The Philippine Amusement and Gaming Corp. (PAGCOR) says the impact of Covid-19 led to its decision to cancel the licenses of 22 Philippine Offshore Gaming Operators (POGOs).
The list of canceled POGOs was published last month by the Philippines’ Anti-Money Laundering Council (AMLC). Six of the 22 were not registered with the AMLC as required by law.
According to Inside Asian Gaming, the state-run gaming regulator said Covid precipitated a decline in the POGO industry. The industry shut down for months in 2020, causing POGOs’ foreign employees to leave the country “in fear of discrimination when availing of health services,” PAGCOR stated. That was followed by a ban on the entry of POGO foreign workers into the country, and limitations on the operational capacities of service providers pursuant to the imposed quarantine classifications.
The number of POGOs dropped from a high of 63 in 2019 to just 26 operational POGOs as of April 26.
Asked about the prospects of recovery, the regulator told IAG, “After two years since the first imposition of the lockdown and shutdown of operations, the POGO industry has not yet fully recovered.
“There is a possibility for new expansion but there is a need to create a more conducive environment by providing more practicable and adaptable treatment of our POGO licensees in this time of crisis and to give them the opportunity to revitalize operations as well as attract new operators.”
Revenue from POGO licenses fell from PHP5.28 billion (US$101 million) in 2020 to PHP3.47 billion (US$67 million) in 2021. PAGCOR has projected a further decline to PHP 1.67 billion (US$32 million) in 2022.
