Manila - Philippine authorities have ramped up their efforts to combat illegal offshore gambling operations, many of which are run by Chinese firms. The crackdown follows growing calls to ban these activities due to their links to criminal syndicates and national security threats.

Alejandro Tengco, chairman of the Philippine Amusement and Gaming Corporation (PAGCOR), revealed that an estimated 250 to 300 offshore gambling operators are functioning without licenses, a stark contrast to the 46 legitimate gaming operators in the country.

"Together with the police, we search for these illegal operators, conduct raids, and shut them down," Tengco stated in a phone interview with Reuters.

The Philippines' online gaming industry has seen substantial growth since its inception in 2016, taking advantage of the country's liberal gaming laws to attract customers from China, where gambling is banned. At its height, the industry, known as Philippine Offshore Gambling Operators (POGOs), boasted 300 operators employing over 300,000 Chinese workers. However, the pandemic and stricter tax regulations have forced many operators to either close or operate illegally.

Recent crackdowns have been fueled by reports linking POGOs to a range of crimes, including human trafficking, torture, kidnapping, and various fraud schemes such as credit card, cryptocurrency investment, and "love scams." One notable raid in March on a POGO facility in Pampanga province resulted in the rescue of over 800 workers, including both Filipino and Chinese nationals.

Security officials have raised alarms about the broader implications of illegal POGOs. Defence Secretary Gilberto Teodoro labeled these syndicates a national security concern, warning that their activities undermine the country's financial stability and societal integrity.

"The concern is that we should stop these syndicated criminal activities operating out of our base, which weaken our financial standing, our country ratings, (and) corrupt our society," Teodoro emphasized in a statement.

While the Philippine government is projected to generate 24.5 billion pesos ($417 million) this year from POGO fees and taxes, primarily from the 46 licensed operators, PAGCOR’s Tengco indicated that the regulator would support any final decision by the government regarding the future of POGOs, which may include an outright ban on the industry.

This intensified crackdown reflects the Philippine government's broader strategy to curb illegal gambling operations and mitigate the associated criminal activities, thereby protecting national security and ensuring the integrity of its financial and social systems.