Pogo, go or no go

Finally, a definitive answer to the collective prayers of many! The Philippine Overseas Gaming Operators (POGOs) has been in the news lately, mostly frighteningly and scandalously in a negative and unsavory light.

POGOs, which started extensive operations in the country in 2003, were granted licenses in 2016 by Pagcor and became taxable at 5 percent of gross earnings in 2021 under RA 11590.

At an estimated average of ₱3 billion per year in tax revenues, the Philippine government may have lost ₱54 billion from the untaxed operations of the POGOs for 18 years from 2003 to 2021.

As of 2024, the more than 600 POGOs, equally divided between the licensed and the illegal, have been tagged as the sources of social ills like sex work, human trafficking, kidnapping, killing, torture, scam operations, money laundering, bribery, espionage, terrorism, the recently exposed irregular issuance of Philippine passports and birth certificates to foreigners that led to the election of a Chinese citizen as mayor of one town in the north and other foreigners elected as local officials in a number of towns, and many other heinous crimes yet to be discovered.

It was reported that the legitimate POGOs contribute a measly 0.2 percent to our GDP.

It was further reported that it is difficult to distinguish the illegals from the licensed POGOs. There is a possibility the licensed POGOs have established illegal counterparts to evade taxes and paperwork.

It is therefore imperative to use the steam shovel approach and shutter the entire industry to remove the subterfuge employed by the licensed POGOs.

It is not difficult to imagine that the illegals easily escaped detection and apprehension for 20 years since 2003 as they were evidently permitted to operate under “special arrangements.”

Almost all premier business organizations, economists, government officials, religious groups and police officials have collectively called for the total closure of POGOs — legal or otherwise.

The bigger challenge, however, after the total ban is preventing a resurgence of this unwanted enterprise through a sustained, serious and relentless action by honest police officials together with the active cooperation and involvement of vigilant communities as force multipliers to ensure the total and permanent banishment of POGOs — legal or otherwise — in our country.

From the moral, legal and economic perspectives, there is urgency in closing the POGOs NOW without delay because while they contribute 0.2 percent to our GDP, the social costs we are paying are exceedingly high and we are dangerously risking the welfare of future generations.

Mixing metaphors, we need to cross the rubicon and bite the bullet NOW to show our firm resolve in saving the coming generations because a slow motion shutdown could be fatally subverted by excessive, rigid and bureaucratic redundancy.

Surely, the closure of POGOs will not eradicate the Filipinos’ gambling culture because by tradition we love betting games, like jueteng, but many Filipinos are culturally law abiding due to the harsh decrees issued by our Spanish colonial masters for 300 years.

Although POGOs may not have worsened our gambling addiction, the enterprises escalated crimes in the country to new levels of viciousness and frequency.

And on Monday, 22 July, at 5:30 p.m. President BBM ordered with emphatic conviction the total and final ban of ALL POGOS effective immediately.

With the government and society working together to mitigate the economic impact of the immediate POGOs closure, the economic dislocation can be managed at a tolerable level. This community effort could serve as a unifying event, paving the way for greater citizen involvement and cooperation in other major national undertakings. Comprehensive support programs, including retraining and job placement services, can help displaced workers transition to new employment, reducing the immediate economic shock.

President BBM rightfully deserved the applause and standing ovation at his SoNA after he ordered the final and immediate closure of POGOS which have harmed the soul of our nation.