Philippine offshore gaming operator
They are obliged to restrict any individual in the Philippines, regardless of citizenship, Filipino citizens regardless of location, and potential patrons in countries and territories where offshore gambling is illegal, from availing their services.
The bill, which was supported by 17 senators—Pia Cayetano, Bong Go, Bong Revilla, Imee Marcos, Bato dela Rosa, Joel Villanueva, Manny Pacquiao, Cynthia Villar, Tito Sotto, Migz Zubiri, Sonny Angara, Koko Pimentel, Win Gatchalian, Ralph Recto, Grace Poe, Dick Gordon, and Nancy Binay—[9][10] was signed into law by President Duterte in September 2021.
[11] In 2003, POGO firms, mostly Chinese-backed and based in Metro Manila, began operations,[2] and abruptly increased following the start of the presidency of Rodrigo Duterte in 2016.
[4] While a significant portion of the Philippine offshore gambling industry cater to the Chinese, some serve the Korean and Vietnamese markets.
[16] In 2019, the industry rented more office space than business process outsourcing, purchasing 386,000 square meters (4,150,000 sq ft) within the first nine months, 34% of total demand.
[22] However, it noted a significantly high economic cost, at an estimated ₱265.74 billion annually, which include the effects of negative reputational risks, impacting foreign direct investments.
In early December 2019, figures from the BIR, the Department of Labor and Employment (DOLE), and PAGCOR suggested that the number ranged from at least 44 to 93 thousand.
At that time, China was enforcing a crackdown on gambling operations on its citizens and launched appeals to the Philippine government to stop POGOs.
[12][25] General Secretary of the Chinese Communist Party Xi Jinping personally repeated the plea, addressing Philippine President Rodrigo Duterte, during their bilateral meeting in Beijing on August 29.
[32] Some locals criticized the influx of Chinese and other foreigners, who were believed to be taking jobs,[19] and limiting the hiring of Filipinos,[2] as evident after raids by immigration authorities on POGO offices.
[14][31] Authorities in the Philippines faced issues in dealing with these: POGOs illegally operating overnight, a rise in undocumented workers from China, and a weak response from government agencies.
This was contributed further by the "visa upon arrival" program by the tourism department, which made it easier for the Chinese nationals to enter the Philippines, who ended up working for POGOs.
[12][2][43] It was revealed that some gambling syndicates employ Filipino policemen as protectors, as well as paying to corrupt immigration authorities and police.
In the last quarter of 2023, these firms were renamed as Internet Gaming Licensees with new rules and regulations for the industry being implemented, as PAGCOR stated that POGO "become too negative.
[45] Following President Bongbong Marcos' POGO ban in July, both the Presidential Anti-Organized Crime Commission (PAOCC) and PNP Anti-Cybercrime Group (ACG) reported a significant decrease of text scams.
The IT and Business Process Association of the Philippines later rejected the claim that POGOs, performing an "essential service", were part of their sector.
[47] Controversial[48] police officer Jovie Espenido also testified before the House Committee accusing Senator Bong Go of sourcing intelligence funds from POGOs for Rodrigo Duterte's drug war.
[52] On March 13, 2024, authorities raided the same compound, serving two search warrants issued by the Malolos, Bulacan RTC against Zun Yuan Technology Inc., and rescuing more than 600 workers.
[56] Nine of the rescued Filipinos were considered as witnesses, as there were allegations of physical abuse and torture,[57] as well as illegal activities in the POGO hub, including scams.
[59] In April, the Palace directed the Anti-Money Laundering Council (AMLC) to freeze and preserve the Zun Yuan compound and its other assets.
[64] Also in May, the Department of the Interior and Local Government (DILG) filed a complaint before the ombudsman against Guo, vice mayor Leonardo Asuncion, nine former and incumbent municipal councilors, and two other officials, in relation to her issuance of business permit to the POGO firm.
In an August 12 decision, Martires ordered the dismissal of Guo for grave misconduct, and her perpetual disqualification from public office; while the rest were convicted of conduct prejudicial to the best interest of the service.
[66] The same day, Malolos Regional Trial Court Branch 14 issued a search warrant for violation of the Anti-Trafficking in Persons Act of 2003.
[70] Meanwhile, in the Tourist Garden Hotel resort which allegedly hosting an illegal POGO hub,[71] several electronic devices used in love and financial scams,[71] as well as cash being part of proceeds from the operation, were confiscated.
[70] At least 169 foreign nationals—93 Chinese, 69 Indonesians, six Myanmarese, and a Malaysian[70][72]—which also including a minor, and a Filipino were rescued[70] and later brought to PAOCC office in Manila.
[71] In September, NBI–Central Visayas filed the complaints against sixteen of the foreigners—13 Chinese, including alleged POGO operator Zhao Shao;[72] two Indonesians; and a Myanmar national[70][72]—and a Filipino before the DOJ for qualified human trafficking,[72] a violation of RA No.
Following the rescue of two Indonesians by the police in July from their Chinese boss and his Filipina partner, the operation was immediately transferred separately in Lapu-Lapu City and another place in Mandaue; and finally to Tourist Garden Hotel.
[76] That year, the Senate committee on ways and means filed a report, which proposed the permanent ban of POGOs nationwide to prevent crimes from these companies.
In February, the games and amusements committee approved two measures authored by district representatives Bienvenido Abante and Rufus Rodriguez.
74, immediately banning all POGOs or IGLs and offshore gaming operations nationwide as well as the application and renewal of licenses, was issued by the Malacañang.
