Philippine President Ferdinand Marcos Jr. has issued an order to shut down a vast network of online casinos implicated in numerous criminal activities. These establishments, known as Philippine Offshore Gaming Operators (Pogos), primarily target players from mainland China, where gambling is illegal. However, they have increasingly been utilized as fronts for illegal activities such as telephone scams and human trafficking.
Under former President Rodrigo Duterte, who sought closer ties with China, Pogos experienced significant growth. In his annual address to parliament on Monday, President Marcos emphasized the urgent need to end the exploitation of the country. “Disguising as legitimate entities, their operations have ventured into illicit areas furthest from gaming such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder,” he stated.
Following this, the Philippine gaming regulator announced on Tuesday that it would revoke the licenses of Pogos and phase out the industry by the end of the year. The sector, which includes over 400 licensed and unlicensed operators, employs approximately 40,000 people, both directly and indirectly. Despite generating an estimated annual revenue of 166.5 billion pesos ($2.9 billion), the economic costs are believed to be around 266 billion pesos annually.
The media reached out to businesses and employees connected to Pogos, but they declined to comment. The connection between Pogos and criminal enterprises recently garnered national attention when a Pogo operation in a small town was exposed as a front for a scam center. The town’s mayor, Alice Guo, is currently accused of being a Chinese spy and is reportedly in hiding.
Additionally, Pogos have been linked to clandestine hospitals, which allegedly offered services such as plastic surgery to fugitives and scam center workers to help them avoid capture. Since taking office, President Marcos has shifted the Philippines’ foreign policy back towards its historic ally, the United States, moving away from China. Some analysts interpret the Pogo ban as a strategic move to further distance the country from China amidst ongoing territorial disputes in the South China Sea.
Jean Encinas-Franco, a professor at the University of the Philippines Diliman, told the media that Pogos have come to symbolize China’s encroachment on the Philippines for many ordinary Filipinos. She also noted that Marcos’ decision could be seen as a repudiation of the previous administration’s open Pogo policy, potentially boosting his approval ratings ahead of the 2025 mid-term elections.
Domestically, the ban has been well-received as beneficial for business. Philippine Trade Secretary Alfredo Pascual told local media that the ban enhances the country’s appeal to leisure seekers, as Pogos have tarnished the nation’s image by fostering violence. George Barcelon, chairman of the Philippine Chamber of Commerce and Industry, added that Pogos attract undesirable elements and threaten the country’s moral integrity.
