The controversy surrounding POGOs in the Philippines

MANILA – By 15 October, foreign workers employed by offshore gambling operators, known as POGOs, will have their work visas in the Philippines revoked ahead of the Marcos administration’s total ban on this type of business.

Philippines President Ferdinand Marcos Jr has demanded the shutdown of foreign online gambling operations after weighing their supposed economic costs. This is despite the country’s gambling industry regulator, Pagcor, reporting revenues of 5 billion Philippine pesos, or US$88 million, from legitimate POGOs in 2023 alone.

The workers in question can switch from the 9G employment visa to a 60-day tourist visa while businesses work to shutter their operations by December this year, media outlet Rappler first reported.

The economic costs and benefits of the POGO industry

POGOs stand for Philippine Offshore Gaming Operators – later renamed to internet gaming licensees – which offer online casino and sports betting services. They have also been associated with online scams and workers' exploitation.

POGOs are often owned and operated by entities from China, where most gambling activity is illegal. They enlist both Filipino and foreign workers – the latter being mostly Chinese – who are reportedly housed in large complexes, away from the scrutiny of local government units and law enforcers.

In 2016, former Philippines President Rodrigo Duterte, who was known for his favourable stance towards China, relaxed rules on online gambling operations, causing POGOs to flourish during his presidency.

At their peak in 2019, licensed operators numbered over 300 and generated PhP7 billion in licensing revenue for the Philippine government, Pagcor said.

That same year, over 118,000 workers were employed in the POGO industry but only about 21,000 were Filipinos, according to the country’s Department of Labor and Employment.

In an analysis from the Department of Finance, POGOs bring PhP166.49 billion a year in economic benefits to the Philippine economy.

Yet this is outweighed by costs of PhP265.74 billion annually.

Pagcor, however, believes “the industry helps provide jobs and livelihoods,” said Vhalerie Buluran-Reyes, a senior associate at PwC Philippines, who has looked into the controversy.

Despite the economic opportunities that POGOs allegedly present, these businesses have also been linked to multiple incidents of cyber crime, as well as human trafficking and other human rights violations.

POGOs and their alleged link to criminal activities

The under-the-radar, maximum-security approach at POGO facilities has not stopped operators from allegedly tapping into their connections in the Philippine government.

In the rural town of Bamban, Tarlac in Luzon, the mayor known locally as Alice Guo – suspected of being a Chinese national posing as a Filipino – was reportedly using her influence in government and business to facilitate POGOs implicated in human trafficking.

Foreign and local workers are reportedly locked in and forced to live, work and sleep in barracks-style facilities akin to detention centres.

“Residents near POGO establishments have also expressed alarm about the establishments serving as breeding grounds for crime and human rights violations,” Buluran-Reyes said.

Exactly what type of activities take place in these complexes?

One Filipino POGO worker, who spoke to the Philippine Daily Inquirer on condition of anonymity, said: “There are various platforms. There are POGOs that specialise in love scams and cryptocurrency. These are the ones that make the news. There are also POGOs for online betting and online shopping.”

From these scams, workers allegedly earned hundreds of thousands of pesos on top of a basic salary, often ranging between 21,000 and 33,000 pesos.

In the same town run by Guo, back in March 2023, authorities raided a POGO hub and rescued some 900 people believed to be victims of human trafficking. The operation revealed a network of exploited workers, including Filipinos and nationals from China, Malaysia, Vietnam, Taiwan, Indonesia, and Rwanda.

Just over a year later, in June 2024, another raid in Porac, Pampanga led to the rescue of 186 Filipino and foreign workers from yet another POGO facility linked to human trafficking.

Apart from cyber crimes and human rights violations, “immigration violations are also a concern with foreign nationals employed by POGOs apparently illegally entering and residing in the Philippines,” Buluran-Reyes said.

“Add to these the potential national security concerns, many are now calling for a total ban of POGOs.”

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