The Philippine government has announced a total ban on offshore gaming operators (POGO) in order to address security risks associated with organized crime, a move that will also impact diplomatic relations between the Philippines and China.
The Philippine government recently announced a comprehensive ban on offshore gaming operators (POGO), a decision aimed at addressing security risks associated with organized crime and responding to the Chinese government’s firm stance against cross-border gambling. President Ferdinand Marcos stated during his State of the Nation address on Monday, “From today onwards, all POGOs are prohibited.” His remarks received enthusiastic applause from lawmakers and underscored the growing concerns over the surge in this industry.
The POGO industry has rapidly developed in the Philippines since 2016, attracting a large number of Chinese gamblers and becoming a significant part of the country’s online gambling landscape. While this industry has generated billions of pesos in revenue for the Philippines, it has also been linked to numerous illegal activities, including financial fraud, money laundering, prostitution, human trafficking, kidnapping, and even murder. Marcos pointed out that POGO operations have infiltrated illegal areas unrelated to gambling, causing serious abuse and disrespect to the Philippine legal system that must be stopped immediately.
In recent years, diplomatic relations between the Philippines and China have become increasingly strained due to sovereignty issues in the South China Sea, prompting the Marcos administration to adopt a tougher stance on operations related to China. The Chinese government may welcome this ban, as gambling is prohibited in China, with Macau being the only exception. Beijing has also been intensifying its crackdown on cross-border gambling, particularly in Southeast Asia. According to the Philippines’ gaming regulatory agency, there are currently more than 40 licensed offshore gambling operators in the country, along with numerous illegal gambling centers. Marcos has ordered the closure of all these operators by the end of the year.
The rise of the POGO industry in the Philippines is closely tied to the administration of former President Rodrigo Duterte, who maintained a friendly attitude towards China and overlooked illegal activities within the industry. However, over time, more criminal activities began to be associated with this industry, leading to negative public perceptions. Philippine Ambassador to China Jaime Florcruz stated that while POGOs supported local finances and employment, the criminal activities they spawned severely damaged China’s image in the Philippines.
Florcruz further noted that, overall, the POGO ban would be beneficial for Philippine-Chinese relations. This ban provides an opportunity for the two countries to cooperate on mutually beneficial grounds, particularly in intelligence sharing and the identification and repatriation of Chinese citizens involved in crimes. Philippine authorities have been conducting increasingly stringent scrutiny of many POGOs disguised as casinos, with many operators being accused of being fraud centers.
Additionally, police recently raided an online romance scam center located about 100 kilometers north of the capital, rescuing over 800 Filipinos and individuals of other nationalities, further highlighting the complexity and dangers of the POGO industry. Reports from the Philippine News Agency also indicate that some POGOs are situated in abandoned shopping malls or repurposed parking lots, locations that are increasingly under the scrutiny of Manila authorities.
The Chinese embassy in Manila has previously stated that it has requested the Philippines to ban POGOs to “eradicate this social evil.” The embassy also added that it has assisted Philippine authorities in shutting down five offshore gambling centers and repatriating nearly 1,000 Chinese citizens over the past year. With the implementation of the ban, the future gambling market will face significant changes, and how the Philippines reshapes its relationship with China and improves domestic security will be worth watching.
