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The Philippines is purging its economy of illegal gambling and criminal syndicates.
Philippine President Ferdinand Marcos has announced the complete closure of offshore gambling operators by the end of the year. POGO companies were engaged in fraud and other crimes under the guise of legitimate companies.
POGO is a company licensed by the Philippine government to provide gambling services to people outside the country, mainly in mainland China, where gambling is prohibited. The purpose of creating such companies is to attract foreign investment and increase tax revenues to the country's budget.
Over the past 10 years, POGO has become a significant part of the Philippine economy, providing income from taxes, fees, and creating jobs for both Filipinos and foreign citizens, mostly from China. On the other hand, many conflicts have arisen around POGO related to tax evasion, illegal employment of foreign workers, and suspected involvement in criminal activities.
Disguising themselves as legitimate companies, POGO often engaged in financial scams, money laundering, prostitution, human trafficking, kidnappings, torture and even murder, the president noted. In March, police rescued 875 workers, including Filipinos, Chinese, Malaysians, Vietnamese, Taiwanese, Indonesians and Rwandans, from a crime syndicate in Tarlac Province, Philippines. During the raid, evidence of financial fraud was found, as well as weapons and mobile phones used for questionable transactions.
Pressure from society and politicians was mounting as the POGO industry created economic and regulatory problems, as well as serving as a cover for fraudulent schemes. China has long called on the Philippines to take action against POGO, claiming that opening a casino to Chinese citizens is a crime under Chinese law. In addition, Beijing is concerned about online scams targeting the Chinese, and has pressed countries that turn a blind eye to the activities of such groups.
The Philippine Department of Finance estimates that POGO's net operating costs are $1.7 billion annually, with tax and gaming revenues reaching $2.8 billion annually. The country's Finance Ministry estimates that the industry costs the Philippines $197.5 billion annually, taking into account reputational risks and the impact on foreign direct investment.
At the moment, 42 POGO's are licensed directly from PAGCOR, and perhaps more than 400 are operating illegally. Previously, 298 POGO users had their licenses revoked. Legal POGO provided jobs for about 40,000 Filipinos and 23,000 foreigners at the end of 2023.
Philippine President Marcos assured that the Ministry of Labor and Employment will help find new jobs for Filipino workers who lost their jobs as a result of the closure of POGO. Marcos acknowledged that banning POGO would solve many, but not all, of the problems associated with the industry.
The Organized Crime Commission (PAOCC) has promised to tighten measures against illegal gambling operations. However, even a complete ban does not guarantee the disappearance of such companies, as a significant number of POGO have already gone underground.
Source
Philippine President Ferdinand Marcos has announced the complete closure of offshore gambling operators by the end of the year. POGO companies were engaged in fraud and other crimes under the guise of legitimate companies.
POGO is a company licensed by the Philippine government to provide gambling services to people outside the country, mainly in mainland China, where gambling is prohibited. The purpose of creating such companies is to attract foreign investment and increase tax revenues to the country's budget.
Over the past 10 years, POGO has become a significant part of the Philippine economy, providing income from taxes, fees, and creating jobs for both Filipinos and foreign citizens, mostly from China. On the other hand, many conflicts have arisen around POGO related to tax evasion, illegal employment of foreign workers, and suspected involvement in criminal activities.
Disguising themselves as legitimate companies, POGO often engaged in financial scams, money laundering, prostitution, human trafficking, kidnappings, torture and even murder, the president noted. In March, police rescued 875 workers, including Filipinos, Chinese, Malaysians, Vietnamese, Taiwanese, Indonesians and Rwandans, from a crime syndicate in Tarlac Province, Philippines. During the raid, evidence of financial fraud was found, as well as weapons and mobile phones used for questionable transactions.
Pressure from society and politicians was mounting as the POGO industry created economic and regulatory problems, as well as serving as a cover for fraudulent schemes. China has long called on the Philippines to take action against POGO, claiming that opening a casino to Chinese citizens is a crime under Chinese law. In addition, Beijing is concerned about online scams targeting the Chinese, and has pressed countries that turn a blind eye to the activities of such groups.
The Philippine Department of Finance estimates that POGO's net operating costs are $1.7 billion annually, with tax and gaming revenues reaching $2.8 billion annually. The country's Finance Ministry estimates that the industry costs the Philippines $197.5 billion annually, taking into account reputational risks and the impact on foreign direct investment.
At the moment, 42 POGO's are licensed directly from PAGCOR, and perhaps more than 400 are operating illegally. Previously, 298 POGO users had their licenses revoked. Legal POGO provided jobs for about 40,000 Filipinos and 23,000 foreigners at the end of 2023.
Philippine President Marcos assured that the Ministry of Labor and Employment will help find new jobs for Filipino workers who lost their jobs as a result of the closure of POGO. Marcos acknowledged that banning POGO would solve many, but not all, of the problems associated with the industry.
The Organized Crime Commission (PAOCC) has promised to tighten measures against illegal gambling operations. However, even a complete ban does not guarantee the disappearance of such companies, as a significant number of POGO have already gone underground.
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