Philippine agencies push for total ban on POGOs amid economic concerns?

Jenny Ortiz July 18, 2024

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Philippine agencies push for total ban on POGOs amid economic concerns?

Several government agencies in the Philippines advocated for a complete ban on Philippine Offshore Gaming Operators (POGOs) during a Senate Committee hearing on Tuesday. The Department of Finance (DOF) highlighted that the country loses over PHP99 billion (€1.5 billion) annually due to POGO operations, citing foregone investments and tourism revenues impacted by the negative perception of these activities. 

The National Economic and Development Authority (NEDA) echoed these concerns, emphasising potential economic losses amounting to PHP144 billion (€2.26 billion) if POGOs continue operating, with implications on international relations affecting tourism. 

Moreover, the National Security Council (NSC) also raised alarms, discussing potential threats to national security posed by POGOs and their operations, and urging legislative measures to outlaw illegal POGO activities.  

Online gaming regulation?

Senator Sherwin Gatchalian stressed the need for stricter regulation of not only POGOs but also online gaming in general, citing concerns over ease of access and the prevalence of unregulated sites. In a post in X (former Twitter), Gatchalian thanked the government agencies for their support in the call to ban POGOs.?

Financial implications?

Meanwhile, the Philippine Amusement and Gaming Corporation (PAGCOR) reported monitoring thousands of illegal online gaming sites and emphasised potential revenue losses of PHP35 billion to PHP40 billion (€549.6 million to €628.2 million) if online gaming were banned outright. PAGCOR Chairman and CEO Alejandro Tengco underscored the importance of taxation and regulation to ensure funds benefit the nation. 

Despite calls for a ban, Tengco advocated for regulation over prohibition, arguing that proper oversight could prevent revenue losses and redirect funds to national development projects. 

According to PAGCOR’s recent report, online gaming or the E-Games sector emerged as a standout performer for the Philippine gaming industry, generating PHP20.66 billion (€323.9 million) and accounting for nearly half, 45.53 percent, of the agency’s gaming revenues in the first half of 2024. 

Future policy directions?

The debate continues as stakeholders weigh economic benefits against social costs and national security risks associated with POGOs and online gaming. The Philippines’ Senate Committee continues to deliberate on legislative measures amidst differing viewpoints from government agencies and industry stakeholders. This comprehensive approach aims to balance economic interests with regulatory and security concerns in shaping future policies regarding POGOs and online gaming in the Philippines.?

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