We explore the ban on POGOs in the Philippines over alleged links to organised criminal activity amid a call by the country’s Senate President for the regulator to review the operations of PIGOs.
The Philippine government has cracked down on illegal POGOs in recent years, even shutting down some operations. However, some licensed operators still exist.
In July 2024, President Ferdinand Marcos Jr announced a ban on all Philippine offshore gaming operators, which was due to take effect in December 2024.
Philippine Offshore Gaming Operators (POGOs) are online casinos catering primarily to foreign players from China. These companies operate legally under licenses issued by the Philippine Amusement and Gaming Corporation (PAGCOR). Still, they are controversial due to concerns over money laundering, cyber fraud, human trafficking, kidnapping, and tax evasion.
PAGCOR Chairman and Chief Executive, Alejandro Tengco defended legitimate POGOs, stating that scam syndicates and alien hacking were more of a threat to national security.
He pointed out that POGOs licensed by the regulator contributed over $85 million to PAGCOR’s 2023 gross revenue.
In November 2024, President Marcos signed Executive Order 74, effectively banning all offshore gambling operations in the Philippines.
The order mandates an immediate cessation of all activities, which have long drawn public scrutiny over their links to crime, social issues and alleged exploitation.
The order directly targets licensed casino operators and illegal offshore casino companies. The administration cites concerns regarding national security, public order, and the protection of vulnerable populations as the primary drivers.
According to the Department of Finance (DOF), the risks and negative impacts of POGOs, including rising crime rates and social instability, outweighed the industry’s contribution to the economy.
Several government agencies, including the Philippine National Police (PNP), the Bureau of Immigration (NBI), and the Anti-Money Laundering Council, support the ban on POGOs.
The Executive Order also received widespread support in the country’s Senate, with lawmakers expressing relief that the President had taken decisive action.
Senators indicated that EO 74 was a firm foundation for proposed legislation, making the policy permanent. Bills such as Senate Bill 2752, the Anti-POGO Act and Senate Bill 1281, the Anti-Online Gambling Act, are currently under review. If passed, they would underpin the country’s legal framework against all forms of online gambling and reinforce EO 74.
To ensure a smooth exit for POGOs, PAGCOR and the Bureau of Internal Revenue have been mandated to expedite collecting any outstanding fees and taxes to close the books on the industry once regarded as lucrative but simply too controversial.
A PIGO (Philippine Inland Gaming Operator) is a gaming operator licensed by PAGCOR that allows existing land-based casinos, e-gaming, and sports betting operators to offer online gaming services to registered Filipino players within the country.
PIGOs have become increasingly popular in the Philippines as local players make the most of their access to these games of chance.
Philippines Senate President, Francis Escudero has called for a review of the PIGO sector to determine if these gambling operations, which are easily accessible to Filipinos, are worth continuing.
According to the Senator, PIGO operations have escaped the scrutiny afforded their offshore counterparts while offering the same online games to a predominantly local player base.
He argued that the issues raised against POGOs could be levelled at their inland counterparts, a cause for even greater concern as the local population was impacted. Escudero said:
“We should review this because the ill effects that we want to avoid are most likely present in Pigos, which affect only Filipinos and not foreigners.”
Escudero called on PAGCOR to provide an in-depth review of PIGOs to determine the industry’s benefits to the country and to provide the public with a clear view of the implications of playing games of chance.
According to PAGCOR, as of June 2024, there were 44 PIGO licensees, including those run by Bloomberry Resorts and Hotels, Travellers International Hotel Group and Thunderbird Pilipinas Hotels and Resorts offering a range of live dealer games, slots and virtual games to local customers.
The outcome of the PAGCOR review of PIGOs hinges on revenue collection. In 2024, the government-owned entity, which operates its own casinos and licenses private casino operators, reported record revenues of PHP 112 billion, a 41% increase over the previous year.
A negative regulator review of PIGOs could set in motion a repeat of the scenario that resulted in the eventual banning of POGOs.
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