The Philippines’ Presidential Anti-Organized Crime Commission is expecting an Executive Order (EO) on the total ban of offshore gaming operations (POGOs) as soon as two weeks from now.
The PAOCC Executive Director Gilbert Cruz, cited by local media, told the Senate Committee on Ways and Means that he had “seen the draft” but that the measures for the exact implementation were still under discussion.
“How it will be implemented is still being resolved … the only things being discussed are the concept of the operation and how it will be disseminated,” noted the official, cited by the Inquirer.
The PAOCC official faced questions from senators about whether the Executive Order would also cover Business Process Outsourcing (BPO) entities and online games. In response, Cruz indicated that a technical working group will be formed, including the nation’s gaming regulator PAGCOR.
In response to Senator’s inquiries, PAGCOR Chairman Alejandro H. Tengco noted that BPOs only provide services to gaming companies outside the country.
“They do not accept any form of bets. The main thing that they do is serve as backroom operations of legitimate and big gaming companies based all over the world”. However, the official did indicate that members of the Senate Committee on Games and Amusement will visit three Special-class BPOs to evaluate their operations.
Bills still being pushed to future-proof the ban
Despite the assurance that the EO would soon be coming, Senator Sherwin Gatchalian indicated that he would continue his push with legislation against POGO operations, future-proofing the ban.
“We will clearly define what is POGO, what are the business associated with POGOs […] we will include all that in the law so that it will be institutionalized. Whoever is the sitting President, these POGOs cannot be allowed to operate again because there is already a law against them,” indicated Gatchalian, cited by the publication.
Gatchalian has also taken a focus on PIGOs (onshore gaming from local clients), claiming there are weaknesses in current regulations, particularly for opening accounts.
“Even minors can open an eGaming account using a fake name and age […] since you can provide a fake name, you can also do money laundering.”
Sherwin Gatchalian
Gatchalian questioned PAGCOR Chairman Alejandro H. Tengco whether integrated resorts’ shift into also providing eGaming would have a ‘cannibalization’ effect on land-based casino revenue. Tengco agreed that a certain affect would be seen on the gaming industry but that integrated resorts in the country would continue, both nationally and worldwide, due to a desire for in-person gaming.
Senators Alan Peter Cayetano and Senator Joel Villanueva are also seeking to prohibit all forms of online gambling, with Gatchalian looking to consolidate his proposed bill repealing the Act Taxing POGOs with theirs into one comprehensive bill banning all POGO operations.
Bad actors
The POGO issue has remained starkly in the public’s focus due to the ongoing saga surrounding ‘POGO mayor’ Alice Guo, who fled the Philippines but was apprehended in Jakarta and has returned to the country to face various accusations of illegality.
These include links to the Lucky South 99 operation, via Cassandra Ong, linking POGO operations in Guo’s area of Bamban and Porac – where the Lucky South 99 operation was located.
Ong, along with 53 others, is also facing accusations from Authorities that are also trying to prove links between Lucky South 99 and former Presidential Spokesperson Harry Roque.
Roque has been held in contempt by a quad committee of the House of Representatives for failing to submit subpoenaed documents regarding his business and financial records. The documents are believed to be crucial in determining whether Roque had links to illegal POGOs.
The PAOCC is now also investigating claims that there is a “mass grave” inside the Lukcy South 99 property in Pampanga, with authorities securing a search warrant to check the claims.
