Written by Zionel T. Bayan and Peter Wald C. Saguirel III
The introduction of the Philippine Offshore Gaming Operators (POGO) system back in 2003 which allowed for remote gambling, was considered a potential economic opportunity back then for being a key revenue stream for the country. However, what seemed like a promising venture quickly became a source of major societal and economic problems, especially under the Duterte administration in 2016.
The government may have seen its potential to boost the economy by allowing offshore gaming companies—mostly targeting foreign customers—to set up shop in the country coursing through the Philippine Amusement and Gaming Corporation (PAGCOR). The goal was to generate much-needed revenue to fund public services and create jobs. It seemed like a win-win gamble on paper.
Rapid Growth Amidst Weak Enforcement
In 2016, PAGCOR authorized POGO licensing, while allegedly regulating unlawful operations. However, PAGCOR officers and other public officials have acknowledged that regulation was overlooked because of leniency with law enforcement and a lack of coordination, resulting in increased criminal activities such as human trafficking, labor exploitation, and cybercrime. However, the issue of Alice Guo earlier this year created a more aggressive crackdown on illegal POGO operations.
PAGCOR’s inspection framework also has limitations, like language barriers which hinder strict monitoring and the lack of a cohesive system for interagency communication. PAGCOR’s limited capacity to enforce rules and keep up with rapidly growing operations meant that POGOs often operated unchecked, fueling unlawful activities and impacting local communities where they operate.
The Harsh Realities of a Promising Idea
The government’s decision to host offshore gaming companies targeted mainly at foreign markets was intended to bolster the economy by generating funds for public service and jobs for the locals. As POGOs grew, so did its issues. Communities began feeling the strain with reports of overcrowded housing, rising crime, and tension over employment and resources. The government tried to respond, even passing laws like RA 11590 to enforce tax compliance, but problems with regulation still persisted. Filipinos have become foreign in their own place.
Soon, concerns about POGOs went beyond just cyber scams. Allegations of money laundering, human trafficking, prostitution, and other crimes started to surface in connection with these offshore companies. The benefits of POGOs were now being questioned, as communities that once hoped for economic development were left wondering if the costs—strained resources, safety concerns, and disrupted lives—were worth it.
A Plea for Stronger Government Mechanisms
In the end, the POGO crisis became a story of good intentions meeting harsh realities. It led the nation to question whether the economic promise that POGOs carried justified the growing challenges they bring to Filipino society. This crisis illustrates the consequences of pursuing economic gains without adequate regulatory support.
Recently, incumbent President Ferdinand Marcos, Jr. issued a complete ban on the operation of Philippine Offshore Gaming companies in the country. Still, Filipinos are left to wonder until when they need to plead the government to address its failure in protecting its own citizens from exploitation, especially at the cost of supposed economic gains which have only been felt by a select few.
THE BARRISTER 