Taxes collected from Philippine Offshore Gaming Operators (POGOs) amounted to just PHP2.05 billion (US$40.3 million) from January through July, a big decline from the previous two years.
According to the Philippine Inquirer, the decline was attributed to multiple reasons, including crackdowns on iGaming in Mainland China, the impact of the Covid-19 pandemic and the general flight of POGOs due to a new tax and stricter regulations. In September, President Rodrigo Duterte signed legislation that imposes a 5 percent franchise tax on the operations’ gross gambling revenues. Latest figures from the Philippine Amusement and Gaming Corp. showed just 36 POGO licensees as of August 6, down from more than 60 before Covid, with 133 accredited service providers instead of 218
Finance Secretary Carlos G. Dominguez defended increased taxation, and said the Chinese crackdown was more to blame for the exodus of POGOs. “I mentioned to people since 2018, China is sooner or later going to crack down on this,” he said. “Once the Chinese started cracking down on that, of course, the business will go down here.”
Inside Asian Gaming reported that two more POGO licensees could be on the outs. MG Universal Link Ltd. and Inner Strong Ltd. could have their licenses revoked after the Philippines’ Anti-Money Laundering Council said they failed or refused to cooperate with compliance checks.
