Philippines Cracks Down on Disputed Offshore Betting Enterprises
Philippine Government to Shutter Offshore Gaming Operators Amidst Illicit Activities
In a decisive move to combat illegal activities associated with Philippine Offshore Gaming Operators (POGOs), President Ferdinand "Bongbong" Marcos Jr. has ordered the Philippine Amusement and Gaming Corporation (PAGCOR) to close down these operations by the end of the year. The move forms part of a significant policy shift aimed at arresting the activities of POGOs linked to financial scams, human trafficking, and other criminal activities.
POGOs, initially licensed by the Philippine government to provide online gambling services, primarily catering to Chinese players due to gambling restrictions in mainland China, have been a disruptive presence in the Philippines for over a decade. Despite generating tax revenue and employment opportunities, their shadowy practices, including tax evasion, illegal employment, and a range of criminal activities, have overshadowed the benefits.
In his State of the Nation address, President Marcos Jr. highlighted the alarming reality surrounding POGOs, implicating them in financial scamming, money laundering, prostitution, human trafficking, kidnapping, torture, and murder. The grim details surrounding the industry have intensified calls for a crackdown on these illegal activities.
The Philippine Department of Finance (DOF) has supported this stance, estimating that POGO operations and related reputational risks outweigh their financial benefits, making a strong case for their dismantling. With over 400 suspect operations and the cancellation of licenses for 298 POGOs, the future of these operators in the Philippines looks uncertain.
As a part of this major policy shift, efforts are underway to assist displaced workers due to the closure of POGOs and to continuously crack down on illegal operations. The Presidential Anti-Organized Crime Commission (PAOCC) has pledged to actively pursue gaming operations that continue to flout the law.
The Philippines' decision to dismantle POGOs is a significant step towards addressing the myriad issues associated with the offshore gaming industry and protecting its citizens. While this move won't eliminate all problems instantly, it represents a substantial stride towards fostering a safer, more regulated environment for online gaming. As global attention focuses on the Philippines, its actions could pave the way for future strategies to tackle digital age challenges.
The closing of Philippine Offshore Gaming Operators (POGOs) has impacted the Philippine slot machine market, causing a decrease in business for suppliers and reduced high-roller activity in casinos. This is due to fewer Chinese tourists and the loss of VIP clients linked to POGO operations.
Legislative developments led by Senator Sherwin Gatchalian are underway to permanently ban POGOs, ensuring the industry remains abolished in its previous form. The Philippine gaming industry is evolving towards domestic and regulated digital offerings, with the Philippine Amusement and Gaming Corporation (PAGCOR) playing a central role in oversight and governance. Despite the challenges posed by the POGO ban, the industry has shown resilience, demonstrating record growth in gross gaming revenue (GGR) in Q1 2025.
- The decrease in business for Philippine slot machine market suppliers and reduced high-roller activity in casinos can be attributed to the impact of the closing of Philippine Offshore Gaming Operators (POGOs).
- In an effort to ensure the permanent abolition of POGOs, Senator Sherwin Gatchalian has initiated legislative developments, leading to the evolution of the Philippine gaming industry towards domestic and regulated digital offerings, with PAGCOR playing a central role in oversight and governance.
