Philippines: Valenzuela city bans POGOs and other gambling activities

Authorities say the measure was taken in an effort to address the social impact of gambling.

The Philippines.- Valenzuela City 1st District Councilor Ricardo Riacrr Enriquez, has passed three banning gambling. Ordinance No. 1105 explicity forbids Philippine offshore gaming operators (POGOs) from operating in Valenzuela City with fines fines ranging from PHP200,000 to PHP300,000 (US$3,600 to US$5,400) and potential imprisonment for up to one year as sanctions for breaches.

Ordinance No. 1107 expands the ban by temporarily halting the establishment, operation, and acceptance of new applications for online gambling and Small Town Lottery in the city. The moratorium will last for five years while the city reviews its zoning ordinance in relation to these activities. 

Valenzuela City mayor Weslie “Wes” Gatchalian said the temporary ban does not infringe upon the jurisdiction of the Philippine Charity Sweepstakes Office and the Philippine Amusement and Gaming Corporation (PAGCOR) at the national level.

Existing registered businesses offering bingo and online games in Valenzuela are permitted to continue their operations and can renew their business permits. These nine registered businesses contribute approximately PHP1m to the city’s revenue.

The city council also enacted Ordinance No. 1108, which aims to combat illegal gambling in the city. The ordinance prohibits any person or entity from participating, establishing, financing or maintaining any unauthorised gambling activities. 

Violators may face fines ranging from PHP1,000 to PHP5,000, and up to PHP50,000 for presidents, managers, owners, area managers, and supervisors. Violators may also be subject to imprisonment for up to one year.

Mayor Gatchalian highlighted the prevalence of gambling activities during wakes, where collected bets were often given to the deceased person’s family. To counteract this, the city provides burial assistance of at least PHP7,000 to residents.

The decision to ban POGOs and gambling activities in Valenzuela City stems from concerns about their social impact. A week ago, finance secretary Benjamin Diokno also supported a move to ban POGOs, despite potential implications for government revenue. Diokno highlighted concerns regarding reputational risks and social costs associated with the presence of POGOs but said “We can get revenues from lots of other sources.”

See also: Filipino senators urge president to ban online gambling