Philippines Senator Risa Hontiveros warned on Saturday that the recent order from President Ferdinand Marcos Jr. to shut down Philippine Offshore Gaming Operators (POGOs) may have significant loopholes.
According to local media Inquirer, Hontiveros pointed out that the Executive Order (EO) did not explicitly include all establishments, particularly those outside the oversight of the Philippine Amusement and Gaming Corporation (PAGCOR), such as those operating within the Cagayan and Aurora Freeports.
While Malacañang Palace has clarified that it directed the Cagayan Economic Zone Authority (CEZA) to comply with the shutdown order, Hontiveros remains concerned.
Executive Order No. 74 follows President Marcos’ announcement during his State of the Nation Address (SONA) in July, where he pledged to phase out POGOs and end their operations by December 31st.
Hontiveros expressed support for the goals of the EO and welcomed the reintegration program for displaced workers.
Lack of clarity over CEZA
Senator Risa Hontiveros identified problems with the lack of clarity in Executive Order No. 74, specifically regarding the operation of POGOs in economic zones. She pointed out that Section 1b of the order states that the ban does not apply to online games of chance conducted in PAGCOR-operated casinos, licensed casinos, or integrated resorts with junket agreements. This suggests that PAGCOR-operated and -licensed casinos may be exempt from the ban on offshore online games.
Hontiveros questioned whether this exemption means that POGOs could continue operating in casinos such as City of Dreams Manila or Fontana Leisure Park, or in resorts with casinos on their premises.
As someone who has led two separate Senate inquiries into crimes related to POGOs, Hontiveros also highlighted the absence of any mention of the authority of special economic zones like the Cagayan Special Economic Zone and Freeport to issue permits to offshore gambling operators.
Cagayan Economic Zone Authority (CEZA) Administrator Katrina Ponce Enrile, daughter of Chief Presidential Legal Counsel Juan Ponce Enrile, had previously denied reports that CEZA allowed POGOs to operate at the freeport in Sta. Ana, Cagayan. Hontiveros clarified that “other offshore gaming licensees” refer to those authorized under their respective charters and subject to the supervision or jurisdiction of PAGCOR. However, CEZA and the Aurora Pacific Economic Zone and Freeport Authority (APEC) fall outside PAGCOR’s jurisdiction.
Malacañang, in response, issued a memorandum from Executive Secretary Lucas Bersamin instructing CEZA to comply with the President’s order. Bersamin emphasized that CEZA should immediately adhere to the directive issued during the President’s State of the Nation Address in July regarding the ban on POGOs, following applicable laws.
In late July, a week after the SONA, Enrile and her father testified at a House hearing on crimes linked to POGOs. They argued that the POGO ban should not undermine CEZA’s operations, particularly its offshore gaming licensees. Enrile defended CEZA’s authority, stating that foreign iGaming operators operating under its jurisdiction are legally compliant and prohibited from accepting bets from the Philippines or other countries where gambling is illegal. She explained that CEZA’s charter, which was principally authored by her father, grants it the authority to register offshore iGaming operators.
Only 12 of 96 registered firms in iGaming or BPO sectors
The Cagayan Freeport Zone is the only regulated interactive gaming jurisdiction in Asia, where foreign iGaming operators are licensed to offer activities such as sports betting, e-casino, and random number games. CEZA Administrator Katrina Ponce Enrile assured lawmakers that these operations do not contribute to the spread of gambling. She argued that the President’s POGO ban should not negatively affect CEZA’s business. However, she did not clarify why shutting down POGO companies would harm CEZA, particularly when its June report showed only 12 of 96 registered businesses were involved in iGaming or business process outsourcing.
Senator Risa Hontiveros warned that the ambiguities in the President’s executive order highlight the need for clearer legislation to implement a comprehensive ban on POGOs. She supported Senate bills aimed at outlawing all forms of internet-based gambling and vowed to address gaps in the executive order during legislative discussions.
EO welcomed
Senators Joel Villanueva and Sherwin Gatchalian welcomed the Executive Order (EO) as a clear sign of the government’s determination to eliminate POGOs.
Villanueva emphasized that the order supports ongoing legislative efforts in Congress. Meanwhile, both senators reiterated their commitment to advocating for the passage of Senate Bill No. 2752, the Anti-POGO Act, and Senate Bill No. 1281, the Anti-Online Gambling Act. Both bills aim to eliminate and penalize all forms of e-gambling in the country.
In addition, the Philippine National Police (PNP) announced plans to ramp up enforcement through its Task Force Skimmer, which will focus on dismantling illegal POGO operations. The PNP also called on the public to report any suspected POGO activities to help ensure the ban’s success.
