The Philippine government has launched an extensive crackdown on illegal offshore gambling operators, many of which are run by Chinese companies, as calls to ban these operations escalate due to their alleged connections with criminal syndicates.
Alejandro Tengco, chairman of the Philippine Amusement and Gaming Corporation (PAGCOR), revealed on Thursday that approximately 250 to 300 offshore gambling firms are operating without licenses. This figure starkly contrasts with the 46 legitimate gaming operators officially recognized in the country.
“Together with the police, we search for these illegal operators, conduct raids, and shut them down,” Tengco stated in an interview with Reuters. This coordinated effort underscores the government’s determination to eliminate unlawful activities that have proliferated within the industry.
The online gaming sector in the Philippines, known locally as Philippine Offshore Gaming Operators (POGOs), has experienced significant growth since its inception in 2016. The industry flourished by targeting customers in China, where gambling is strictly prohibited, taking advantage of the Philippines’ more lenient gaming laws.
At its zenith, the POGO industry boasted around 300 operators, employing over 300,000 Chinese workers. However, the COVID-19 pandemic and the imposition of stricter tax regulations have forced many operators to either shut down or go underground, according to Tengco.
The recent crackdown was spurred by alarming reports of POGO-related crimes, including human trafficking, torture, kidnapping, and various fraudulent schemes such as credit card fraud, crypto investment scams, and “love scams”—where criminals create fake online identities to extort money from unsuspecting victims.
In a high-profile raid in March, law enforcement agencies targeted a POGO facility in Pampanga province, rescuing more than 800 workers, including both Filipino and Chinese nationals. This incident highlighted the severe human rights abuses associated with illegal POGO operations.
Security officials have also raised alarms over the national security threats posed by these illicit operations. Defence Secretary Gilberto Teodoro emphasized the urgent need to curb these criminal activities, stating, “The concern is that we should stop these syndicated criminal activities operating out of our base, which weaken our financial standing, our country ratings, and corrupt our society.”
The National Security Council echoed these sentiments, underscoring that such illegal activities cannot be tolerated.
PAGCOR’s Tengco noted that the gaming regulator would abide by the government’s ultimate decision regarding the future of POGOs, which might include an outright ban on the industry. This decision comes as part of broader efforts to safeguard national security and public welfare.
Despite the ongoing crackdown, the government is poised to generate 24.5 billion pesos (approximately $436 million) this year from POGO fees and taxes, with half of these revenues coming from licensed Chinese firms. However, this financial benefit is weighed against the considerable social and security costs linked to illegal gambling operations.
As the Philippine government intensifies its efforts to dismantle illegal POGO networks, the fate of the industry hangs in the balance, reflecting a complex interplay between economic gains and the imperative to uphold law and order.
