The Philippines’ president has officially issued Executive Order 74, banning the operation of Offshore Gaming Operators (POGOs) in the country, with all operations to be wound up by December 31st.
The decree was signed on November 5th but only publicized today by Malcañang Palace.
It follows the order to ban POGOs in the country issued by President Ferdinand Marcos Jr. during his State of the Nation Address back in July.
The Presidential Communications Office issued a release today, citing the President as saying, “The State has the paramount duty to safeguard national security, maintain public order, uphold the rule of law, protect the safety of its citizens, and ensure the integrity of the social fabric of the nation”.
POGOs have been widely in focus due to a rise in criminal activities associated with offshore gaming, both with licensed and unlicensed operations.
What’s covered?
Under Executive Order 74, the ban includes a wide range of offshore gaming entities, which it defines.
These include:
- POGO licensees authorized by PAGCOR;
- POGO Gaming Agents (representatives in the Philippines of offshore-based licensees);
- POGO service providers (BPOs).
This last element also includes ‘Business corporations organized in the Philippines which provide components of offshore gaming operations to POGOs such as strategic support provider, IT support provider, live studio and streaming provider, and gaming software provider’.
The offshore gaming operations and services covered are ‘online games of chance, limited to live-streamed electronic casino (e-casino) games, online random number generator (RNG) games, and online sports betting, exclusively and directly offered to foreign players, located outside of the Philippines, via the internet or online means’.
IGLs (internet gaming licensees – the newer definition used for POGOs) are equally covered – under the same definition, while also including local gaming agents – ‘a duly constituted business enterprise of good repute […] who represents a Foreign-based IGL licensee’, as well as ‘authorized gaming content provider or authorized support provider’ – ‘a duly constituted corporation organized in the Philippines providing the components of internet gaming operations’.
Ban target
The ban also immediately targets all POGO or IGL ‘and other offshore gaming operators without the necessary license, permit, or authorization, classifying them as illegal gambling entities’ and subject to the ‘ongoing and intensified crackdown on illegal gambling activities’.
License applications were similarly halted for any ‘licenses, permits or authorizations of POGO/IGL and other offshore gaming applications’.
The ban further includes authorizations for ‘related/auxiliary/ancillary services’. This is both for entities ‘under the authority of PAGCOR’ as well as ‘other government licensing authorities and within the jurisdiction of the Republic of the Philippines’.
License renewals are similarly canceled and all licensed or permitted operations have to wind up their affairs by December 31st or earlier, as previously outlined.
Employees and regional governments
The Executive Order also covers employment recovery and reintegration, aiming to help displaced workers find replacement jobs ‘at the soonest possible time’.
Aside from setting up working groups to both crack down on offshore gaming operations before the deadline and help displaced workers, the Executive Order empowers local governments to ‘effectively implement the foregoing ban on offshore gaming services and operations within their respective jurisdictions’, providing a reporting mechanism to report on suspect activities.
Support for the private sector
The Executive Order does provide a measure of restraint, with the private sector ‘strongly urged to waive interests, penalties, fees, and other charges attendant to the termination of ancillary contracts or services, such as […] lease of premises, janitorial services, security, internet, and electricity’ of licensed offshore gaming operators.
Deterrent of foreign investment and tourism
The Executive Order justifies the ban as being due to ‘the high reputational risks associated with POGO/IGL operations deter foreign investment and tourism, undermining the efforts of the National Government in promoting the country as a safe and sustainable investment and tourism destination’.
It highlights how POGOs and offshore gaming have brought about ‘increased crime rates, social instability, and exploitation of vulnerable people associated with them.’
