Manila [Philippines], July 23 : The Philippines has taken decisive action to ban Philippines Offshore Gaming Operators (POGOs), a move primarily aimed at an industry catering predominantly to Chinese gamblers and marred by concerns of links to organised crime, CNN reported.
President Ferdinand Marcos Jr announced the sweeping measure in his recent state of the nation address, eliciting a standing ovation from lawmakers and signalling a significant shift in the country's stance towards the offshore casino sector.
"Effective today, all POGOs are banned," Marcos said, underscoring mounting apprehensions within the Philippines regarding the proliferation of offshore casinos. He condemned these operations for purportedly expanding into illicit activities beyond gaming, such as financial scams, money laundering, prostitution, human trafficking, and even violent crimes like kidnapping and murder.
"Disguising as legitimate entities, their operations have ventured into illicit areas furthest from gaming, such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture - even murder. The grave abuse and disrespect to our system of laws must stop," Marcos added.
The ban comes amidst escalating diplomatic tensions between Manila and Beijing over territorial disputes in the South China Sea. Although gambling is strictly prohibited in mainland China, with Macao being the notable exception, Beijing has intensified efforts to curb cross-border gambling activities, particularly in Southeast Asia.
According to Philippine gaming regulators, there are currently 46 licenced offshore gaming operators, with numerous illicit establishments operating alongside them. Marcos has mandated the closure of all POGOs by the end of the year, signalling a swift end to an industry that gained prominence under his predecessor, Rodrigo Duterte, known for his accommodating stance towards China, as reported by CNN.
Initially introduced in 2016, POGOs quickly flourished in the Philippines, contributing significantly to the country's economy while attracting tens of thousands of Chinese nationals seeking online gambling opportunities. Critics have long accused the industry of turning a blind eye to illegal activities in exchange for substantial financial gains, highlighting concerns over its impact on law and order.
In recent years, Southeast Asia has witnessed a surge in online scam syndicates exploiting loopholes in gambling regulations to perpetrate fraud schemes targeting victims worldwide, including in China and the United States. The coronavirus pandemic exacerbated these issues, prompting illicit casinos to pivot towards online scams as physical borders closed and traditional gambling avenues became restricted.
Many of those employed within these illicit operations are reportedly victims of human trafficking, with POGO hubs often situated in clandestine locations such as abandoned malls, converted parking lots, or nondescript rented offices. Authorities in Manila have intensified their scrutiny of these establishments, alleging that many serve as fronts for criminal activities ranging from fraud to cybercrime.
Earlier this year, a joint operation led to the rescue of over 800 individuals, including Filipinos and Chinese nationals, from an online scam centre posing as a casino north of Manila. The Chinese embassy in the Philippines has supported local efforts to dismantle such operations, facilitating the closure of several offshore gambling centres and repatriating nearly 1,000 Chinese citizens involved in illicit activities.
China's stance on gambling abroad remains staunch, with its embassy in Singapore cautioning Chinese citizens against engaging in cross-border betting and emphasising that such actions violate Chinese laws even if overseas casinos are legally operational, CNN reported.
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