Could the Philippines be heading to an online gaming ban?

The Philippines’ iGaming sector has experienced some notable challenges in recent years. In particular, significant concern has materialised in relation to the activities of POGO’s, (Philippine Offshore Gaming Operators), externally based gambling firms who have a licence to trade within the realms of country’s digital space. Such is the scale of their illicit behaviour, it’s virtually an open secret that many of these organizations have express links to criminal syndicates.

Now, influential politician Joel Villanueva, who was elected Senate leader earlier this year, has mobilized a piece of legislation that would spell the end for the island-state’s online gaming sector. Villanueva is steadfast in his belief that iGaming should have no place in Philippine society and suggests that its removal would serve to completely eradicate problem gambling, despite his plan permitting the continuation of bricks-and-mortar casino operations. The ban would be draconian in nature, fixing heavy penalties to those who engage in any form of online play. It’s understood that those who would ignore the proposed guidance could serve a custodial sentence of up to six months and be fined up to PHP 50,000 (US$8,710), more than double the national salary average.

Nevertheless, if the undesirable practices of POGOs are strengthening Villanueva’s hand in discussions surrounding the online industry, then PAGCOR (Philippine Amusement and Gaming Corporation), the organization empowered to regulate the native marketplace, are working hard to undermine the Senator’s calls for change. Last weekend, PAGCOR rescued 140 foreign individuals from a mass kidnapping conducted by a POGO, one of a string of fifteen similar incidents in recent months. Although there are less active POGOs than in previous years, largely due to a vicious cycle of crime and subsequent falling revenues, their threat remains a serious one.

Concerningly, Villanueva’s ‘Anti-Gambling Act’ is gaining traction in the Senate, with several high-ranking officials now endorsing this bill. However, the east Asian state’s political chambers have resisted pressure to discard iGaming in the past, with neighbours China recently lobbying for a complete ban on POGO outfits. ThePHP 7.18bn (US$149.3m) generated in GGR each year was enough to convince politicians to fend off Beijing’s advances – perhaps a similar response will see Villanueva’s campaign put to the sword in the coming weeks.