The Philippine gaming industry is set for a significant shift as the Philippine Amusement and Gaming Corporation (PAGCOR) prepares to initiate the closure of all Philippine Offshore Gaming Operators (POGOs). This move comes after President Ferdinand Marcos Jr.’s announcement earlier this year to ban Internet Gaming Licensees (IGLs), commonly referred to as POGOs, by 1 January 2025. Once an executive order is signed later this month, the formal enforcement of this decision is expected to start in October.
President Marcos’ Plan to Ban Offshore Gaming Operators
During his State of the Nation Address in July, President Marcos made his intentions clear regarding the future of offshore gaming operators in the Philippines. He pledged to terminate all POGO operations by the beginning of 2025, citing concerns over their presence in the country. While this ban has not yet been officially enacted, PAGCOR is preparing to act swiftly once the executive order is signed in September.
At a recent Senate hearing held by the Committee on Games and Amusement, PAGCOR Chairman and CEO Alejandro Tengco revealed that PAGCOR will commence its actions against existing Internet Gaming Licensees in October. The expected outcome is that many of the remaining operators will shut down well ahead of the 31 December 2024 deadline set by the government.
Industry Reduction Already Underway
Tengco highlighted that some operators have already voluntarily ceased operations. Currently, the number of licensed operators has dropped from 46 to 41. The closure of these five operators resulted from multiple violations discovered during regulatory checks. According to Tengco, the government is committed to ensuring that the remaining operators follow suit as the end of the year approaches.
He also confirmed that the Bureau of Immigration will actively cancel the working visas of foreign employees associated with POGOs, starting 59 days before the final closure date. “After that, there will be no more visas,” Tengco stated, emphasizing that the government is on track to phase out the entire industry.
Gradual Cancellation of Visas
In addition to these measures, the shutdown process will involve the phased cancellation of work visas for employees of POGOs. Jessa Mariz Fernandez, the Assistant Vice President of PAGCOR's Offshore Gaming Licensing Department, provided more insight into the visa cancellation plan during the same Senate hearing. She explained that the process will occur in stages, beginning with a voluntary downgrading of visas by employees, followed by full cancellation at a later date.
“The removal of some parts of the operations of internet gaming licensees can be done earlier,” Fernandez said. “Initially, there will be a voluntary downgrading of visas, and then, by a certain date, they will cancel all visas.” This structured approach aims to ensure the gradual decrease of POGO operations leading up to the 31 December 2024 deadline.
POGOs have been a prominent part of the Philippine gaming industry for several years, drawing a large number of foreign workers, particularly from China. However, their presence has been marred by controversy, including allegations of tax evasion, illegal employment, and links to criminal activities. This has led to increased scrutiny from the Philippine government, culminating in President Marcos’ decision to shut them down entirely.
The winding down of POGOs marks the end of an era for the industry in the Philippines. Over the past few years, these operators have been a key revenue source for PAGCOR, contributing significantly to the country's gaming income. However, concerns about their operations and the negative social impact have outweighed the economic benefits, prompting the government to take decisive action.
What’s Next for the Philippine Gaming Industry?
As PAGCOR moves forward with its plan to wind down POGO operations, there are still questions about the future of the Philippine gaming industry. While the country remains a hub for land-based casinos and other forms of regulated gaming, the closure of offshore operators represents a major shift. PAGCOR’s focus is likely to shift towards enhancing regulatory compliance and developing other gaming sectors that contribute to the country’s economic growth without the controversies associated with POGOs.
The Philippine government’s commitment to shutting down all offshore gaming operations is clear. With PAGCOR leading the way, it is expected that the remaining operators will be closed by the end of 2024, bringing an official end to the POGO era in the Philippines.
Source:
''Executive Order from Philippine President Marcos officially banning POGOs to be signed this month'', asgam.com, September 05, 2024.
