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AN official of the Philippine Amusement and Gaming Corp. (Pagcor) said on Thursday the gaming regulator will close down all Philippine offshore gaming operators (POGOs) if Malacañang bans them.
The official, who agreed to a telephone interview but requested anonymity, said Pagcor will abide by the decision of President Ferdinand Marcos Jr. regarding the fate of POGOs.
He said Pagcor has yet to issue an official statement but that Pagcor Chairman and Chief Operating Officer Alejandro Tengco had been interviewed on the proposal of the Finance Secretary Ralph Recto to shut down all gaming operators.
Philippine Amusement and Gaming Corp. Chairman and Chief Executive Officer Alejandro Tengco
On Wednesday, Recto said he recommended to the President a total POGO ban, citing the criminal activities linked to the operators.
Sen. Joel Villanueva wants to rush the passage of Senate Bill 1281 which seeks to ban POGOs and all forms of online gambling.
“It’s about time [to ban POGOs]. We wanted to thank our former colleague in the Senate and now Finance Chief Secretary Ralph Recto and NEDA (National Economic and Development Authority) chief Arsenio Balisacan for joining our cause in calling for the permanent ban of POGOs,” Villanueva said in an online interview.
Based on figures from the Bureau of Internal Revenue, only P10.321 billion was collected from POGOs in 2023, less than half of Pagcor’s P24-billion revenue projection.
Villanueva also praised the Department of Labor and Employment for its plan to help the 22,000 Filipino POGO workers who would be displaced by the ban find new jobs.
Senate Minority Leader Aquilino Pimentel 3rd also stressed the need to ban POGOs, and proposed that the legitimate operators be given one month to wind down their operations.
In a text message, Pimentel said Pagcor should stop issuing licenses and permits and “give the legal ones one month to wind down their operations.” Asked to comment on the alleged lawyering of former presidential spokesman Harry Roque for a POGO hub, Pimentel said: “Harry Roque is out of the government and is a lawyer. Hence, maybe he is practicing his profession which he is allowed to do under existing laws.”
Senate President Francis Escudero said Roque must participate in the Senate investigation on POGOs.
“Anyone accused of anything can face his accuser and air his side. I believe these are serious allegations that Secretary Roque should clarify, especially since he will be invited to the next Senate hearing. It would be prudent for Roque to use this opportunity to explain the issue,” Escudero said.
Sen. Risa Hontiveros, chairman of the Committee on Women, Children, Family Relations and Gender Equality, said Roque must explain his alleged links to Lucky South 99, the illegal POGO hub in Porac, Pampanga, that was raided last month.
Lucky South 99’s organizational chart presented by Hontiveros during Wednesday hearing listed Roque as “Legal.” Roque said he had “never been a legal counsel to any illegal POGO.”
“As stated by Pagcor Chairman Alejandro Tengco in today’s Senate hearing, I requested a rescheduling of arrears payment of a lessee and principal of my client Whirlwind Corporation. My client is a service provider to Lucky South and a holder of a valid license from Pagcor,” he said in a statement.
He denied serving as counsel for Lucky South 99 and said he had no hand in preparing the organizational chart.
“I am more than willing to address Senator Hontiveros’ concerns. Suppose her main concern rests solely on the organizational chart pointing to me as legal counsel of Lucky South 99. In that case, I am eager to challenge her to provide evidence proving my direct involvement in preparing the document. As of now, no such evidence exists,” Roque said.
He called out media outlets for reporting that Tengco said Roque was lobbying for illegal POGOs.
“During Chairman Tengco’s testimony, no such statement was made. On the contrary, he confirmed that my interaction with Pagcor was solely to schedule a payment for Lucky South 99, which held a valid license from Pagcor at that time,” Roque said.
He said the “erroneous” claims not only tarnished his reputation, but also “misled” readers.
He said he met Tengco last year to ask for a rescheduling of payments for Lucky South 99, which he claimed is not an illegal POGO.
Roque called his ties with Lucky South 99 as a “high fiduciary relationship.” He also explained that the service provider for Lucky South 99 was a victim of fraud.
Sen. Grace Poe also supported Recto’s plan. “The recommendation to stop POGO operations by the Finance Secretary only proves that the supposed ‘revenue contribution’ of POGOs to our economy is not worth it and not enough to justify their continued presence in the country,” Poe said.
She said the 0.2 percent contribution of the sector to the gross domestic product “is negligible in light of the social costs that the government has been shouldering since we allowed (POGOs) in our shores.” Even at their peak in 2019, POGOs were only able to contribute 0.7 percent to the GDP, Poe said.
“We tried regulating but our experience shows that POGO is not one that can be regulated. Gradual phase out also proved to be a laughable approach as recent raids prove that it only got worse,” she said.
The Liberal Party (LP) “vehemently demanded” the immediate and total ban of POGOs, citing their threat to national security.
“The continued existence and operations of POGOs have become untenable and unacceptable, posing severe threats to our national security and societal well-being,” the LP said.
Speaker Martin Romualdez has ordered a House inquiry to reveal and hold accountable the “masterminds” and “protectors” of POGOs.
“We cannot allow these rogue POGO operators to persist in their illicit actions. We must identify and unmask the masterminds and protectors behind these operations so they can be prosecuted to the fullest extent of the law,” Romualdez said.
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