MANILA – Philippine President Ferdinand Marcos Jr has banned offshore casinos operating in the Philippines, condemning the controversial online industry for its “grave abuse” of the country’s laws.
Mr Marcos, in his State of the Nation address on July 22, gave the national gaming regulator until the end of 2024 to shut down the Philippine offshore gaming operators (Pogos), which cater to overseas gamblers, including Chinese nationals and have been linked to criminal activities.
“The grave abuse and disrespect to our system of laws must stop… Effective today, all Pogos are banned,” said Mr Marcos, earning a standing ovation and resounding cheers from lawmakers and guests at the Batasang Pambansa complex in the capital Manila.
“Disguising as legitimate entities, their operations have ventured into illicit areas furthest from gaming such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder,” he added.
Pogos, primarily run by Chinese nationals, started flourishing in 2016 during former president Rodrigo Duterte’s term and have been the subject of multiple congressional hearings under the current Marcos administration.
The hearings include the Philippine Senate’s investigation on Ms Alice Guo, the now-suspended mayor of a small Philippine town who was allegedly behind an illegal scam hub fronting as a Pogo.
The authorities also say some Pogos have lured foreign workers, including Chinese nationals, with promises of legal jobs in the Philippines, only to trick them into working for the scam hubs later on.
The Chinese government has long been urging the Philippines to stop Pogos because of these illegal activities, even as tensions between both nations soar over territorial claims in the South China Sea.
Shutting down Pogos by the end of 2024 may be easier said than done, said political science assistant professor Jean Encinas Franco from the University of the Philippines.
She cited a recent study by the Philippine Institute for Development Studies think-tank that said the country could lose between three billion pesos (S$69 million) up to 14 billion pesos in revenue should Pogos be banned.
“That’s something that the Philippine government has to reckon with,” Professor Encinas said, adding that the country’s law enforcement agencies should also be prepared to react should these gaming operators find ways to still operate despite the ban.
About 25,000 Filipinos and nearly 23,000 foreigners were employed by the Pogos industry at the end of 2023, government data shows.
In his speech, Mr Marcos said he would direct his economic managers and the Labour Ministry to ensure Filipino workers in the industry would be able to find alternative jobs after the shutdown.