In the wake of Philippine President Ferdinand Marcos Jr.’s announcement of an immediate ban on Philippine Offshore Gaming Operators (POGOs), the industry’s attention is expected to shift significantly towards onshore gaming activities, according to a legal expert.
Tonet Quiogue, a partner at a Philippines-based law firm and an expert in the legal gaming space, told AGB that the Philippine Amusement and Gaming Corporation (PAGCOR) will now focus its regulatory and licensing efforts on Philippine Inland Gaming Operators (PIGOs), remote gaming licensees for inland betting, and land-based casinos.
Quiogue noted that PAGCOR has recently refined and consolidated its rules for PIGOs, aligning them with global standards observed in other highly regulated jurisdictions. This transition is expected to unlock growth potential within the onshore gaming sector.
President Ferdinand Marcos Jr. declared a ban on POGOs on Monday, July 22nd, stating that it was effective immediately, however, PAGCOR has been given until the end of the year to wind up offshore operations under its jurisdiction.
In his announcement, President Marcos emphasized that the decision was driven by concerns about criminal activities linked to offshore gaming operations. He cited several examples of illegal activities uncovered in recent months, which influenced the decision to enforce the ban.
According to data from gaming regulator PAGCOR, there are currently 43 licensed POGO firms in the country. POGOs generated PHP3.15 billion ($54.3 million) in revenue for the regulator in 2023.
“The announcement is not unexpected, as POGOs have faced increased scrutiny in recent months due to raids on illegal and unregistered businesses masquerading as POGOs to conceal other illicit activities.”
Tonet Quiogue
She noted that Marcos’s primary concern seems to be ensuring that Filipino workers and employees of POGOs are not displaced. To address this, he has instructed the Department of Labor and Employment (DOLE) to collaborate with economic managers to assist in finding new jobs for these workers before the end of the year.
As reported by AGB last month, the DOLE conducted inspections of all legally operating POGO firms in the National Capital Region (NCR) and found that approximately 22,000 Filipinos employed by legal POGOs in Metro Manila could face unemployment as a result of the ban.
More details need to be clarified
A gaming industry insider from the Philippines, who wished to remain anonymous, told AGB that many details still need to be clarified in the near future, including the scope of the ban. According to Marcos, the ban appears to affect only POGOs.
POGO, a type of license rebranded as Internet Gaming Licensees (IGLs), allows operators to run online gaming platforms in the Philippines targeting players outside the country. However, the insider noted that some land-based casinos still operate “video streaming games” for foreign players. This kind of operation is not under the POGO license.
In this context, both the industry and the public must await further clarification on the real scope of the ban.
Regarding Marcos’s announcement, the expert highlighted that concluding his State of the Nation Address (SONA) with the news about POGO was likely a strategic move to “appease constituents”.
Additionally, the presence of PAGCOR Chairman Alejandro Tengco during the announcement suggests he was consulted and plays an active role in managing the situation. The official was even seen laughing and clapping during the announcement of the POGO ban.
When questioned about the specifics of the new ban, Daniel Cecilio, Senior Vice President at PAGCOR, indicated that many questions still remain.
In comments to AGB, the official noted that “I cannot confirm at this time what the exact details of the directives arising from the SONA (State of the Nation Address) will be. What is clear so far is that the IGLs are given until the end of this year to wrap up their operations (sunset provision).”
In addition, aside from the question over PIGOs, who operate onshore gaming operations targeted at local customers, there are serious questions over what happens to other non-PAGCOR jurisdictions – such as the Philippines’ first offshore gaming hub: Cagayan.
The Cagayan Economic Zone Authority (CEZA) acts as its own regulator and, in its own words, notes that it has ‘the power to license Interactive Gaming and Landbased Gaming activities without needing to secure prior license or approval from PAGCOR’.
PAGCOR’s Daniel Cecilio notes that this is a key sticking point to be discussed following the President’s address, stating “What is not being confirmed at this time (and I believe is an important question) is the status of Offshore Gaming located in the various economic zones (eg CEZA), which PAGCOR has no jurisdiction (over)”.
