With the 3rd State of the Nation Address of the President last Monday, Pres. Marcos announced a total ban of POGOs (IGLs) in the Philippines. It has mandated agencies, especially PAGCOR, to wind down the operation until the end of the year (December 31, 2024).
Here’s what you need to know about this new development:
POGOs (Philippine Offshore Gaming Operators) have long been in operation in the Philippines, going as far back as 2003. On February 2, 2017, former Pres. Duterte signed Executive Order #13 Series of 2017.
The EO, entitled “Strengthening the Fight against Illegal Gambling and Clarifying the Jurisdiction and Authority of Concerned Agencies in the Regulation and Licensing of Gambling and Online Gaming Facilities, and for Other Purposes”, allowed the operations of the POGOs outside of the export processing zones (PEZA, etc).
This eventually resulting in boom in real estate as POGO hubs mushroomed around Metro Manila and neighboring provinces like Tarlac (Bamban POGO Hub), Pampanga (Porac POGO Hub) and Cavite (Island Cove POGO Hub in Kawit).
At its peak in 2019, it is estimated that close to 300 POCO 15 licenses were given that covers about 400,000 foreign and local employees.
By July 2023, PAGCOR canceled all POGO licenses and required all operators to register under a new name called IGL (Internet Gaming Licensee). As of today, there are only 42 remaining IGLs with an estimated 45,000 Filipino employees.
What happens now?
- The ban on POGO is equivalent to a ban on IGL (as they are one and the same).
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Pres. Marcos will need to release a new Executive Order to repeal the old EO #13 of 2017 made by former Pres. Duterte. Once this EO is in place, PAGCOR can now move to wind down the operations of the remaining 42 IGLs.
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PEZA and other export processing zones will likewise move to discontinue any POGO operations within their respective sites.
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Yesterday, Bureau of Immigration Commissioner Al Tansingco said foreign nationals who worked with POGOs and IGLs, as well as its related service providers will be given 59 days to wind down their affairs and leave the country. All work visas by these foreign nationals will be cancel thereafter. An estimated 20,000 foreign workers are affected by this order.
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POGO hubs that were caught running illegal operations will eventually be sequestered by the government and appropriated to other uses (schools or settlement houses according to DSWD)
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Legal POGO hubs will have to be rented out or sold to other entities after their closure.
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Republic Act No. 11590 or An Act Taxing POGOs will also have to be repealed by Congress.
Sources:
Official Gazette: RA 11590 28
Wiki: POGO 19
Bureau of Immigration 15
