Defense Secretary Gilberto Teodoro Jr. said rogue Philippine Offshore Gaming Operator (POGO) sites near vital military installations should be closed down, citing national security concerns.
He emphasized that the POGO sites operated by China should not be categorized as conventional POGOS, which bear a closer resemblance to business process outsourcing (BPO) centers.
“The concern is that we should stop these syndicated criminal activities operating out of our base, which weaken our financial standing, our country ratings, [and] corrupt our society,” Teodoro said, as quoted in a Department of National Defense statement on Wednesday.
The defense chief delivered the statement at the recent commemoration of Sweden’s National Day and reception honoring Swedish Defense Minister Pål Jonson.
Teodoro lamented that some POGOs, specifically those run by Chinese gangs, do not operate as intended.
“Now, I do not characterize these establishments as POGOs. These are not POGOs. POGOs, traditionally, are business process outsourcing,” he pointed out.
Teodoro said POGOs operating in the Philippines can be a gateway for criminal syndicates to escape Beijing’s ban on gambling.
“For example, there are legitimate POGOs where the bets and the payoffs are taken from other countries [such as] horse racing in Europe [and] sports betting; only the matching of bets and payouts are done here but the bets originate [from] outside [the country],” Teodoro said.
“The POGOs that we know here in the Philippines, operated to evade the ban on gambling in China, have their bets originating here. So, there’s a problem.”
Military mulling risks
AFP spokesperson Col. Francel Margareth Padilla said the military is thoroughly reviewing the potential risks posed by POGO sites near military bases.
Security expert Chester Cabalza earlier warned that China could use POGOs to stage a “surprise attack” against critical military installations.
As early as 2019, former defense chief Gen. Delfin Lorenzana opposed POGO sites near military bases, noting that Chinese workers in POGO facilities could shift their operations to spying.
He supported the idea of putting a single POGO hub away from camps. Lorenzana cited the proximity of Camp Aguinaldo and Camp Crame to the Araneta Center, Eastwood and Ortigas Center.
The discovery of purported Chinese military uniforms during a recent raid on a POGO hub in Porac, Pampanga, has heightened calls for a complete POGO ban.
On Tuesday, senators took turns calling for a stop to POGO operations.
PAGCOR airs concern
As opposition to POGOs mounts, the Philippine Amusement and Gaming Corporation (PAGCOR) cautioned against the potential ramifications of outlawing Internet Gaming Licensees (IGLs), known as POGOs.
PAGCOR chairman and CEO Alejandro Tengco said that the move could lead legitimate operators to operate covertly, evading government oversight while continuing their activities.
This, he warned, could fuel the proliferation of illegal operators, complicating efforts to combat unlawful gaming operations and posing significant challenges to law enforcement agencies.
Moreover, Tengco emphasized the substantial revenue loss for the government, estimated at over P20 billion annually, if legitimate operators were prohibited without a guarantee that illegal activities would cease.
He pointed out the likelihood of legitimate operators relocating their operations underground within the Philippines, potentially engaging in more serious criminal activities like scamming and hacking.
Highlighting the loss of control over these operators once they operate underground, Tengco underscored the importance of maintaining regulatory oversight to address issues effectively. Despite these concerns, he affirmed PAGCOR’s commitment to respecting the decision of Congress on the matter.
Tengco stressed that the fundamental issue lies with criminal syndicates posing as POGOs, as he advocated for intensified law enforcement efforts and collaboration across all sectors to tackle criminality effectively.