PAGCOR Mum on POGO Shutdown, Vows ‘Integrity’

As Philippine senators demand a swift shutdown of online gaming operations, the country’s gaming regulator has reiterated its “commitment to uphold the integrity” of the gaming industry, including online ops.

PAGCOR Mum on POGO Shutdown, Vows ‘Integrity’

As the head of the Philippine Senate’s Ways and Means Committee pushes to ban Philippine Offshore Gaming Operations (POGOs), the country’s gaming regulator insists it will ensure integrity in all aspects of the industry.

According to Asia Gaming Brief, Senator Sherwin Gatchalian wants to shut down the controversial operations in 90 days, saying it is tainted by a criminal element that has engaged in kidnapping, human trafficking and assault.
Gatchalian said POGO operators are “no longer businessmen, they are foreign criminals in our country” and alleges that POGO-linked corruption has infiltrated the government, specifically the Bureau of Immigration and Bureau of Internal Revenue.

“The data and evidence on hand all point to the same conclusion: enough is enough,” Gatchalian said. “It is time to ban offshore gaming operations in the Philippines, once and for all.”

In addition, a new report on the sector contends that POGOs aren’t making “significant economic contributions” to the economy and also are bringing “growing criminal influence” to the Philippines.

In a March 30 news release, the Philippine Amusement and Gaming Corp (PAGCOR) did not specifically address the demand for a shutdown, but only said it “reassures the public that to maintain the integrity of regulated gaming in the country, the state-run firm will not hesitate to impose appropriate sanctions or penalties to erring licensees or service providers.”

PAGCOR added, “We will ensure that all revenues from regulated gaming will continue to support the government’s nation-building efforts and uplift the lives of Filipinos.”

Law enforcement data show that 40 POGO-related kidnapping incidents were recorded in 2022. In March, PAGCOR was forced to terminate its contract with a third-party auditor responsible for auditing POGOs when the service provider was found “in default of its obligations,” having “committed unlawful acts.” Global ComRCI allegedly provided misleading documentation to secure the contract, including a falsified certification from Soleil Chartered Bank’s (SCB) New York branch.

Speaking to Asia Gaming Brief last month, PAGCOR Chairman and CEO Alejandro H. Tengco said the regulator continues to support legal and law-abiding operations.

“For as long as they continue to employ Filipinos, for as long as they continue to spend—whether in restaurants, in the retail industry, in the real estate industry—I am of the belief that I will be supporting the POGO industry, the overseas gaming licensees,” Tengco told AGB on the sidelines of the ASEAN Gaming Summit in Manila.