According to the Philippine Amusement and Gaming Corporation (PAGCOR), the Philippines is approaching to a full elimination all Philippine offshore gaming operations (POGOs) with only seven licensed operators left.
By 2025, the Philippines plans to eliminate all Philippine offshore gaming operations (POGOs), as President Ferdinand R. Marcos Jr.’s made a strong move to impose a total ban on the controversial industry. Authorities are now preparing for the potential emergence of underground “guerrilla operations” while working to enforce the ban.
He mentioned that authorities are preparing to target rogue operators who may attempt to continue their activities secretly. The government initiated the POGO phase-out in July 2024 in response to growing concerns about the sector’s effects on the country. POGOs have been connected to human trafficking, prostitution, and violent crimes including murder, causing alarm among lawmakers, law enforcement and the public.
Alejandro Tengco, the chair of PAGCOR, stated that the legal POGO market is declining rapidly. Only seven operators remain, which is a significant decrease from the more than 60 that were operational just this past summer. This number is still much lower than what was reported only a week ago.
Tengco expressed confidence in the process, stating that licensees are working with PAGCOR, the Bureau of Immigration (BI), and the Department of Labor and Employment (DOLE) to responsibly close their operations.
Banning POGOs reflects the government’s awareness of the industry’s harmful consequences. What started as a potential source of income for the Philippines has been criticized for encouraging social issues and crime.
Reports of human trafficking involving workers being forced into the gambling sector have affected the country’s reputation. Additionally, concerns over tax evasion, money laundering, and worsening relations with China, which disapproves of offshore gambling aimed at its citizens, have also played a role in the decision. The economic benefits from POGOs, including tax revenue and job opportunities, seem overshadowed by these challenges. Critics even argue that the social and security costs outweigh any financial advantages.
The POGO industry contributed approximately $890 million to the Philippine economy in 2022. This included direct revenues from license fees, taxes, and related business activities, alongside indirect contributions from employment, real estate leases, and supporting services.
POGOs played a significant role in boosting the commercial real estate market, with rising demand for office spaces and residential units in Metro Manila, as well as in other cities due to POGO workers. Though by 2023, the industry’s economic impact began to decline significantly, due to regulatory challenges, international scrutiny, and increased taxes on POGO operations, which negatively affected its profitability and stability.
While progress is being made in shutting down licensed POGOs, authorities are preparing for the challenges that could arise from underground operations.
Gilbert Cruz, executive director of the Presidential Anti-Organized Crime Commission (PAOOC), cautioned that POGO workers may attempt to set up illegal gambling activities once the ban fully takes effect in January 2026. Law enforcement agencies are preparing to meet shortly to plan strategies for identifying and shutting down these operations.
A key component of the government’s POGO phase-out is addressing the large number of foreign workers in the industry. Many of these workers, mostly Chinese nationals, have been told to leave the country. The PAOOC reported on its Facebook page that over 21,757 foreign nationals connected to POGOs have switched their work visas to tourist visas, with more than 10,800 already leaving the Philippines. The Bureau of Immigration (BI) has also canceled thousands of visas that had not been updated.
As part of bilateral cooperation, the Philippine government recently deported 190 Chinese nationals linked to illegal gambling operations.This action reflects the shared commitment between the Philippines and China to tackle cross-border criminal activities, despite their ongoing geopolitical tensions.
By 2025, the Philippines plans to eliminate all Philippine offshore gaming operations (POGOs), as President Ferdinand R. Marcos Jr.’s made a strong move to impose a total ban on the controversial industry. Authorities are now preparing for the potential emergence of underground “guerrilla operations” while working to enforce the ban.
He mentioned that authorities are preparing to target rogue operators who may attempt to continue their activities secretly. The government initiated the POGO phase-out in July 2024 in response to growing concerns about the sector’s effects on the country. POGOs have been connected to human trafficking, prostitution, and violent crimes including murder, causing alarm among lawmakers, law enforcement and the public.
Alejandro Tengco, the chair of PAGCOR, stated that the legal POGO market is declining rapidly. Only seven operators remain, which is a significant decrease from the more than 60 that were operational just this past summer. This number is still much lower than what was reported only a week ago.
Tengco expressed confidence in the process, stating that licensees are working with PAGCOR, the Bureau of Immigration (BI), and the Department of Labor and Employment (DOLE) to responsibly close their operations.
Philippines Shuts Down POGOs
Banning POGOs reflects the government’s awareness of the industry’s harmful consequences. What started as a potential source of income for the Philippines has been criticized for encouraging social issues and crime.
Reports of human trafficking involving workers being forced into the gambling sector have affected the country’s reputation. Additionally, concerns over tax evasion, money laundering, and worsening relations with China, which disapproves of offshore gambling aimed at its citizens, have also played a role in the decision. The economic benefits from POGOs, including tax revenue and job opportunities, seem overshadowed by these challenges. Critics even argue that the social and security costs outweigh any financial advantages.
The POGO industry contributed approximately $890 million to the Philippine economy in 2022. This included direct revenues from license fees, taxes, and related business activities, alongside indirect contributions from employment, real estate leases, and supporting services.
POGOs played a significant role in boosting the commercial real estate market, with rising demand for office spaces and residential units in Metro Manila, as well as in other cities due to POGO workers. Though by 2023, the industry’s economic impact began to decline significantly, due to regulatory challenges, international scrutiny, and increased taxes on POGO operations, which negatively affected its profitability and stability.
Taking action against unauthorized activities
While progress is being made in shutting down licensed POGOs, authorities are preparing for the challenges that could arise from underground operations.
Gilbert Cruz, executive director of the Presidential Anti-Organized Crime Commission (PAOOC), cautioned that POGO workers may attempt to set up illegal gambling activities once the ban fully takes effect in January 2026. Law enforcement agencies are preparing to meet shortly to plan strategies for identifying and shutting down these operations.
A key component of the government’s POGO phase-out is addressing the large number of foreign workers in the industry. Many of these workers, mostly Chinese nationals, have been told to leave the country. The PAOOC reported on its Facebook page that over 21,757 foreign nationals connected to POGOs have switched their work visas to tourist visas, with more than 10,800 already leaving the Philippines. The Bureau of Immigration (BI) has also canceled thousands of visas that had not been updated.
As part of bilateral cooperation, the Philippine government recently deported 190 Chinese nationals linked to illegal gambling operations.This action reflects the shared commitment between the Philippines and China to tackle cross-border criminal activities, despite their ongoing geopolitical tensions.
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