MANILA (UPDATE) — President Ferdinand Marcos, Jr. "is closely monitoring" Philippine Offshore Gaming Operators (POGOs), Malacañang said on Wednesday, as the industry faced calls to be banned after reports of kidnapping, prostitution and murder.

"The President is closely monitoring this and as far as the President is concerned ang PNP (Philippine National Police) po ang in charge dito sa usapin na ito," said Office of the Press Secretary officer-in-charge Cheloy Garafil.

(As far as the President is concerned, the PNP is in charge in this issue.)

Justice Secretary Crispin Remulla recently ordered police to go after 175 operators whose licenses had been revoked but continued to operate illegally.

The country this month will start deporting the estimated 40,000 Chinese workers employed by those businesses, Department of Justice spokesman Dominic Clavano said, after reports of POGOs involved in "murder, kidnapping and prostitution".

Executive Secretary Lucas Bersamin on Wednesday also confirmed that the Palace has started discussing the POGO issue. He made the disclosure to Sen. Sonny Angara during a Senate finance committee hearing on the Office of the President's proposed P8.9-billion budget for 2023.

“The Senate is conducting hearings, and we want to know where the Executive stands,” Angara told Bersamin.

Bersamin initially said, “We have not yet decided on that Mr. Chairman."

Asked if Malacañang is already discussing the matter, Bersamin later replied in the affirmative.

“Pinag-uusapan po (it is being discussed). But because your investigation, your proceedings are ongoing, out of respect for your findings, we cannot second-guess,” Bersamin said.

“Maybe we will go in tandem with you, once you come up with your findings. But the feeling is, there may be, well, we are appreciating the problem the way you appreciate it,” he added.

The Senate Ways and Means committee is set to hold its final hearing on the proposed total ban of POGOs. Panel chair Sen. Sherwin Gatchalian said he would discuss findings with Marcos in their next LEDAC meeting.

Senate President Juan Miguel Zubiri on Tuesday said China placed the Philippines in a blacklist of tourism sites due to the continued POGO operations, which the Chinese embassy denied.

POGOs target customers in China, where gambling is illegal. Beijing has previously called on Manila to ban all forms of online gambling.

• 'Pilipinas delikadong malagay sa tourism blacklist ng China dahil sa POGO'
• PH has 1 pct conviction rate for POGO-related crimes: Gatchalian

Many Filipinos complain POGOs have evaded taxes and driven up property rates while not providing job opportunities because not enough locals speak Chinese languages.

About 34 POGOs are licensed to operate and around 130 support services are registered, according to the Philippine gaming regulator.

Finance Secretary Benjamin Diokno said in September he wanted online gaming operators banned. He said revenues from POGOs peaked in 2020 at P7.2 billion, but fell sharply last year to P3.9 billion.

"If you ask my personal opinion on this, let's discontinue with the POGO because of the social cost," he told a Senate hearing.

But David Leechiu, chief executive of Manila-based Leechiu Property Consultants, estimated the Philippine economy could lose P200 billion in rental revenue and salaries if POGOs were expelled.

"It's one of those drivers of the economy that we should not take for granted," he told AFP. "Yes, there are problems but what business does not have a problem?"

— With a report from Agence France-Presse

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