Philippine Senator Sherwin Gatchalian has filed a bill that would ban Philippine offshore gaming operations, familiarly known as POGOs, due to concerns about criminal activity including online scams and human trafficking.
According to the Philippine Star, Gatchalian pointed to recent raids on POGO hubs in the Clark Freeport Zone, Las Piñas, Pasay City and Bamban, Tarlac.
In the Pasay City case, uncovered in October 2023, a POGO firm was supposedly involved in prostitution and torture. In the Bamban case, 800 employees reportedly were compelled to participate in online love scams and crypto scams. Mayor Alice Guo has been accused of involvement in the Bamban operation.
The chairman of the Senate Ways and Means Committee also noted a 2022 cost-benefit analysis by the Department of Finance showing that, while POGO operations generate economic benefits worth PHP133.7 billion to PHP144.5 billion annually, they have warded off potential investment and exacted a great cost in law enforcement and immigration processing.
“This means that POGO operations have brought more harm than good, as the economic costs greatly outweigh the benefits derived from such operations,” Gatchalian said. “Beyond the financial impact, the rise in human trafficking and online scams linked to POGOs is a moral failing we must address.
Senate Bill No. 2689, filed May 21, would repeal an amendment to the tax code made law in 2021 by then-president Rodrigo Duterte. That legislation permitted the taxation of offshore gaming operations.
Last year, the Philippine Amusement and Gaming Corp. (PAGCOR) rebranded POGOs as internet gaming licensees (IGLs).
