Philippine finance secretary wants POGO ban despite potential revenue loss
POGOs generate PHP4.4bn (US$80.1m) in revenue for the Philippine government.
The Philippines.- Finance secretary Benjamin Diokno has expressed his desire to ban Philippine offshore gaming operators (POGOs), despite potential implications for government revenue. Diokno highlighted concerns regarding reputational risks and social costs associated with the presence of POGOs. In a briefing, he stated: “Let’s get rid of POGOs. We can get revenues from lots of other sources.”
The national government has benefited financially from POGOs, with revenues amounting to PHP4.4bn (US$80.1m) in the first eight months of 2022, surpassing the PHP3.9bn collected in 2021. POGOs also played a significant role in the local real estate industry, occupying approximately 5 per cent of the country’s leasable office spaces in 2022, as reported by Colliers Philippines.
However, the industry, consisting mostly of Chinese operators due to a gambling ban in their home country, has faced scrutiny for its alleged involvement in money laundering and criminal activities. In March 2020, the Anti-Money Laundering Council raised concerns of possible links between POGO transactions and drug trafficking.
Diokno said POGOs were a potential reason why the Philippines remained on the Financial Action Task Force’s “grey list”. He also raised concerns about the social costs, citing criminality and illegal work permits. Earlier this month, senator Sherwin Gatchalian said POGOs were being used as a “legal cover” by criminal syndicates to promote fake cryptocurrency investments and run illicit operations.
He accused PAGCOR of corruption and failure to effectively monitor the entities and called again for a complete ban on the sector, which he believes has brought “international shame” to the Philippines.
