Authorities in Philippines mobilize for huge clampdown of POGO’s

It seems the recent wave of POGO (Philippine Offshore Gaming Operators) criminal activity has finally worn down the patience of the Philippines’ national government, who will now work in collaboration with the native regulator to rid the country’s online gaming space of illicit, offshore actors.

PAGCOR (Philippine Amusement and Gaming Corporation), the group empowered to regulate the island’s gambling industry, have already stepped-up efforts in recent months, after it emerged that a significant number of POGO’s had been involved in a spate of kidnapping activity. Now, the regulator will join state officials in attempting to eradicate 175 POGO enterprises from the local marketplace, and deport 40k Chinese workers as a direct consequence of halting business operations.

The Philippines’ nascent iGaming sector, which materialised in 2016, has witnessed unprecedented growth over the last few years, with off-shore firms attracted to an environment of relaxed gaming laws, and a backdoor route to tap into China’s restricted masses. Ever since Mao’s assumption of power in 1949, Beijing has outlawed all gambling verticals on Chinese soil, and even tries to prevent its citizens from betting abroad. Therefore, countries in close proximity to China, such as the Philippines, provide a perfect base in which to try and infiltrate this tightly monitored market.

Given recent developments, it’s believed that the number of operational POGO’s has significantly reduced in the last few years. A combination of PAGCOR licensing suspensions, the pandemic, and increased taxation has caused this considerable exodus, and the regulator now believes around half the POGO estate has left since the onset of the coronavirus crises in 2020.

It’s unclear as to whether this action will pre-empt the full closure of the online gaming sector. There is now a serious political campaign to rid the country of all iGaming interests, but an industry worth PHP190bn ($3.22bn) to the economy each year may prove extremely difficult to shift.