One year after ban, offshore gaming shadow still looms in the Philippines

The Star

5 days ago

MANILA: Thousands of Chinese nationals who previously worked in now-defunct Philippine Offshore Gaming Operator (Pogo) hubs remain in the country despite President Ferdinand Marcos Jr.'s total ban on the industry a year ago.
Still, some lawmakers believe the government has learned from the 'bitter lessons' of the Pogo controversy.
'I believe so. The Pogo ban demonstrates the government's commitment to correcting the mistake of allowing Pogos into our country,' said Senator Risa Hontiveros, chair of the Senate committee on women, children, family relations and gender equality, which led the inquiry into Pogo-related crimes.
She described the nationwide ban as a 'major breakthrough.'
'Shutting down massive Pogo scam hubs is certainly an achievement, especially since these hubs were involved in scamming, trafficking and harming not only Filipinos but also thousands of other nationals,' she said.
'Our Senate hearings revealed how Pogos exploited our institutions and corrupted officials to profit from innocent people. I hope these mistakes are never forgotten,' she added.
Thousands of foreign Pogo workers have already been deported, but Hontiveros said some large operations have unfortunately reorganised into smaller, guerrilla-style scam networks.
'There were reports of improper deportation procedures. We called on the Bureau of Immigration to ensure foreign Pogo workers actually return to their countries of origin and don't go to Cambodia or Myanmar to victimise others,' she said.
As of June 2025, over 9,000 former Pogo workers remain at large in the country, according to the Presidential Anti-Organised Crime Commission (PAOCC).
Senator Sherwin Gatchalian, a longtime critic of Pogos, said the effects of the ban were becoming more evident.
'It's only been six months since the ban in 2025. Let's give it three to six months more until all Pogo remnants are gone,' he told the Inquirer in a phone interview. 'I think we're seeing 90 to 95 per cent of the remnants already gone. Their world is getting smaller.'
Gatchalian said remaining workers were likely not involved in operations.
'I saw in the news some Pogo-connected people trying to return, but they're not necessarily operating. Once they go back to China, they will be detained, so they're avoiding prosecution and hiding here,' said the chair of the Senate ways and means committee.
'Some were caught trying to sneak back using backdoors. I think it's just a matter of time before we eradicate all individuals related to Pogos.' He added there was no confirmation that these include Pogo 'big bosses.'
'These are not high-level criminals. Some were just trying to stay because they have girlfriends or babies here,' he said.
In his third State of the Nation Address last year, Marcos ordered an immediate ban on Pogos and directed the Philippine Amusement and Gaming Corp. (Pagcor) to wind down all operations by Dec. 31, 2024.
He later signed Executive Order No. 74, imposing an outright ban on offshore and internet gaming, citing national security and public order.
The EO, based on a Department of Finance study, said the risks and consequences of Pogos — such as increased crime, social instability and exploitation — outweighed their economic benefits. The Anti-Money Laundering Council had also flagged Pogos as prone to money laundering, fraud and other illicit activities, posing threats to the financial system.
Despite the EO, both Hontiveros and Gatchalian are hopeful Marcos will sign Senate Bill No. 2868, or the Anti-Pogo Act of 2025, which seeks to permanently prohibit the industry.
The House of Representatives has adopted the Senate version, which bans the establishment, operation and service provision of Pogos.
'This is the only thing missing. The EO can only do so much—it cannot go beyond the law,' said Gatchalian, the bill's principal author. 'This isn't just a law—it's the people's demand to end the Pogo menace.'
Hontiveros said the measure would ensure the prohibition survives beyond the Marcos administration.
'Whoever sits in Malacañang, it won't be easy to establish a Pogo scam hub in the country. We need this law to ensure Pogos never emerge again,' she said.
If enacted, the bill would repeal Republic Act No. 11590, which legitimised offshore gaming.
Thousands of Chinese nationals who previously worked in now-defunct Philippine Offshore Gaming Operator (Pogo) hubs remain in the country despite President Ferdinand Marcos Jr.'s total ban on the industry a year ago.
The Pogo industry began in 2003 as an unregulated service employing around 80,000 foreign workers. In August 2016, Pagcor issued rules and regulations, allowing the sector to thrive—particularly under the Duterte administration—even as it became increasingly linked to organised crime.
Congressional hearings on Pogos, prompted by raids on large complexes employing foreign nationals, revealed allegations of killings, torture, trafficking, prostitution and cyber scams.
One key case was that of former Bamban, Tarlac Mayor Alice Guo (pic), or Guo Hua Ping. A Senate inquiry found she was an incorporator of Zun Yuan Technology Inc., a Pogo firm raided for alleged human trafficking and illegal detention.
Guo's nationality was questioned, and a Manila court recently declared her 'undoubtedly a Chinese citizen,' disqualifying her from office. Fingerprint analysis proved Guo and Guo Hua Ping were the same person.
She is currently detained at Pasig City Jail, facing 62 counts of money laundering and qualified trafficking.
Once enacted, the Anti-Pogo Act would: Punish corrupt government workers who help individuals with fraudulent documents enter or leave the country.
Forfeit all Pogo-related assets to prevent reuse in illegal operations.
Create an Administrative Oversight Committee, led by PAOCC, to implement the law.
'The measure not only bans offshore gaming but also builds safeguards for our people. We shouldn't compromise public welfare for revenue from illegal and dirty businesses,' said Gatchalian.
Gatchalian said the ban helped reduce Pogo-related crimes and restored order in local communities.
'Before, there were rampant kidnappings—Chinese vs. Chinese. They were notorious for having police escorts and scaring neighbors. But now that atmosphere of fear is gone,' he said.
Hontiveros agreed.
'One year after the ban, Pogo-related crimes—scamming, trafficking, kidnapping—aren't as rampant. Big syndicates, like Guo's associates, have left,' she said. 'These are welcome developments. I trust law enforcers will continue cracking down on illegal centers.'
Gatchalian added that the Pogo crackdown contributed to the Philippines' removal from the Financial Action Task Force's gray list.
'This is another big achievement. It reaffirms our position that the country is better off without Pogos,' he said, adding that the gray list removal could boost foreign investments.
He cautioned, however, that the government must continue addressing risks and strengthening financial regulations.
The crackdown also affected the real estate market.
While Pogos triggered a boom in office and residential demand, especially in Metro Manila, the ban led to a decline in occupancy and rental rates.
Gatchalian said that's a good thing.
'I won't deny prices have gone down. But now it's back to the correct level,' he said. 'Before, rental rates were inflated because Pogo workers could pay triple what locals could afford. Now, locals and even government agencies can afford to rent again.'
'It's more fair for the economy. Prices have reached the fair level. If it goes below that, it's no longer good.'
Both senators blamed Pagcor for the rise of illegal Pogos.
'It's a conflict of interest—both operator and regulator,' said Gatchalian. 'It's the regulator's job to prevent criminal activity. But it failed.'
Hontiveros agreed.
'Pagcor poorly regulated the industry. It approved operations that became scam hubs,' she said.
She also criticised the Bureau of Immigration's Visa Upon Arrival (VUA) scheme under the Duterte administration, which led to the 'Pastillas' bribery scam.
'It allowed Pogo workers, even fugitives, to enter without proper checks. There were other schemes like fake alien employment permits. That worsened the situation.'
'I trust that PAOCC, Philippine National Police, National Bureau of Investigation and Bureau of Immigration continue working together on raids and rescues,' she said. - Philippine Daily Inquirer/ANN