POGOs may finally be phased out in Philippines

The political will to deal the Philippine Offshore Gambling Operators, a vibrant gambling economy, a devastating blow, may finally be on the cards. Philippine politicians have been calling for a tougher response on the sector, which many have seen as an illicit operation of gambling products and an industry that has continuously led to geopolitical tensions with neighbors, and most importantly, China.

Now, this may be changing, as the government has assessed the political risks that POGOs pose, and may choose to finally shut them all down. Senator Sherwin Gatchalian, who presides over a committee tasked with deciding the fate of POGOs, is confident that the shuttering of the industry is the best move forward for the country.

According to Gatchalian leaving the status quo intact would have deeper and more unpleasant repercussions for the country’s reputation, trade, and economic situation than an abrupt departure from the POGO sector would. Swallowing the pill now would help the Philippines to thrive later on, argues Gatchalian.

The senator’s criticism is somewhat justified. Many POGOs have been seen as hotbeds for criminals escaping the mainland and setting up illegal gambling operations that target Chinese customers, which has irked Beijing authorities for many years now, so seeing a friend in the Philippines willing to act is welcome in China as well.

While POGOs started on a solid economic footprint and a promise of prosperity, their reputation has quickly deteriorated, reminds the senator. The sector has become a breeding ground for all sorts of crime, with human trafficking, drugs, and illegal gambling tarnishing the country's reputation.

An inability to regulate or even enforce laws on POGOs has made many politicians reluctant to even try. The idea to shutter the sector altogether has not had immediate success with politicians in the Philippines, especially former President Rodrigo Duterte, who saw Chinese insistence on the matter as meddling in his domestic politics.

All of this is now likely to change, as POGOs may finally be going away. Gatchalian has reminded that between 2017 and 2023, there have been 214 Chinese and 28Philippine victims of various crimes linked to the sector and that the operators in the offshore industry were "prone" to money laundering and other financial offenses.

Yet, the economic impact of suspending POGOs cannot be turned a blind eye to. The sector is said to be contributing an estimated PHP190bn ($3.2bn) to the state every year. Gatchalian though has said that the economic contributions of the sector are overstated and that the shuttering of the sector would not impede economic growth for the country.

Image credit: Unsplash.com