By all indications, the end is near for the controversial Philippine offshore gaming operators (Pogos), the virtual casino companies once hailed for their supposed huge injection of funds into the local economy. However, after numerous dark incidents, these ubiquitous Pogos have been denounced for being a lightning rod for criminality and human trafficking.
After six months of intense debate, Senator Sherwin Gatchalian has finally convinced the majority of his colleagues in the Senate committee on ways and means to approve the committee report urging the expulsion of Pogos within three months. The 120-page report highlights the pervasive social problems that outweigh the Pogos’ overrated economic benefits.
The possibility of a permanent ban on Pogos has received support from various sectors, including economic managers who have noted the significant social costs that outweigh the meager tax collections of P8.88 billion last year. This figure falls far short of the projected annual tax revenue of P32 billion when the law imposing taxes on Pogos was passed in 2021.
The alarming social ills associated with Pogos are evident from the data provided by the Philippine National Police. From January 1, 2017 to June 30, 2023, a total of 103 Pogo-related crimes were reported, affecting around 4,355 individuals. These crimes include kidnapping, homicide, theft, robbery-extortion, cryptocurrency fraud, illegal possession of firearms, human trafficking, grave coercion, money laundering, and even prostitution. These social costs are simply too high, according to Socioeconomic Planning Secretary Arsenio Balisacan. He emphasizes the need for “legitimate investments… that will produce goods and services” instead of the negative impacts caused by Pogos. Finance Secretary Benjamin Diokno also stresses the reputational risk posed by Pogos, particularly with regards to alleged money laundering, which draws closer scrutiny from global financial watchdogs. “I have no recommendation on phasing out, I just want them to go,” Diokno asserts.
Unfortunately, Gatchalian faces the risk of losing the necessary support to bring the committee report to the plenary for further action. The sticking point lies in the recommended three-month transition period before the ban on Pogos takes effect. Senator Ronald dela Rosa suggests a gradual phaseout to allow the government to collect taxes from legitimate Pogos and protect the investments made by Filipino businessmen. Dela Rosa proposes a one to two-year adjustment period for legal Pogos without anomalies, as abruptly ending Pogos in three months could send a negative signal to foreign investors.
Senate Deputy Majority Leader Joseph Victor “JV” Ejercito shares similar concerns, emphasizing the need to give the Pogo sector at least two years to explore other business opportunities and find alternative employment for their workers. He believes that abruptly ending Pogos within three months goes against stable rules and policies and should be approached with better preparation.
There is no doubt that Pogos pose a threat to peace and social order in the Philippines and must be banned, regardless of the revenue earned or their impact on the real estate industry. The failure of the Philippine Amusement and Gaming Corp (Pagcor) to fully collect taxes only strengthens the argument for banning Pogos, especially since the Chinese government has officially opposed them.
However, before the final shutdown of Pogos, the government must find alternative employment for Filipinos working in these Pogo hubs. According to the Association of Service Providers and Pogos, the abrupt closure of the Pogo industry would result in the loss of over 23,000 jobs held by Filipinos. Addressing this issue is of paramount concern and should be prioritized.
With the COVID-19 pandemic and the crackdown on the industry in both the Philippines and China, the number of legally operating Pogos has significantly decreased. There are now only 32 active offshore gaming licenses in the Philippines, compared to 281 before the health crisis in 2020. The smaller number of Pogos operating in the country makes it easier to regulate the industry and monitor its activities. Implementing a longer but well-planned timetable would allow for an orderly and permanent exit of these controversial Pogos.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
