Without unbundling the rationale behind Senate Resolution 225, 227, and 229, there is an 11-page commentary on the "Net benefits of Philippine Offshore Gaming Operators" issued recently by a state think-tank. A cursory reading reveals interesting observations.

To the point, it raised three critical hurdles for POGOs, simplistically postulated, viz.:

One, unlike foreign direct investment, POGOs do not bring in: a) transfer of technology; b) development of human capital; c) development of institutions;

Two, POGO-related investment is inherently unstable (i.e., abrupt pullout of capital);

Three, the fallout from capital reversal is more painful once the economy becomes reliant on the contributions of the sector.

If the authors reflect the official view of the Philippine Institute for Development Studies, the think tank is inclined to "curtail POGO operations" while it is less costly to do so. Alternatively, so goes its argument, the economy could attract more desirable and durable forms of investment.

Conversely, if POGOs are allowed to continue, fundamental reforms ought to be introduced, namely:  Stronger law enforcement or immigration controls; reconcile POGOs and foreign policy; address regulatory loopholes and governance gaps; develop the capacity to regulate the online industry.

Admittedly, the think tank felt the need to precisely quantify the financial benefits and social costs, stressing as it did that the "reported social costs outnumber reported economic gains." It's far less inclined to promote or expand the sector under risk of "abrupt reversal of capital on top of social and governance risks."

Given such vulnerabilities, it argues that these would make investments less attractive to investors, if not even "drive away good businesses that provide better jobs." However, these claims are not sufficiently supported by evidence-based data navigated beyond newspaper sources.

In a six-page Appendix, the article tabulated a two-column "benefit-cost matrix." An increase or decrease in POGO collections in any given year corresponds to either higher or lower Bureau of Internal Revenue collections, percentage-wise.