The Phil-Asian Gaming Expo featured offshore games targeting bettors outside the Philippines. Jessica Fenol, ABS-CBN News/FileMANILA — A bill seeking to ban the operations of Philippine Offshore Gaming Operators (POGOs) in the country moved a step closer to becoming a law, as the House Committee on Games and Amusements on Monday approved House Bill 5082.

Majority of POGO-related crime victims speak Chinese, says PNP chief

The panel also approved House Resolution 1197 urging the Philippine Amusement and Gaming Corporation (Pagcor) to ban POGOs in the country.

The committee’s action comes amid reports of human trafficking, kidnapping, and other crimes being linked to the operation of some POGOs.

“The POGOs form part of a multi-billion gambling industry contributing revenues for the country, that has also been allegedly used for illegal activities such as money laundering, illegal immigration and employment, and kidnapping, and other violent criminal cases… PNP data show a total of 4,039 victims in POGO-related crimes recorded in this 6 months of 2023,” House Resolution 1197 author and Cagayan de Oro 2nd District Rep. Rufus Rodriguez said.

Senators want POGO workers' employment permits revoked, reviewed

“Whatever has been the benefits accrued to our country produced a graver concern and problem of peace and order… In the tax collection perspective, the economic benefits are declining. And so if you weigh the so-called economic benefits to the social costs to this country, it is very clear that POGO has to go,” he added.

Gabriela Party List Rep. Arlene Brosas said the Philippines is not gaining anything from POGOs when viewed beside "social cost".

“‘Pag ganito naman ang social cost, I don't think nakaka-gain tayo, we really lose so much. ‘Yung usapin ng prostitution ng women, ‘yung usapin ng human trafficking, hindi ‘yan ma-address address ng agencies… We should stop this,” she said.

Pagcor chairman and CEO Alejandro Tengco told the committee they have implemented reforms to help curb illegal activities in POGOs.

The state regulator required all POGOs to re-apply for a license last year, and granted licenses only to those that hurdled a probity check conducted by a third party checker.

This has reduced the number of licensed POGOs in the country to around 75 from close to 300 in 2019, according to Pagcor. Of this number, less than half are Chinese-owned.

“‘Yung 75 na ‘yun, we’re not saying they are perfect, 100 percent wala nang na-iinvolve sa criminal activities, pero sa namo-monitor namin, since the last quarter of 2023, hanggang dito sa unang buwan ng Enero, malaki na ang tunay na nabawas sa nabanggit ni Cong. Rodriguez na criminal activities na ito,” Tengco said.

As part of efforts to cleanse the sector from illegal activities, Pagcor has changed the term “POGO” to “IGL”, which stands for Internet Gaming Licensee.

“‘Yung kulay kahit palitan mo ‘yung shape, may black pa rin ‘yun,” Bulacan 2nd District Rep. Augustina Dominique Pancho said.

“Pinalitan din namin ang rules and regulations, so we didn’t only change the name and it remained to be the same in terms of structure and in terms of regulations,” Tengco replied.

POGO hub sinalakay; umano'y prostitution den nadiskubre

Pagcor revenues from POGOs are expected to hit P6.5 billion this year. Earnings from the sector comprise around 5 percent to 6 percent of Pagcor’s total revenues.

“Ang malaki talaga ngayon is licensed casinos,” Tengco said.

“The main effect of the closure, number one is the jobs ng Filipinos na 25,000 Filipinos are licensed employees. Yung real estate sector, ‘yun ang tatamaan talaga. There are 625,000 sqm of commercial/office space that’s being leased. We haven’t considered the residential or housing facilities they are leasing… may ancillary businesses pa po ‘yun. Basically they’re saying it’s about a P200 billion industry,” he added.

Under House Bill 5082, the facilitation of any offshore gaming through any means or device within Philippine territory, the acceptance of any form of betting for purposes of offshore gaming operations, acting as a service provider for offshore gaming operations, and the creation of a POGO hub in the Philippines are prohibited.

Once the measure is enacted, persons or entities that received government license for the purpose of offshore gaming operations in the Philippines are deemed revoked.

Penalties for violation of the proposed ban on POGO operations range from a 4-year to 10-year imprisonment and a fine of P100,000 to P10,000,000 depending on the frequency of offense.

PASSPORTS

Lawmakers also questioned the issuance of Philippine passports to foreign nationals, including Chinese.

The Department of Foreign Affairs (DFA) said Chinese nationals presented fraudulently acquired birth certificates from the Philippine Statistics Authority (PSA) and government-issued IDs.

“At present the DFA is investigating six foreign nationals issued with Philippine passports that were referred by the Bureau of Immigration in 2023, and the 9 suspected foreign nationals on the basis of submitting fraudulently acquired PSA birth certificates and fake Land Transportation Office driver’s licenses,” DFA director Leilanie Feliciano explained.

“These foreign nationals posed themselves as Filipinos by assuming Filipino identities through the presentation of authentic and genuine PSA birth certificates with valid government-issued identification cards that are accepted for a passport application,” she added.

The DFA is closely coordinating with other government agencies and the PSA to come up with a system that will allow its frontliners to immediately validate PSA documents.