Senator Francis Escudero, head of the Philippine Senate Committee on Finance, says Philippine Offshore Gaming Operations (POGOs) are too valuable to be totally banned. The industry has been marred by reports of criminal activity including human trafficking and money laundering, causing some lawmakers to call for a total shutdown.
“If we close them down, we may have to increase taxes because we need to cover the lost income from them,” he said, as reported by GGRAsia. “For this, I’d like to look at the big picture.
“Some are bad, but that doesn’t mean all are bad,” Escudero continued, adding that revenues for the Philippine Amusement and Gaming Corp. (PAGCOR) “increased by several hundred percent due to POGO.”
In June, the government reported revenues of US$80.1 million from POGOs during the first eight months of 2022. As their name indicates, POGOs serve patrons outside the country’s border.
Finance Secretary Benjamin Diokno is among those who support a total ban, saying crimes linked to POGOs are damaging to the country’s reputation.
Senator Sherwin Gatchalian has also demanded a swift end to POGOs, citing lack of benefit to the broader economy, instances of unpaid taxes and concerns about social harm from “criminal influences.”
The Association of Service Providers and POGOs protest that 23,000 Filipinos could lose their jobs if the businesses are outlawed.
Meanwhile, PAGCOR officials say all POGO licensees and service providers have until September 17 to reapply for licenses, part of the regulator’s attempt to root out unscrupulous operators.
Escudero said relicensing is a “good start,” and that PAGCOR should “coordinate with law enforcement agencies” to ensure the process is thorough.
As part of strengthened requirements, PAGCOR now mandates that offshore operators maintain authorized capital stock of at least PHP100 million (US$1.8 million), of which PHP25 million must be paid up. Previously, the minimum capital requirement was PHP15 million, with PHP3 million paid up. There is also a PHP100,000 license application fee. Approved licenses will be valid for two years.
