Two dedicated-working groups

Philippines enacts total ban on offshore gaming operations, to phase out the POGO industry by end 2024

Philippines President Ferdinand Marcos Jr
2024-11-11
Reading time 2:13 min

In a sweeping policy shift, Philippines President Ferdinand Marcos Jr. has signed an executive order banning all offshore gaming operations within the country, marking a decisive end to the Philippine Offshore Gaming Operator (POGO) industry. 

The order, titled “Immediate Ban on Philippine Offshore Gaming, Internet Gaming, and Other Offshore Gaming Operations in the Philippines” and signed on November 5, requires all existing offshore gaming licenses to expire by December 31, 2024

The executive order halts applications for new licenses under the POGO and Internet Gaming Licensee (IGL) programs, preventing any renewals or extensions for current operators. All existing offshore gaming operations and auxiliary services must cease by the end of 2024, with the government establishing efforts to manage the impact on affected Filipino workers and businesses.

The new legislation follows Marcos’ announcement of the ban during his State of the Nation Address in July, positioning it as a move to address both the economic and social impacts of offshore gaming. The administration has since showcased its support for promoting a safer, more regulated gaming environment by dismantling what has become one of Asia’s largest offshore gaming sectors.

To address the economic disruption anticipated from the ban, the order creates two dedicated working groups, mobilizing a cross-section of government agencies and stakeholders. 

The first, the Working Group on Employment Recovery and Reintegration, is tasked with supporting the thousands of Filipino workers affected by the shutdown. The group will work on initiatives to reintegrate displaced employees through reskilling and upskilling programs, while also providing financial assistance and employment safety nets.

The second, the Working Group on Anti-Illegal Offshore Gaming Operations, will intensify efforts to dismantle illegal gambling networks in the country. This group is charged with investigating individuals involved in unlawful gaming activities, coordinating law enforcement responses, and pursuing the prosecution and deportation of any foreign nationals engaged in illicit operations.

The Philippine Amusement and Gaming Corporation (PAGCOR) has also been directed to expedite the collection of outstanding fees and taxes related to POGO operators. In recent warnings, the Department of Justice has cautioned international governments, including Timor-Leste, about the risks of welcoming offshore gaming operators.

The shutdown of the Philippines’ offshore gaming sector, once a major player in Asia’s digital gambling market, has already led to visa downgrades and deportations of numerous gaming workers. However, Philippine officials remain alert to the potential for operators to relocate their businesses to other jurisdictions

Last month, Philippine authorities apprehended 569 Indonesian nationals for their involvement in illegal online gambling operations. 

The Indonesians were detained during a raid at the Tourist Garden Hotel in Lapu-Lapu City, Cebu province, on August 31, 2024. The operation was carried out by Philippine law enforcement in response to an offshore gaming operator’s illegal activities.

Meanwhile, other countries are eyeing the displaced operators as a possible economic opportunity. The Isle of Man, known for its robust regulatory framework, has reportedly set aside a budget to assess the feasibility of welcoming high-performing offshore gaming businesses. A spokesperson for Digital Isle of Man acknowledged that the recent regulatory changes in the Philippines could present “a strategic opportunity for the Isle of Man” to attract reputable businesses willing to meet its strict standards.

Industry insiders predict that, despite the shutdown, the Philippines’ established reputation as a skilled location for gaming support and outsourcing could lead some operators to maintain a partial presence in the country.

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