Recent hearings in the Philippines' House of Representatives have intensified calls for a POGO ban, taking the debate to a new level. However, a gaming industry lawyer believes the focus should be on enforcing existing laws rather than pursuing closures, citing the contribution POGOs make to the country’s economy.

Tonet Quiogue, a partner at a Philippine law firm and an expert in the field of legal gaming, pointed out in an interview with AGB that the House of Representatives’ call to ban POGO (now IGL) is rooted in Article 2, Section 5 of the Constitution, which states that “ The preservation of peace and order, the protection of life, liberty and property, and the promotion of the general welfare are essential to the people enjoying the blessings of democracy.

Tonet argued that Philippine Amusement and Gaming Corporation (PAGCOR) Chairman Alejandro H. Tengco was able to provide facts showing how their efforts in enforcing stricter regulations on IGL resulted in Those operating and operating illegally leave or close.

Tonet recalled: "The focus should be on the enforcement of existing laws, rather than closure, because IGL contributes to the economy."

According to information provided by Tengco, in 2023, the government earned PHP 520 million (USD 930,000) from POGOs. IGL's closure will adversely affect 25,000 Filipino employees, 625,000 square meters of leased commercial office space (excluding leased residential properties), and thousands of restaurants in major cities in Metro Manila and provinces.

While demand for office space from POGOs has not yet reached 2019 levels, POGOs occupied 656,000 square meters of office space in Metro Manila in the first half of 2023, according to data from property management consultancy Colliers International Philippines. , accounting for about 5% of the total supply of office buildings. The remaining 50% of POGO's footprint is in the Bay Area.

During the peak POGO demand period in 2019, the industry occupied an estimated 1.3 million square meters of office space, accounting for 11% of the total office supply in Metro Manila.

POGO changed its name last year

Philippine gaming regulator PAGCOR implemented a revised offshore gaming regulatory framework last August, renaming Philippine Offshore Gaming Operations (POGOs) as Internet Gaming Licenses (IGLs).

In addition to strengthening due diligence and compliance processes for new applications, the move also creates business entry barriers under IGL regulations to prevent suspect entities from obtaining licenses. IGL also has higher capital requirements.

In a previous interview with AGB, Tonet mentioned that some members of the Philippine Congress have continued to put pressure on the abolition of online gambling companies, and many government officials, including the Ministry of Finance and the National Economic and Development Authority, have also expressed support.

PAGCOR’s intentions are clear: they aim to properly regulate the IGL sector and exercise more supervisory and supervisory powers over licensees. “The fact that PAGCOR has unilaterally ‘suspended’ all POGO licensees and asked them to reapply under the new IGL regulations after a rigorous process shows how serious it is about cleaning up the online gambling space.”

These changes are not just on the regulatory and licensing fronts. In addition to strengthening due diligence and compliance processes for new applications, IGL regulations also create business entry barriers to prevent questionable entities from obtaining licenses.

Currently, IGL requires higher capital. Each IGL property cannot exceed 25,000 square meters of space. Additionally, a license is required for each property and is only valid for two years. PAGCOR has also stepped up its regulatory role by requiring surveillance cameras, surprise inspections and other surveillance programs.

House committee approves two measures on POGO ban

On February 12, the House Gaming and Entertainment Committee, led by Cavite District 6 Representative Antonio Ferrer, approved two important proposals. House Bill 5082 seeks to address the growing problem associated with POGOs, while House Resolution 1197 calls for greater oversight and regulation. Notably, the latter was proposed by Cagayan de Oro City District 2 Representative Rufus Rodriguez, pushing for a total ban on POGOs.

Representative Rodriguez highlighted various concerns related to POGOs. Although these gambling establishments make significant financial contributions to the country, they are reported to engage in illegal activities such as money laundering, illegal immigration, and labor violations.

In addition, POGOs have been linked to numerous kidnappings and other violent crimes. In the first six months of 2023, the Philippine National Police recorded four POGO-related criminal incidents with a total of 4,039 victims.

PAGCOR opposes the idea of a blanket ban. PAGCOR President Alejandro Tengco believes that the current POGOs are in stark contrast to their predecessors under the previous government. Tengco assured the committee that the reforms implemented have yielded good results, successfully combating criminal and illegal activities highlighted by Rep. Rodriguez.

Although a House panel approved two measures aimed at banning POGOs, industry attorney Tonette explained that "any bill passed by the House (to ban POGOs) would still need to go through the Senate and then be approved by the president."