Bill banning all forms of POGO advances in House

A proposed law seeking to prohibit all forms of Philippine Offshore Gaming Operators (POGOs) and impose penalties of up to P10 million pesos to violators easily hurdled a House panel on Tuesday. 

House Committee on Games and Amusement approved the proposed Anti-Offshore Gaming Operations Act (House Bill 10987) in consolidation with three other measures all seeking to outlaw POGOs. 

If enacted, any person or entity found violating the law would face a minimum of four years in prison with a fine of P100,000 to up to P10 million. 

Foreign employees of POGOs shall be also immediately deported, while government officials found aiding illegal POGO operations would be dismissed and stripped of benefits. 

In addition, the bill shall mandate the closure of all POGO activities by the end of 2024, ensuring that involved entities settle any unpaid taxes before ending operations.

The proposed law would give more teeth to the marching orders of President Ferdinand Marcos Jr. in his State of the Nation Address in July to wind down all POGOs by the end of the year following the proliferation of illegal activities tied to the offshore industry. 

After more than three months, Marcos issued Executive Order (EO) No. 74 to formalize the immediate ban on POGOs. 

The EO follows lawmakers’ concerns that it has loopholes, such as the exclusion of online games conducted in PAGCOR-operated casinos, licensed casinos, or integrated resorts with junket agreements.

Marcos, however, contended that there is no need to pass a law because the EO itself is “sufficient.”

The Philippine Amusement and Gaming Corporation previously opposed the cessation of the POGO operations, citing the significant revenue they have generated for the country.

According to PAGCOR chairperson and chief executive officer Alejandro Tengco, licensed POGOs contributed over P5 billion in gross revenues in 2023 alone.

But lawmakers asserted that these "little economic contributions" far outweigh the social ills that POGO brought to the country.

PAGCOR regulatory officer Atty. Joseph Lobo told the panel that of the 43 POGOs or internet gaming licensees, 27 are still operating. 

"December 31 is the expiration of their winding down. But we're planning that we make a cessation order of their operation before December 31 so they can prepare for winding down," he said.

According to the Department of Labor and Employment (DOLE), 30,567 Filipino workers will be affected by the POGO ban, 27,790 of whom are direct POGO workers. 

Nevertheless, DOLE assured that it will assist the Filipino displaced workers by scouting for new employment through its job fair program.