It’s official: Marcos orders shutdown of Pogos

At least a hundred foreign nationals were rescued during a raid on Saturday, August 31, at hotel in Brgy. Agus, Lapu-Lapu City, Cebu that was identified as a Pogo hub. | CDN Photo/ Emmariel Ares

President Ferdinand Marcos Jr. has officially banned Philippine offshore gaming operators (Pogos), three months after announcing the plan in his July 22 State of the Nation Address.

Executive Order No. 74, issued on Nov. 5, cites national security and public order as key reasons for shutting down Pogos, which flourished under the previous administration but have since been linked to organized crime.

Recent congressional hearings on Pogos, prompted by raids on sprawling complexes that employed mostly foreign nationals, have heard testimonials about alleged killings, tortures, human trafficking, and cyber scams, and eventually led to the filing of criminal cases.

According to the EO, Pogos—including “internet gaming licensees” (IGLs) and other offshore gaming-related operations—are to wind up their affairs and cease operations in the country by Dec. 31, 2024.

“The State has the paramount duty to safeguard national security, maintain public order, uphold the rule of law, protect the safety of its citizens, and ensure the integrity of the social fabric of the nation,” it said.

Cons outweigh pros

It cited a study by the Department of Finance which noted that the increased crime rate, social instability, and incidents of exploitation tied to Pogos significantly outweigh their economic benefits.

The Anti-Money Laundering Council also reported how Pogos had become susceptible to money laundering, fraud and other illicit financial activities, thus posing threats to the integrity of the national financial system, the order noted.

“The high reputational risks associated with Pogo/IGL operations deter foreign investment and tourism, undermining the efforts of the national government in promoting the country as a safe and sustainable investment and tourism destination,” the order said.

The directive covers Pogos, IGLs and other offshore gaming operators that lack the necessary license, permit, or authorizations that are covered by the ongoing crackdown on illegal gambling.

2 groups formed

Applications for new licensees, permits, or authorizations for Pogos and IGLs as well as renewals will no longer be allowed, it said.

EO 74 also created two technical working groups (TWG) to “develop and implement a comprehensive strategy” to enforce the ban.

The TWG on employment recovery and reintegration will address the ban’s impact on Filipinos who will lose their jobs in Pogos and other sectors servicing them.

The directive also provides for assistance and safety nets for these workers, such as upskilling and reskilling programs, to help them find new jobs.

The TWG will be chaired by a representative from the Philippine Amusement and Gaming Corp. (Pagcor), while a representative from the Department of Labor and Employment will serve as vice chair.

Sustained crackdown

The second technical working group will intensify the crackdown on the now-outlawed companies and monitor the implementation of the ban. It will be chaired by a representative from the Presidential Anti-Organized Crime Commission, with the vice chair coming from the Department of Justice.

The Department of Human Settlements and Urban Development will help the second TWG in securing the cooperation of homeowners’ associations in its monitoring of subdivisions, condominiums, etc.

The Department of Tourism will also check on tourism establishments and facilities if they are being used as Pogo fronts.

READ: Bad for relations: China presses PH to ban Pogos

Pagcor and the Bureau of Internal Revenue are ordered to expedite the collection of applicable fees and taxes related to the offshore gaming industry.

Mr. Marcos also urged local governments to support the EO’s enforcement, by reporting any business activity defying the ban.

Speaker hails ‘big step’

At the House of Representatives, Speaker Martin Romualdez lauded EO 74 as a decisive act that tackled the “evils” associated with Pogos.

“This ban is a big step in protecting our communities and bringing order back … The House stands with the President in his push to end the evils and illegal activities tied to offshore gaming, which have put our public safety, national security, and economy at risk,” Romualdez said in a statement.

He cited the findings of the House quad committee investigating crimes associated with Pogos which showed that these” present serious and far-reaching risks to our nation.”

“The House is not only supporting the executive order but also advancing legislative solutions to strengthen enforcement efforts and protect our communities. Our commitment to upholding the rule of law and ensuring national security is unwavering,” Romualdez said.

He cited two bills that were recently filed as a result of the House quad panel’s inquiry into Pogos.

House Bill No. 10987 formalizes the Pogo ban for national security and crime prevention, while HB 11043 authorizes the government to seize land or property illegally acquired by foreigners to run Pogos.