Operatives of PNP Anti-Cybercrime Group process seized computers and cellphones used for alleged illegal Philippine Offshore Gaming operation in Almanza Uno in Las Pinas City last June 2023. ABS-CBN News/File

MANILA — They were touted as a new source of revenue when the government started regulating them in 2016—but 8 years later, several sectors are now calling for the total ban on Philippine Offshore Gaming Operators (POGOs).

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Now called Internet Gaming Licensees (IGL), the business has been associated with illegal activities such as scams, torture, human trafficking, and possibly even espionage and killings.

This situation was different from when former President Rodrigo Duterte endorsed POGOs in 2020.

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“I will assure you under my oath of office as President of the republic, as elected by you, ‘yang POGO na ‘yan (that POGO)…malinis 'yan (that’s clean),” Duterte said during the General Assembly of the League of Municipalities of the Philippines.

Phil-Asian Gaming Expo features offshore games targeting bettors outside the Philippines. Games can be played on desktop or mobile devices. Photos taken at the SMX Convention Center. July 12, 2019. Jessica Fenol, ABS-CBN News/FileFast forward to 2024, the Philippine Amusement and Gaming Corporation (PAGCOR) said they estimate illegal IGLs to be around 250, and only 46 have licenses.

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According to PAGCOR chairman and Chief Executive Officer Alejandro Tengco, what started as legal gaming platforms became hubs for illegal activities when syndicates came in.

“May mga nag-ooperate na criminal syndicates na talagang ‘yan ang hanapbuhay. Baka maaaring ‘yun, sapagkat nakita nilang medyo maluwag ang PAGCOR nung panahon nung nakaraan. Eh, napasok sila without PAGCOR knowing that they were already doing criminal activities instead of gaming operations,” Tengco said.

(There are criminal syndicates who operate in that line of work. It could be that they saw PAGCOR to be a bit lenient in the past. They were able to come in without PAGCOR knowing that they were already doing criminal activities instead of gaming operations.)

Presidential Anti-Organized Crime Commission (PAOCC) chief Undersecretary Gilbert Cruz and Senator Sherwin Gatchalian said syndicates ran to the Philippines after a crackdown in other countries such as China and Vietnam.

“Ang pakiramdam kasi nila dito sa Pilipinas, masakit man sabihin, pero parang napakaluwag natin dito eh. Parang lahat dito puwede mong kaibiganin para makuha mo ‘yung gusto mo. Lahat dito parang puwede mong suhulan,” Cruz stated. 

“Dito parang nakakita sila ng paraiso.”

(They feel that here in the Philippines, although it is painful to say, it’s like we are very lenient here. It’s like you can befriend everyone here to get what you want. It’s like you can bribe almost anyone. They found a paradise here.)

“Itong mga organized crime na nagtakbuhan, naging legitimate because we are giving them license,” Gatchalian said.

(These organized crime that ran, they became legitimate becase we are giving them licenses.)

Crimes related to POGOs such as kidnapping were observed around the time of the pandemic, according to Gatchalian, but illegal activities increased in 2022.

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When Tengco took the helm of PAGCOR, they restructured the rules and ordered POGOs to reapply. More than 250 did not. They assumed that these are illegally operating still after relocating and hiding from the law.

PAGCOR also rebranded the name POGO to IGL to disassociate it with the negative reputation.

MODUS

The big question then is: How are illegal POGOs able to operate?

According to PAOCC and PAGCOR, operators hide behind their licenses.

“Sasabihin nila na willing silang magpa-inspection sa PAGCOR para sabihin na legit sila but actually ang pinapa-inspect lang nila ‘yung lugar let’s say halimbawa sa isang building o kaya sa isang floor na kung saan makikita mo ‘yung legit na online gaming. But sa likod nun, meron silang ibang floors o kaya meron silang ibang rooms na nag-eengage naman dito sa scamming activities,” Cruz said.

(They will say they are willing to be inspected by PAGCOR but what they open to inspection is a building or floor where legit online gaming happens. Behind that, there are other floors or rooms where scamming activities happen.)

Tengco cited the case of Baofu Compound in Bamban, Tarlac where PAGCOR employees were assigned to monitor the POGOs.

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Gatchalian previously criticized PAGCOR for not being able to monitor the illegal activities in Bamban, but Tengco said the coverage of the license they issued was limited to just one part of the area.

“Ang binabantayan lang nila ‘yung isang building which is how many hundreds of meters away from the illegal activities…‘Yung may lisensya doon ay nasa isang gilid lang. At doon sa kanan na lugar ng compound, ay gated doon…Wala na po kaming kapangyarihan makapasok doon,” Tengco said.

(What they monitored was just one building which is how many hundreds of meters away from the illegal activities…The one with the license is just one part. The right side of the compound is gated. We do not have access to that.)

“We cannot differentiate anymore which are legal and illegal because the legal, in front, sasabihin nila na wala silang ginagawa pero sa likod, may mga ganitong nangyayari (will say they are not doing anything illegal),” Gatchalian said.

Authorities are also suspicious of local government units saying they do not know how illegal POGOs in their communities were able to operate.

In the case of Lucky South 99 in Porac, Pampanga, PAGCOR already denied its application for license in May 22 of this year but it was still operating on the day it was raided on June 4.

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“Kung titignan mo kung gano'ng kalaki ang operasyon. Kahit papaano naman siguro sa barangay man lamang, malalaman mo na meron doon 46 na building at libong tao,” Tengco stated.

(That big of an operation, the village officials could have at least known that there were 46 buildings and thousands of people.)

Gatchalian believes money is involved, saying “‘Yan naman ‘yung lumabas sa executive session namin at conversations namin sa mga enforcement agencies na itong mga POGOs marunong rin gumamit ng pera para makakuha ng impluwensiya.”

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(That is what was revealed in our executive session, conversations with enforcement agencies that POGOs know how to use money to get influence.)

In a June 6 press conference, Gatchalian said they suspected the influence of POGOs to have already reached politicians, enforcement agencies, the judiciary, and local criminal syndicates.

Senate Deputy Minority Leader Risa Hontiveros also points to corruption as the alleged reason why even after eight inquiries led by her committee, illegal activities of POGOs persist.

“Corruption of public officers is a problem. Mukhang may mga protektor sila sa gobyerno,” Hontiveros said in a statement.

(It seems like POGOs have a protector in government.)

“Kung sa kaso lang ni Mayor Alice Guo ang pagbabatayan, nakikita na natin na may impluwensiya ang POGO sa mga opisyal, kasama na ang mga lokal na pamahalaan,” she added.

(Just looking at the case of Mayor Alice Guo, we already see that POGOs have influence on officials, both in local and national government.)

Gatchalian and Hontiveros have appealed to President Ferdinand Marcos, Jr. to ban POGOs.

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Officials from various government agencies attend the senate Inquiry on money laundering, crimes, and other illegal activities associated with the operations of Philippine Offshore Gaming Operators (POGOs) in the country, held at the Senate building in Pasay City on March 5, 2020. Jonathan Cellona, ABS-CBN News

MORE HARM THAN GOOD

Tengco is quick to say, however, that banning POGOs is not the way to go due to loss of revenue for the country.  

In 2023, PAGCOR’s revenues from POGO operations amounted to P5.3 billion from the 46 licensed operators; the agency expects P6.5 billion to P7 billion at the end of 2024.

He said that in terms of Gross Domestic Product, POGOs contributed more than P20 billion last year.

Part of the money collected by PAGCOR goes to the national treasury, PhilHealth, and donations, among others.

POGOs also directly employ around 31,000 Filipinos which is slightly higher than the 29,000 to 30,000 foreign workers.

Tengco said the employees, along with others such as janitorial services, will suffer from unemployment once POGOs are prohibited.

He said legal POGOs may also go underground that will result in harder monitoring and foregone revenue.

PAGCOR insisted that it has become stricter in regulating POGOs, adding that of the 46 legal gaming operators, three are currently suspended for not meeting requirements.

Tengco said they also help other agencies in going after illegal POGOs such as in providing them with the necessary information.

“Napakahirap ng panahon ngayon,” the PAGCOR chief said. “‘Yung contributions natin to nation-building sayang din.”

(The current times are very heard. Our contributions to nation building will go to waste.)

Lawmakers argued, however, that peace and order must take precedence.

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“It is not enough. Walang katapat na pera ang seguridad at kaayusan ng ating lipunan,” Hontiveros stated.

(No amount of money can equal the security and order in our society.)

“Chairman ako ng Ways and Means Committee. Ang trabaho ko, maghanap ng kita,” Gatchalian said. “Willing ako tanggalin ‘yung kita sa POGO…basta tahimik ‘yung ating bansa.”

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Hontiveros will file a bill repealing Republic Act 11590 or an Act Taxing Philippine Offshore Gaming Operations, the law that legitimizes the operation of POGOs.

In May, Gatchalian filed Senate Bill 2689 which also seeks to revoke the same law.

Other agencies such as the Department of Finance and National Economic and Development Authority have also supported calls to ban POGOs saying they do more harm than good.

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