The Philippine government formed a multi-agency task force to oversee the shutdown of 41 licensed Philippine Offshore Gaming Operations (POGOs). President Ferdinand Marcos Jr ordered a ban on POGOs in July.
The remaining POGO operators have pledged to disband and leave the country, the department of justice revealed on 19 September, according to PhilStarGlobal.
The DOJ is facilitating the closure with a task force that includes the Philippine Amusement and Gaming Corporation (Pagcor), the Presidential Anti-Organised Crime Commission and the bureau of immigration.
The department of labor and employment will help some 20,000 Filipino POGO workers find new employment. Foreign workers must make plans to return to their countries.
Beginning of the end of POGOs
During their heyday, in 2019, the number of POGOs in the Philippines peaked at more than 300. They brought in collective economic benefits of ₱P166.49bn (£2.226bn/€2.667bn/$3bn) per year, including ₱7bn in licence fees to Pagcor.
But the costs far outweighed the benefits, due to growing allegations of crime associated with the industry, including kidnapping. Department of finance secretary Ralph Recto estimated total economic costs of ₱265.74bn – a net negative of more than ₱99.52bn annually.
In addition to reputational risks for the Philippines, the social costs were “unquantifiable,” Recto added. “This includes the loss of life as well as physical and psychological harm to victims of criminal activities.” Allowing POGOs to operate “eroded institutional integrity,” he said.
The raids of POGO operations in Pampanga and Tarlac provinces were the last straw. They yielded evidence of online scams, money laundering, human trafficking and the torture of workers. The DOJ is now investigating rumours of a mass grave at the Pampanga site.
On 22 July, Marcos called for an end to all POGOs, legitimate and otherwise.
POGOs’ last chapter
In a 19 September statement, the DOJ said the 41 remaining POGOs have “expressed their intention to yield to the directive of President Marcos and completely cease operations”.
The task force will “establish a clear, organised and streamlined set of guidelines for the total prohibition of POGO operations throughout the country by the end of the year, without sacrificing the welfare of the workers who will be affected by the presidential directive,” the DOJ stated.
On 10 October, the department of labor will hold a job fair for affected local workers.
Starting 16 October 2024, all foreign-worker visas will be downgraded to tourist visas. Those individuals must leave the Philippines within 60 days “or face involuntary repatriation”.
