operation involving over 800 workers—500 of whom were foreign nationals—alongside luxury villas, underground bunkers, and hidden piles of cash.

According to records, Guo was a co-incorporator of the compound where the POGO hub is located. While she claimed to have divested from the real estate company before running for mayor, records show that she remained an incorporator through the issuance of permits by the Bamban government in 2022.

In short, Guo approved permits for her own business while serving as mayor—a clear violation of the Republic Act 3019 also known as the Anti-Graft and Corrupt Practices Act.

Guo faced charges of human trafficking, tax evasion, graft, money laundering, and misrepresentation, but fled to Indonesia after her dismissal in August. She was arrested and brought back to the Philippines in September.

Further investigations have shown that Guo is not the only government official linked to POGO.

For instance, a POGO hub on the 36-hectare Island Cove in Cavite was suspected to have ties to the city’s governor, Jonvic Remulla, and his family, who previously owned the land. Additionally, former presidential spokesperson Harry Roque's name has repeatedly appeared in evidence related to POGO activities. 

POGO Killings

However, sketchy transactions and scams are just the tip of the iceberg of POGO-related crimes. In the same month, authorities received reports of an alleged mass grave at another POGO hub linked to Guo.

In June, a raid on the Lucky South 99 site in Porac, Pampanga, revealed trafficked workers, prostitution dens, illegal drugs, and what appeared to be tools of torture. An incinerator was also discovered and is suspected to have been used in torture, though this has not yet been proven.

By September, the PAOCC and the Department of Justice (DOJ) were reportedly preparing to investigate witness accounts of the nearby mass grave where POGO workers were allegedly buried.

Aside from this, PAOCC investigated the deaths of nine foreign nationals possibly linked to POGO operations and found in different parts of Pampanga.

The Final Ban

By mid-2024, the evidence against POGOs was overwhelming. The Department of Finance revealed that the economic costs of POGOs—estimated at ₱265.74 billion annually—far outweighed their ₱166.49 billion contributions.

During his State of the Nation Address (SONA) in July, President Marcos Jr. declared his intent to shut down POGOs permanently. By November, Executive Order No. 74 made it official: all offshore gaming operations must cease by year-end.

Blurred Lines

On the other hand, Senator Risa Hontiveros expressed apprehension on the ambiguity of the EO, saying: “While I laud the aims of the Executive Order, at nagpapasalamat din para sa reintegration program para sa mga displaced workers, may mga bagay pa rin sa EO na hindi malinaw.” 

Under the EO, POGOs and Internet Gaming Licenses (IGL) including illegal offshore gaming operations, new license applications, and renewals are prohibited but it does not extend to the numerous Business Process Outsourcing (BPO) companies that provide services to POGOs and IGLs. These BPOs operate as separate entities and are not themselves POGO or IGL licensees.

Section 1(b) of the EO also states that the ban “exclude online games of chance conducted in PAGCOR-operated casinos, licensed casinos, or integrated resorts with junket agreements.”

”Ibig sabihin ba nito, puwede magpatakbo ng POGO sa mga casino gaya ng City of Dreams? Gaya ng Fontana? O kahit sa mga resorts na may mga casino sa loob?” Senator Hontiveros said in a statement.

The senator also noted the possible rebranding of POGOs.

“Dapat hindi na maulit pa ang mga ganitong modus, kabilang na ang pagsulpot ng iba’t ibang ‘rebranding’ ng POGO.”

Hannah Aliswag is a News Feature writer and Graphic Designer of 4079 Magazine. A senior BA Journalism student at PUP Manila who specializes in news writing. She is currently interning at ABS-CBN News Digital where she contributes stories on diverse topics.