by Lara Recuenco

Philippine Offshore Gaming Operators (POGOs) are online gambling entities based in the Philippines. Established way back in 2016 under the Philippine Amusement and Gaming Corporation (PAGCOR), POGOs were intended to boost the country’s economy. 

At their peak, they contributed significantly to government revenues and spurred growth in various sectors, such as employment and real estate. However, the said industry became associated with a vast number of crimes, including money laundering, tax evasion, kidnapping, and human trafficking, which led to increased public concern and scrutiny.

The Senate’s final hearing on November 26 aimed to address the multifaceted issues surrounding POGO operations in the Philippines. A focal point was the alleged involvement of dismissed Bamban, Tarlac Mayor Alice Guo, in illegal POGO activities, as well as her purported connections to Chinese intelligence operations. 

Furthermore, this hearing sought to uncover the extent of criminal activities linked to the industry and evaluate the effectiveness of government measures in combating these issues. The insights from this hearing were intended to inform executive and legislative actions in accordance with President Ferdinand Marcos Jr.’s issuance of Executive Order No. 74, which imposed an immediate ban on all offshore and internet gaming operations in the country.

Key Findings from Previous Senate Hearings and Investigations on POGOs

It is important to note that the proliferation of crimes linked to POGO began long before Guo brought the issue into the spotlight. This highlights the urgent need to address the problem more critically, well before it gained mainstream media attention.

Over the past several years, the Philippine Senate has already conducted multiple investigations into the operations of POGOs due to the growing concerns about their economic, social, and security implications. These investigations have revealed a pattern of irregularities and controversies tied to the industry.

In 2019, it was reported that many operators failed to pay withholding taxes for their foreign workers, amounting to billions of pesos in lost revenue for the government. PAGCOR faced criticism for lapses in enforcement, leading to calls for stricter regulatory measures. 

There were also testimonies from law enforcement agencies and victims that have highlighted cases where workers were lured under false pretenses and subsequently exploited. In 2023, the government recorded over 60 killings related to POGO operations. With that being said, the National Security Council has included POGO-related risks in its agenda, underscoring the seriousness of the issue.

All the findings from these investigations have intensified debates on the future of POGOs in the Philippines. Some policymakers advocate for the implementation of stricter regulations and enhanced tax enforcement, while others call for an outright ban on the industry. In July 2024, President Ferdinand Marcos Jr. announced a ban on all POGO operations. This call reflected the administration’s stance against the industry’s negative impacts.

Issues Addressed in the Final Hearing 

One of the central issues discussed during the Senate’s final hearing on POGOs was the case of Alice Guo. She was accused of being involved in operating an underground network that facilitated human trafficking and other illicit activities. Guo also allegedly played a key role in helping Chinese nationals enter the country illegally for POGO-related jobs.

During the hearing, Senator Risa Hontiveros presented evidence suggesting that Guo had connections to Chinese intelligence operations. Moreover, Guo’s absence from the hearing, despite being summoned, raised more suspicions and led to intense scrutiny of her involvement in these alleged criminal activities.

The Senate hearing also focused on the various criminal activities associated with the industry. Among the most troubling issues raised were kidnapping, prostitution, and human trafficking. 

Several high-profile kidnapping incidents were reported, where workers who had either run away from abusive POGO employers or sought to escape their working conditions were abducted and held for ransom. In addition, prostitution networks were said to be thriving in parallel with focus, with female workers being abused to pay off debts incurred from their recruitment and illegal employment in the Philippines. Human trafficking was also a major concern, as testimonies from victims revealed that they faced abuse and exploitation, leading to cases of forced labor and human trafficking.

Yet, it should be noted that the Philippine National Police (PNP) and the National Bureau of Investigation (NBI) discussed their efforts to dismantle the illegal operations. However, it was emphasized that the scale and complexity of these criminal networks made it extremely difficult to effectively target all of the perpetrators.

Senator Hontiveros also presented a web diagram to illustrate the complex network of individuals benefiting from POGO operations. This diagram revealed that former President Rodrigo Duterte and his former economic adviser, Michael Yang, were allegedly connected to POGP-related activities as well.

The presentation shed light on serious concerns regarding the lack of oversight and accountability in the operations of POGO. This suggests that influential individuals may have played an active role in allowing POGOs to flourish without proper regulation by turning a blind eye or even enabling the absence of proper regulations. 

This revelation sparked significant concerns about the broader implications of such connections, particularly in terms of corruption, prompting questions about how deeply such connections might affect governance and public trust. The implications extend beyond POGOs, reflecting a larger systemic issue that could hinder efforts to maintain transparency.

Government Strategies to Combat the Criminal Activities of POGOs

The Presidential Anti-Organized Crime Commission (PAOCC) has observed that large POGO companies are fragmenting into smaller groups, often rebranding as business process outsourcing (BPO) firms. PAOCC Director Winnie Quidato noted that these smaller entities are adopting more clandestine operations, resembling guerilla groups with fewer than 20 members. 

In response, the Philippine government has enacted legislative measures to address the issues. For instance, the Anti-POGO Act of 2024 proposed a ban on all POGO hubs, classifying POGO operations as predicate crimes for money laundering and human trafficking. It suggests penalties of up to 10 years imprisonment and fines of up to 10 million pesos for violators.

Additionally, the government has ramped up efforts to combat money laundering in relation to POGO operations. The Anti-Money Laundering Council (AMLC) has been more vigilant in investigating and tracing the financial transactions of POGO-related businesses. 

While these efforts are a step in the right direction, the government should do more to address the root causes that enable these operations to persist. For instance, enhancing coordination between law enforcement agencies, increasing resources for investigations, and imposing stricter penalties.

It should be recognized that as long as there is no presence of a comprehensive approach, the said measures may only push illicit activities further underground, making them harder to detect and eliminate.

The Future of POGOs in the Philippines

Looking ahead, the future of POGO operations in the Philippines remains uncertain. While the government has ordered the closure of all POGO operations, enforcement and closure of smaller networks remain a challenge. 

The fragmentation of large POGO companies into smaller, rebranded entities, such as BPO firms, allows them to operate more covertly and avoid detection. Enforcement capacity is another major hurdle, as regulatory and law enforcement agencies may lack the necessary resources and expertise. Moreover, the economic impact of a full scale closure, such as job losses and reduced income for businesses, creates further resistance to the initiative. 

To address these challenges, the government must strengthen monitoring systems, provide better resources and training for enforcement agencies, and crack down on corruption within institutions, as well as offer support to displaced workers. 

With these steps, the government can ensure that the ban on POGOs is effectively enforced and their harmful impacts are minimized.