Philippines losing P99.52 billion yearly due to POGOs — DOF

I show You how To Make Huge Profits In A Short Time With Cryptos!

MANILA, Philippines — The Department of Finance (DOF) doubled down on its stance to ban Philippine Offshore Gaming Operators (POGOs), saying that allowing the gaming hubs to continue operations is costing the country P99.52 billion a year. 

The Senate Committee on Ways and Means deliberated on Tuesday over two bills: one proposing to ban online gaming and another to tax POGOs.

During the hearing, DOF Assistant Secretary Karlo Adriano, who heads the agency’s Fiscal Policy and Monitoring Group, presented a cost-benefit analysis of POGOs. 

“Our estimates show that the net cost of POGO operation is around P99.52 billion annually. The estimated total economic benefits of POGOs amount to P166.49 billion annually while the estimated total economic costs amount to P265.74 billion,” Adriano said. 

The economic benefits comprised both direct and indirect benefits. Adriano explained that direct economic benefits include tax revenues, gaming revenues, private consumption spending, real estate and other consumptions.

Indirect economic benefits are economic and fiscal multiplier effects.

Meanwhile, the direct economic costs include lost investment opportunities, additional costs of law enforcement and the impact to tourism. Adriano also cited the social costs of allowing POGOs to operate, saying that their analysis does not account for the loss of life and other injuries brought by illegal POGOs. 

“If ever there will be a ban of POGOs, but that can be compensated if there will be more investment that will be coming in because of the ban,” he said. 

Grey market 

During the hearing, Philippine Amusement and Gaming Corp. (PAGCOR) chief Alejandro Tengco said there was a grey market for online gaming and POGOs. Grey markets indicate that the platforms are not registered and operating illegally.  

“Up to 2024, I believe there is still about anywhere between 30% to 40% of the business being controlled by the grey market,” said Tengco. 

The PAGCOR chuef estimated the unregulated industry to be worth around P200 billion.

“There is about a P200 billion market now per annum in the online gaming platform, only in the Philippines, more or less. If you will ask me where am I getting data, we’re just putting together all the numbers that we have seen and we are also in consultation with out consultants,” he said. 

According to the PAGCOR chief,  the agency’s gross gaming revenue has been steadily increasing throughout the years, going from P28 billion in 2022 up to P56 billion in 2023.

Be the first to comment

Leave a Reply

Your email address will not be published.


*