POGOs could see a rebound following easing of Covid-19 restrictions
According to David Leechiu, president of Leechiu Property Consultants, there could be a rebound in the activity of Philippine offshore gaming operators as mobility restrictions ease.
The Philippines.- Following an exodus due to the Covid-19 pandemic and tax pressure, some expect that Philippine offshore gaming operators (POGOs) could make a return to the country.
David Leechiu, president of Leechiu Property Consultants, told local media that his company is close to signing its first major real estate deal for a POGO operator in two years. He predicts that this could be the starting point for a rebound in activity.
He said the sector could receive a boost from the announcement that the country will reopen its borders to international tourists who have been fully vaccinated against Covid-19 from February 10. The POGO industry employs a large number of expatriate workers from mainland China and Asia.
Before the Covid-19 pandemic, POGOs were a major force in Manila’s commercial real estate market, but the industry has since freed up about 500,000 square meters of space. New POGO taxes, regulatory uncertainty and a crackdown on visa regulations led to an exodus of online operators, a situation aggravated by the Covid-19 pandemic.
From September 2021, POGOs have had to pay 5 per cent tax on their gross gaming revenue. Service providers must pay a 25 per cent income tax. According to PAGCOR’s website, the number of POGO licence holders that are currently operating is just 41.
