Pagcor says ban on POGOs to hurt workers, economy

Pagcor Chairman and Chief Executive Officer Alejandro Tengco

DESPITE persistent reports linking Philippine overseas gaming operators (POGOs) to crimes, the Philippine Amusement and Gaming Corp. (Pagcor) maintains that a total ban would only compound existing problems.

Those who want POGOs banned altogether say the economic benefits that the government derives from them are far outweighed by their negative effects: crimes committed by erring gaming companies that include credit card fraud, serious illegal detention and human trafficking.

The name, in fact, has such a negative connotation that Pagcor now calls them IGLs or international gaming licensees.

Pagcor says IGLs significantly contribute to the economy, including thousands of job opportunities for Filipino workers.

The number of Filipino workers hired by licensed POGOs increased from 18,150 in 2020 to 31,322 as of May 2024.

As of May 2024, Pagcor says, Filipinos topped the list of workers hired by licensed POGOs at 31,322, followed by Vietnamese, 12,315; Chinese, 7,870; Indonesians, 4,786; Malaysians, 1,716; Burmese, 1,696; Thais, 843; Taiwanese, 497; Koreans, 272; and others, 450.

Filipinos consistently topped the list of hired workers from 2021 to 2025. From 19,941 in 2021 to 24,699 the following year and 27,337 in 2023 to 31,322 during the current year.

In terms of contribution to the government, licensed POGOs paid a total of P17.678 billion. Of this amount, 5 percent was in franchise fees, 50 percent was the government share, 5 percent was the share of the Philippine Sports Commission, and the rest was income tax.

Pagcor Chairman and Chief Executive Officer Alejandro Tengco warned that a total phaseout of offshore gaming operations, including IGLs or legal POGOs, would not only hurt the economy but would also exacerbate the problem because these operators would most likely go underground, making it harder for the government to monitor them. The government would also lose more than P20 billion in revenues annually, he added.

"We have no guarantee that once we ban the legitimate operators, they will simply close shop and return to their countries of origin, where they are likely to face prosecution and jail, or worse," he said, warning that it is more likely that legitimate operators will join the ranks of illegal operators.

Meanwhile, the Association of Service Providers and POGOs (Aspap) said 23,118 Filipinos, both direct and indirect hires, would lose their jobs if POGOs are outlawed.

Aspap's membership includes 16 Pagcor-licensed POGOs and 68 service providers. It said they have more Filipino workers than all other foreigners combined.

Aspap spokesman Paul Bongco said a total ban on overseas gaming would also greatly diminish the estimated P61 billion revenues derived from POGOs in terms of taxes and fees paid to Pagcor, the Bureau of Internal Revenue, the Department of Labor and Employment (DoLE) and the Bureau of Immigration (BI).

"There are more than 23,000 Filipinos who will lose decent and well-paying jobs if the government will shut down legitimate POGOs and their service providers. What is at stake here is not only their means of livelihood but also their support for their families," Aspap said, adding that other industries like real estate would also be affected.

Labor Secretary Bienvenido Laguesma and the labor sector also pushed for the preservation of jobs and more additional employment.

Asked for his position on the proposed ban on POGOs, Laguesma did not give a categorical answer but said that, as a rule, the Labor Department is for the preservation of employment and the generation of more jobs.

Defense Secretary Gilberto Teodoro Jr. earlier said that the operations of illegal POGO hubs are far different from legitimate ones that are accredited and licensed by Pagcor, adding that the operations of the former are a national security concern.

"The concern is that we should stop these syndicated criminal activities operating out of our base, which weaken our financial standing, our country ratings, [and] corrupt our society," Teodoro told defense reporters.

"For example, there are legitimate POGOs where the bets and the payoffs are taken from other countries [such as] horse racing in Europe, [and] sports betting; only the matching of bets and payouts are done here, but the bets originate [from] outside [the country]," said Teodoro.

He pointed out, though, that it's in illegal POGOs such as those raided in Pampanga that the bets originate in the Philippines to evade the ban on gambling in China.

Albay Rep. Joey Salceda, chairman of the House Committee on Ways and Means, said that a total ban on POGOs would only cause more damage than good because it would result in billions of pesos in losses in tax revenues and an estimated P192 billion more in gross value-added loss on real estate, labor, ancillary cost and related services, as well as in other industries providing support to the offshore gaming industry.

Salceda stressed that it is illogical to phase out or ban the entire POGO industry just because of the violations committed by some illegal players.