Pogo phaseout in full swing; only 17 remain

The number of offshore gambling firms that are still operating in the country has gone down to 17, with the gaming regulator declaring that all licenses in the controversial industry will be cancelled by the end of December.

At a forum organized by the Stratbase ADR Institute on Tuesday, Alejandro Tengco, chair and CEO of Philippine Amusement and Gaming Corp. (Pagcor), said that even before he assumed office last August, hundreds of licenses of Philippine offshore gaming operators (Pogos) had been put on “probationary status” for being involved in scams.



READ: Post-Pogo office space vacancy rate seen staying at 18%

These permits were later deemed illegal, Tengco said, adding that the remaining Pogos would be shut down by the end of the year. From a peak of 298 licensed Pogos in 2019, the Pagcor chief said the number had significantly decreased to 48 in early 2024.

“By Jan. 1, 2025, all these operators that will still continue to operate— either elsewhere or in the different provinces—they’re all deemed illegal already,” he said.

“I can declare that by the end of December, all of them will have all their licenses cancelled,” he added.

At his State of the Nation Address in July, President Ferdinand Marcos Jr. ordered gaming regulators to shut down Pogos, which had flourished during the term of his predecessor Rodrigo Duterte.

The presidential order was the final nail in the coffin for Pogos after the pandemic and tighter tax rules forced many to relocate at the height of lockdowns. The move heeded loud calls from various sectors to ban the industry that had been linked to various crimes like money laundering and human trafficking.

In a formal directive dated Nov. 5, Executive Order (EO) No. 74 officially banned Pogo companies and stopped all applications or renewal of licenses, permits and authorizations, citing national security and public order as the primary concerns.

The EO also ordered the creation of a Technical Working Group (TWG) on Anti-illegal Offshore Gaming Operations to further intensify the crackdown, as well as a TWG for employment recovery and reintegration.

As it is, the departure of Pogos left a hole in the country’s volatile property market. Colliers Philippines earlier said the crackdown on offshore gambling firms—which mostly employed Chinese nationals catering to punters in mainland China—would affect certain areas in Metro Manila, particularly the sprawling Bay Area entertainment district.

While the company estimated the Pogo exodus to result in a 22.2-percent office vacancy by the end of the year, Colliers said vacancy rates may recover to 19 percent by 2025. By 2026, this may further ease to 18 percent.

For Pagcor’s Tengco, the country’s Pogo problem is not just a local issue.

“While Pogos were initially seen as a potential source of economic growth, they have instead led to a host of problems far beyond financial concerns,” he said.

“The links between Pogos and these illicit activities are becoming increasingly clear. These operations are not just a threat to our economy—they are a direct threat to the peace and order of our nation, and our national security,” he added. INQ

 

(2024/12/11-07:32)