The Presidential Anti-Organized Crime Commission (PAOCC) has warned that Philippine offshore gaming operators (POGOs) are relocating their operations to islands such as Visayas and Mindanao in an effort to circumvent the nationwide ban.
President Ferdinand Marcos Jr. has mandated the closure of all POGO operations by the end of the year. However, reports indicate that illegal activities persist, with some operators relocating or rebranding as business process outsourcing (BPO) firms to avoid detection.
During the Senate panel’s final investigation into POGOs on Tuesday, Senator Risa Hontiveros flagged that some POGOs are now “breaking into smaller groups” to evade enforcement amid the POGO ban.
Senator Hontiveros inquired about the scale of the operations observed, specifically asking if POGOs in Parañaque are splitting into smaller groups or disguising themselves as BPOs. She questioned whether this phenomenon is limited to Metro Manila or if it has expanded to other regions such as Luzon and the Visayas.
In response, PAOCC Director Winnie Quidato confirmed that this issue extends beyond Luzon, noting that many POGO operators have relocated to areas in the Visayas and Mindanao. He highlighted that these operators are actively establishing new operations in these regions.
Quidato also observed an increase in flights from Luzon to the Visayas, with many passengers being former POGO employees. He explained that some of these individuals have rebranded by changing their company names with the Securities and Exchange Commission and are now posing as BPOs.
He concluded by stressing the importance of a coordinated approach to tackle the problem, mentioning that discussions with other agencies are planned to ensure the effective enforcement of Executive Order 74 and address the ongoing challenges in curbing illegal operations.
Spread of illegal gaming
The relocation and spread of illegal gaming after the offshore gaming ban was foreseen. Research from the International Federation of Horseracing Authorities (IFHA), as reported by AGB, revealed that the POGO ban is having far-reaching consequences, particularly in the exportation of the country’s illegal betting model to new regions.
The study’s author, James Porteous, who is the Head of Research for the IFHA Council on Anti-Illegal Betting and Related Crime, noted a critical concern: organized crime syndicates are taking their operations to new territories, presenting themselves as legitimate businesses while corrupting regulators and officials.
This trend underscores the growing and dangerous nature of illegal betting, which is not an isolated issue but part of a broader criminal network that includes human trafficking, cyber fraud, and corruption.
The research concluded that the Philippines’ decision to shut down its POGO industry has not resolved the issue but has merely pushed operators to seek more conducive environments. Porteous warns that these operators will likely migrate to jurisdictions where they already have established networks or infrastructure. Past disruptions, such as in 2016, saw the rise of illegal betting operations in countries like Laos, Cambodia, and Myanmar.
These regions have become known for cyber-scam activities and organized crime syndicates that continue to operate with little oversight.
