Lawmakers in the Philippines are raising concerns about potential infiltration by China into the nation's offshore gaming industry, alleging the use of a "Trojan horse" strategy to undermine national security. The Philippine Offshore Gaming Operations (POGOs), many of which are Chinese-operated, have been associated with various criminal activities including online scams, kidnappings, torture, and even murders.
Last fall, POGOs were rebranded as Internet Gaming Licensees (IGLs) in an effort to distinguish between legal and illegal operators. Calls for a complete industry ban intensified following a small-town mayor's connection to POGO-related crimes.
During a raid on March 13, authorities freed 868 workers who were suspected victims of human trafficking from a POGO complex in Bamban, Tarlac. Nine villas, 46 vehicles, €89,025 in cash, and various equipment were also confiscated. The complex, operated by Zun Yuan Technology Inc., is situated on land partially owned by Mayor Alice Guo of Bamban.
An investigation indicated that billions of pesos had flowed into 36 bank accounts linked to Guo, with Senator Win Gatchalian noting, "A big portion of the money came from China" and was allegedly used to support the offshore operation. These accounts have since been frozen. A separate inquiry suggested that Mayor Guo and a Chinese passport holder named Guo Hua Ping may be the same person, as both share identical fingerprints.
President Ferdinand Marcos Jr commented on the situation, stating, "No one knows her. We wonder where she came from." He emphasized that an investigation is underway, in collaboration with the Bureau of Immigration, due to concerns regarding her citizenship.
Following Guo's absence from a second hearing related to the criminal case, the Philippine Senate has called for her arrest. Her lawyer stated that Guo was too stressed to attend due to experiencing "massive cyber-bullying and humiliation."
This issue unfolds against a backdrop of heightened tensions between the Philippines and China regarding territorial claims in the South China Sea. Under former President Rodrigo Duterte, diplomatic relations had improved, but there are accusations of him favoring Chinese leadership. The current administration under Marcos has taken a more pro-US approach, straining ties with China.
Senate President Pro Tempore Jinggoy Estrada expressed worry over POGO operations situated close to military and police facilities in urban areas. "Reports on some 250 others operating without licenses should prompt our concerned authorities to conduct a crackdown on these illegal entities," he urged.
General Romeo Brawner Jr, chief of staff of the armed forces, acknowledged the potential risks of POGO locations near the capital, stating they could create "a perimeter for espionage." Chester Cabalza, a security expert, characterized POGOs as a "Trojan horse that can stage a surprise attack in the Philippines."
Alejandro Tengco of the Philippine Amusement and Gaming Corporation (Pagcor) conceded that criminals have previously exploited regulatory leniency, leading to illegal operations disguising themselves as legitimate gaming entities. He noted that the agency is currently working with law enforcement to identify and eliminate bad actors. Despite a recent defense of legitimate POGOs following a series of raids, Gatchalian has called for an immediate cessation of offshore gaming operations. He remarked, "In addition to the proliferation of heinous crimes associated with POGOs, the industry has raised serious national security concerns that must be addressed promptly and with strong political will."
Defense Secretary Gilberto Teodoro echoed this sentiment, stating, "These syndicated criminal activities weaken our financial standing, our country ratings, and corrupt our society." He warned that Beijing could be backing illegal POGOs as a strategy to destabilize the country's political, economic, social, and security infrastructure, asserting that causing turmoil within an enemy's territory is an effective way to weaken them.
