Philippines Shuts Down POGOs, Citing Security and Crime Risks
In a long-expected move, Philipines President Marcos Jr announced Executive Order 74, imposing an immediate ban on all POGOs and other internet and offshore gaming in the island nation. Those that have been operating with state-issued licenses will need to wrap up operations before the New Year completely.
Marcos Jr cracks down hard on Manilla POGOs © Joe Barbour, Unsplash
Marcos Jr, the Philippine President, had widely telegraphed his intent to remove all offshore gambling operations from the Philippines. Back in July, in his State of the Union address, he had stated that all licensees of the Philippines Amusement and Gaming Corporation should expect to have their licenses pulled before year end. These Philippine offshore gaming operators, or POGOs, were first licensed by President Duerte in 2016.
A popular movement emerged in 2022 to curb both licensed offshore and internet gambling companies. It also targeted numerous unlicensed casinos, offering Chinese and other Asian nationals the opportunity to gamble online through computer and live dealer broadcast casino games.
The State has the paramount duty to safeguard national security, maintain public order, uphold the rule of law, protect the safety of its citizens, and ensure the integrity of the social fabric of the nation– Ferdinand Marcos Jr, Philippine President, State Press Release
At its height, licensed POGOs numbered more than 300, but illegal gambling operations were estimated to be well over 1000. Many only hired Chinese workers, with one estimate as high as 300,000 Chinese employed at one time. Many of these were illegal immigrants who lived in terrible conditions, and allegations of human trafficking, slavery, and even murder have been leveled at both legal and illegal internet casino operators.
While the licensed POGOs have been estimated to account for more than $3 billion annually in economic benefits, many Filipinos questioned whether that was worth the increased crime, sense of lawlessness, and the risk to the booming tourism market that hosting these companies seemed to entail.
Public frustration culminated with the raid on the Lucky South 99 complex in June 2024, which led to the deportation of 150 Chinese nationals, the discovery of torture videos, and concerns over a potential mass grave at the site. The raid also implicated Harry Roque, a former spokesperson for President Duterte.
Some government officials argued that Chinese involvement in legal and illegal internet gambling posed a national security threat. One representative claimed that illegal casinos around Manila’s city center acted as a perimeter for espionage.
This, coupled with polls showing that 86% of the country believed that POGOs should be outlawed, meant that President Maros could seize the moment in the State of the Union address. On July 22nd, he announced his intention to remove licensed gaming operators and continue his crackdown on unlicensed ones.
What Executive Order 74 Means for the Future of PH Offshore Casinos
On November 5th, President Marcos Jr. issued sweeping legislation that immediately bans offshore and internet gaming across the Philippines. The government deemed that the risks to national security and the continuing criminal enterprises outweighed any economic benefit, citing evidence of widespread money laundering and reputational damage.
The order clearly states that International Gaming Licensees (IGL) and Philippine Offshore Gaming Operators (POGO) will close or be closed by December 31st. Related auxiliary services are also banned, and their licenses will be canceled.
The government has also established Technical Working Groups to assist at least 20,000 displaced Filipino workers in finding new employment, though the fate of undocumented Chinese workers remains uncertain, with many facing deportation.
The President also authorized both regional governments and the Presidential Anti-Organised Crime Commission (PAOCC) to continue their attempts to dismantle and disrupt the many hundreds of illegal offshore and internet gambling dens still scattered across the country.
It remains to be seen whether Executive Order 74 will fully eliminate the crime and social issues spawned by nearly a decade of loosely regulated gaming. One thing is clear: the era of legal Philippine Offshore Gaming Operators has come to an end.
