POGO easing to boost gov't coffers, generate more jobs – Pagcor
Published May 1, 2020 12:00 am
By Chino Leyco
The Philippine Amusement and Gaming Corp. (Pagcor) said the government stands to generate revenues from the partial resumption of offshore gaming operations as well as jobs for Filipinos amid the coronavirus pandemic.
Philippine Amusement and Gaming Corporation (MANILA BULLETIN)
In a statement, Andrea Domingo, Pagcor chair and chief executive, said the easing of the government’s restrictions on the Philippine Offshore Gaming Operators (POGOs) would soften coronavirus disease’s (COVID-19’s) recessionary impact on the country.
Domingo explained that allowing the partial re-opening of legitimate POGO businesses would unleash thousands of jobs for Filipinos and revenues for the government.
As the country’s unemployment rate is expected to reach 8 percent this year, Domingo said job creation initiatives are imperative to cushion the economic crisis triggered by COVID-19.
According to Domingo, the suspension of offshore gaming operations gripped 31,556 Filipinos working for Pagcor-accredited POGO service providers as information technology support, admin and maintenance, as well as live studio and gaming platform staff.
“POGOs employ about 31,556 Filipinos who are presently out jobs,” Domingo stressed, debunking critics’ repeated claims that the lucrative sector only employs and benefits foreign nationals.
Likewise, partial opening of POGOs will create ripples in economic activity, such as the real estate industry which has earned approximately P25 billion on leaseholds and rentals alone, as industry occupies 1,000,000 square-meter of office space.
Under partial operations, she said POGOs are only allowed 30 percent workforce per shift in operating sites and should adhere to work health and safety standards of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF).
“They will not contribute to the spread of the COVID-19 virus because we will impose strict hygiene protocols,” the Pagcor chief said, noting there should also be provision of shuttle services for employees from their places of residence to their offices.
“Even with the partial resumption of POGO operations, we will put premium on the safety of their employees, and the gaming industry as a whole,” she added.
Based on government data, there is no recorded COVID-19 case yet among the thousands of foreign nationals working for the online gaming sector.
POGO service providers need to maintain strict occupational safety, Domingo said, noting that Pagcor will impose strict physical distancing, frequent hand washing, mandatory use of face masks, and awareness on how to spot COVID-19 symptoms.
She also said Pagcor will ensure that workplaces are regularly cleaned and disinfected every eight-hours, as well as COVID-19 testing for POGO employees.
Prior to resumption of operations, POGOs and their service providers are also ordered to update and settle all tax liabilities, regulatory and license fees, performance bond or penalties due to Pagcor.
Last March 15, Pagcor suspended all POGOs and operations of their service providers for the duration of the enhanced community quarantine (ECQ) in compliance with IATF rules.
But Domingo explained the POGO suspension has deprived Pagcor, the government’s third-largest revenue generating agency, of around P300 million to P600 million revenues every month.
The Department of Finance (DOF) had earlier reported that the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) are recording their worst collection performances in history this month as Luzon, the country’s main economic engine, remains on lockdown.
According to DOF, the BIR and BOC, the two agencies ahead of Pagcor in terms of revenue contributions to state coffers, collected only P40.47 billion from April 1 to 15, down 81.5 percent from P219.88 billion in the same period last year.
Last January, DOF said total taxes generated by POGOs reached P6.42 billion in 2019 from P2.38 billion a year earlier due to better tax compliance of PAGCOR-accredited offshore gaming companies.
Meanwhile, the Accredited Service Providers Association of Pagcor (ASPAP) assured they will comply with strict guidelines issued by Malacañang, IATF, and the gaming regulator as preconditions for allowing them to resume partial operations.
These include deep cleaning and disinfection of facilities, testing of Filipino and foreign workers for COVID-19 prior to deployment, payment of workers’ salaries and taxes, remittance of the P350-million minimum guaranteed fee, proper social distancing, and other measures.
ASPAP also said its members welcomed their classification as business process outsourcing (BPO) companies.
After all, the group said its members are typical BPOs that provide POGO with BPO services like call center operations, telemarketing, systems and hardware support, as well as “live dealer” video streaming and other online games.
“To stress a point – POGOs are offshore gaming operators, while POGO service providers are typical Philippine-based BPO companies that are purely paid service fees,” ASPAP said.
While its members are awaiting Pagcor’s official communication before operating at 30 percent capacity, ASPAP said its priority is to start cleaning and disinfecting all workplaces.
In response to detractors’ claims that POGO service providers expose people to high risks of infection, the group stressed that due to strict precautionary measures adopted by ASPAP members during the pandemic’s early stages, none of its workers have tested positive for COVID-19.
Philippine Amusement and Gaming Corporation (MANILA BULLETIN)
In a statement, Andrea Domingo, Pagcor chair and chief executive, said the easing of the government’s restrictions on the Philippine Offshore Gaming Operators (POGOs) would soften coronavirus disease’s (COVID-19’s) recessionary impact on the country.
Domingo explained that allowing the partial re-opening of legitimate POGO businesses would unleash thousands of jobs for Filipinos and revenues for the government.
As the country’s unemployment rate is expected to reach 8 percent this year, Domingo said job creation initiatives are imperative to cushion the economic crisis triggered by COVID-19.
According to Domingo, the suspension of offshore gaming operations gripped 31,556 Filipinos working for Pagcor-accredited POGO service providers as information technology support, admin and maintenance, as well as live studio and gaming platform staff.
“POGOs employ about 31,556 Filipinos who are presently out jobs,” Domingo stressed, debunking critics’ repeated claims that the lucrative sector only employs and benefits foreign nationals.
Likewise, partial opening of POGOs will create ripples in economic activity, such as the real estate industry which has earned approximately P25 billion on leaseholds and rentals alone, as industry occupies 1,000,000 square-meter of office space.
Under partial operations, she said POGOs are only allowed 30 percent workforce per shift in operating sites and should adhere to work health and safety standards of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF).
“They will not contribute to the spread of the COVID-19 virus because we will impose strict hygiene protocols,” the Pagcor chief said, noting there should also be provision of shuttle services for employees from their places of residence to their offices.
“Even with the partial resumption of POGO operations, we will put premium on the safety of their employees, and the gaming industry as a whole,” she added.
Based on government data, there is no recorded COVID-19 case yet among the thousands of foreign nationals working for the online gaming sector.
POGO service providers need to maintain strict occupational safety, Domingo said, noting that Pagcor will impose strict physical distancing, frequent hand washing, mandatory use of face masks, and awareness on how to spot COVID-19 symptoms.
She also said Pagcor will ensure that workplaces are regularly cleaned and disinfected every eight-hours, as well as COVID-19 testing for POGO employees.
Prior to resumption of operations, POGOs and their service providers are also ordered to update and settle all tax liabilities, regulatory and license fees, performance bond or penalties due to Pagcor.
Last March 15, Pagcor suspended all POGOs and operations of their service providers for the duration of the enhanced community quarantine (ECQ) in compliance with IATF rules.
But Domingo explained the POGO suspension has deprived Pagcor, the government’s third-largest revenue generating agency, of around P300 million to P600 million revenues every month.
The Department of Finance (DOF) had earlier reported that the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) are recording their worst collection performances in history this month as Luzon, the country’s main economic engine, remains on lockdown.
According to DOF, the BIR and BOC, the two agencies ahead of Pagcor in terms of revenue contributions to state coffers, collected only P40.47 billion from April 1 to 15, down 81.5 percent from P219.88 billion in the same period last year.
Last January, DOF said total taxes generated by POGOs reached P6.42 billion in 2019 from P2.38 billion a year earlier due to better tax compliance of PAGCOR-accredited offshore gaming companies.
Meanwhile, the Accredited Service Providers Association of Pagcor (ASPAP) assured they will comply with strict guidelines issued by Malacañang, IATF, and the gaming regulator as preconditions for allowing them to resume partial operations.
These include deep cleaning and disinfection of facilities, testing of Filipino and foreign workers for COVID-19 prior to deployment, payment of workers’ salaries and taxes, remittance of the P350-million minimum guaranteed fee, proper social distancing, and other measures.
ASPAP also said its members welcomed their classification as business process outsourcing (BPO) companies.
After all, the group said its members are typical BPOs that provide POGO with BPO services like call center operations, telemarketing, systems and hardware support, as well as “live dealer” video streaming and other online games.
“To stress a point – POGOs are offshore gaming operators, while POGO service providers are typical Philippine-based BPO companies that are purely paid service fees,” ASPAP said.
While its members are awaiting Pagcor’s official communication before operating at 30 percent capacity, ASPAP said its priority is to start cleaning and disinfecting all workplaces.
In response to detractors’ claims that POGO service providers expose people to high risks of infection, the group stressed that due to strict precautionary measures adopted by ASPAP members during the pandemic’s early stages, none of its workers have tested positive for COVID-19.