PAGCOR cancels CGC accreditation for criminal activities

POGOs remain under scrutiny.
POGOs remain under scrutiny.

PAGCOR has cancelled the accreditation of the POGO service provider.

The Philipines.- The Philippine Amusement and Gaming Corporation (PAGCOR) has cancelled the accreditation of CGC Technologies (CGC), an offshore gaming customer relations service provider. 

According to a press release issued by PAGCOR, the decision was made following investigations that revealed the company’s involvement in criminal activities in violation of accreditation conditions. CGC was operating under Oriental Game Limited, an offshore gaming licensee.

PAGCOR’s cancellation order includes the immediate privation of CGC’s Performance Bond. Additionally, Oriental Game Limited, as the licensee, has been fined $350,000 for failing to ensure the legitimate conduct of CGC’s business.

PAGCOR chairman and CEO Alejandro Tengco reiterated the importance of compliance with Philippine laws for offshore gaming licensees and service providers. He warned that those with cancelled accreditations and licences must cease operations immediately, as continued activity would be deemed illegal.

He said: “PAGCOR strongly advocates responsible gaming to curb all forms of social ills being linked to gaming. This is the reason why we continue to forge close partnerships with other government agencies. 

“Through proper regulation and cooperation with our law enforcement agencies, we will continue to ensure that revenues from regulated gaming will be used for more worthy causes, especially nation-building,” 

Prior to the cancellation, CGC had already been served a suspension order following an inter-agency search operation on May 4, 2023. The company faced allegations of credit card fraud, serious illegal detention, and human trafficking activities. 

The operation revealed that CGC was operating six buildings at the Sun Valley Business Hub in Mabalacat, Pampanga, despite having accreditation for only two. The hub employed people of various nationalities, including Indonesians, Vietnamese, Nepalese, Bhutanese, and Chinese.

A week ago, Senator Sherwin T. Gatchalian called for a senate inquiry into the potential involvement of the online gaming industry in human trafficking. It came after an operation to rescue over 1,000 people from the Clark Sun Valley Hub in the Clark Freeport Zone. Those rescued included people of various nationalities, including from Vietnam, China Indonesia and Nepal.

Proposing Senate Resolution No. 611 Gatchalian cited data from the National Bureau of Investigation that says that 65 out of 113 POGO-related cases investigated between 2017 and March 2023 involved human trafficking.

Gatchalian, who has been fighting for a ban on Philippine offshore gaming operators (POGOs) said: “These syndicates could be fronting as POGO operators but are actually engaged in criminal activities such as human trafficking and scamming.”

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