SEN. Juan Miguel Zubiri on Thursday became the sixth senator to support a total ban on Philippine offshore gaming operators (POGOs), saying the revenue earned from taxing their operations “is not enough to justify their continued stay, which results in criminality and immorality.”
Zubiri's statement dovetails with the recommendations of Finance Secretary Ralph Recto and National Economic and Development Authority Secretary Arsenio Balisacan and influential business groups to impose a complete ban on the online casinos that have been linked to crimes such as human trafficking and kidnapping.
The Department of Finance has said the net cost of POGO operations in the country is P99.52 billion annually, excluding substantial social costs such as the loss of life, security risks, and the harm done to the country's reputation.
Zubiri, who says licensed POGOs should be given a two-year transition period before they are banned, pointed to the trafficking of women, illegal employment of foreign workers pretending to be tourists, prostitution, kidnapping, gun running and murder as crimes that plague the industry.
“It's time to clamp down and phase [them] out completely,” Zubiri said.
Senate Minority Leader Aquilino Pimentel III, said in a text message: “If the President truly listens to the Filipino people, then [he] should already ban POGOs immediately.”
There should be “no more distinction between legal and illegal POGOs,” the senator said. “Make all POGOs, now called IGLs (internet gaming licensees) illegal.”
Sen. Joel Villanueva, author of Senate Bill 1281 or the proposed Anti-Online Gambling Act, lauded the Philippine National Police (PNP) for their support for the passage of the measure.
“Our advocacy for a complete ban on Philippine offshore gaming operators and all online gambling activities is gaining momentum,” he said in a statement.
“We appreciate the PNP's recognition that the social costs far outweigh any potential benefits,” the senator said. He said POGOs have “no contribution” to the economy.
Since 2022, the PNP and the Presidential Anti-Organized Crime Commission have raided 12 suspected illegal POGO hubs and uncovered sites showing signs of being used for abuse and exploitation, such as sex dens and torture chambers.
Villanueva said that crimes linked to POGOs include forcible abduction, homicide, illegal detention, and kidnap-for-ransom.
“We are opening the floodgates of hell if we allow illegal activities brought about by online gambling in our country,” he said.
“There should be no debate that the overall costs of gambling far outweigh any benefits. Therefore, we must prohibit all online gambling activities and put an end to this once and for all,” Villanueva said.
Senate President Francis Escudero has welcomed Recto's call to ban POGOs. Other senators who have publicly supported a total ban are Senators Risa Hontiveros and Sherwin Gatchalian.
Business groups that expressed support for a total ban of POGOs include the Makati Business Club, Alyansa Agrikultura, Financial Executives Institute of the Philippines, Foundation for Economic Freedom, Institute of Corporate Directors, Justice Reform Initiative, Management Association of the Philippines, and the University of the Philippines School of Economics Alumni Association.
They were joined Thursday by the Philippine Chamber of Commerce and Industry (PCCI).
PCCI President Enunina Mangio urged the government and Philippine Amusement Gaming Corp. (Pagcor) to suspend and phase out all POGOs, following a tiered phaseout that starts with all POGOs operating without a license.
PCCI also said that other government agencies, including the Bureau of Internal Revenue and the Bureau of Immigration, should carefully review the mandates from licenses, work licenses and tax obligations of the POGO operators.
Mangio added that Pagcor and other government agencies should create credible alternative employment opportunities for those who will be affected by the POGO closures.
On the other hand, the PCCI chief emphasized that the phaseout be managed carefully to avoid negative effects on the economy.
“PCCI is concerned over the wide-ranging impact on other sectors, especially the commercial property sector as many investors constructed office buildings to house the POGOs,” she said.
The group noted that a sudden closure of all POGOs could cause massive loss of jobs and related displacement of many businesses and industries, from food services to administrative support and transport services.
PCCI is worried over the spillover effects of the POGO closures on the financial institutions who funded new office buildings to accommodate the POGOs and the collateral damage for ancillary industries such as real estate and communication services.
POGOs, the chamber said, pose serious social threats as they were exploited as breeding grounds for crime, scams, and human rights violations.
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