The announcement of a POGO ban in the Philippines has caused shock waves throughout the industry and beyond. A former PAGCOR employee who now works for a gaming operator shares his opinion of why the change was necessary for the country.
By: Dan Aubrey Aguilar II
The emphatic “All POGOs are banned effective today” is going to be dissected for the next few weeks. The marching orders are clear, there is an objective and a set timeline that would help the decision makers on the ground be firmly guided on what needs to be done. The presence of the PAGCOR Chairman at the plenary indicates that he had an input, a plan, and a vote of confidence to the laid-out decree.
Was POGO a case of a few bad apples rotting the whole basket? The numbers may back it up and say the regulation is effective but POGO, as a brand, has been hijacked by bad elements. It was apparent that Illegal operations were able to disguise themselves as POGOs on the outside, with some able to use legitimate licenses.
POGO is since synonymous with a tainted product. The intended regulated version of online gaming operations as a better alternative to what’s offered underground was not able to create a distinction when the illegal activities mixed in some companies who thought they could just pay taxes and be shielded from scrutiny. The recorded actual violators could be less than 10 of the almost 300 licensees, but it does not matter, as it is one too many.
This is consistent with the theme of the President’s Address to the people citing other aspects of his administration’s performance where, if it does not positively impact the average Filipino’s life (like the record production of rice against its high price), then it means that there’s still work to be done.
PAGCOR, for its part, tried to clean house last year by introducing IGLs (Internet Gaming Licensees). Implemented within the framework are stricter compliance criteria. Evident as only 43 was able to get certified out of the previous 298. It is a good testament to a regulatory body that is receptive to constantly improving itself where it could just outright recommend a stiff stance, a lazy position which no one would blame them should they have taken it.
But the performance of online gaming calls for regulation. Since the pandemic, the average person has become accustomed and comfortable to transactions lodged in the world wide web. We regulate to protect our people. The generated revenue should be a byproduct. It should not be a GDP needle mover.
And there are stable products of the online games, particularly the variants that are backed up by land-based operations. They may not contribute significantly to their revenue, but it is an investment for the future. Offline to Online (O2O) in gaming is going to be a natural migration, it is inevitable in a society as interconnected as it is today. That is why, to keep up, as we are already late, it is imperative to have a strong regulatory foundation now. This is evident with the variants that PAGCOR offer to ensure that these are properly guided by a framework that suits them.
The world took notice, the soundness of the policies was appreciated by the other industry movers. PAGCOR’s willingness to explore and adapt to what the market is demanding while carefully crafting a safe playing field is the reason why the Philippines is regarded as such.
POGO, described by the President as abusive and evil, should be gone, no excuses. And the moves to weed it out started since he stepped in. That’s why there’s a confidence in his voice as his constituents cheered on. In the next five months, we’ll get to see if PAGCOR is allowed to provide a platform that moves the industry forward or if POGO sets it back.
Dan Aubrey Aguilar II is a Compliance Director for one of the licensed gaming operators in the Philippines, having worked for PAGCOR for 18 years.
