Biz groups call for complete phaseout of POGO
Business groups are calling for the complete phaseout of the Philippine Offshore Gaming Operators (POGOs) stating that social and reputational costs from such operation far outweigh any economic benefits.
In a joint statement, business groups Management Association of the Philippines (MAP), Makati Business Club (MBC) and Foundation for Economic Freedom (FEF) said “Government sponsorship of operations that are globally frowned upon far outweigh any economic benefits.”
For the past years, the statement cited problems of regulatory oversight resulting in monitoring and taxation issues with licensing agency, the Philippine Amusement and Gaming Corporation (PAGCOR).
“Conflicting mandates and the lure of corruption have rendered it and other involved government agencies incapable of effectively regulating POGOs. Crimes, like money laundering, kidnaping, bribery, prostitution, human and drug trafficking – all associated with the gambling industry – impact on our record of law and order, and our reputation,” the groups added.
In addition, they said, the taint of money laundering “diminishes confidence in our banking system and puts legitimate financial flows, including from OFWs, at risk from sanctions of international oversight bodies. Our connectivity to international banking, and the business and OFW communities who depend on it, must be protected.”
Since the COVID-19 pandemic, the POGO industry has significantly declined by 50 percent to 70 percent. This suggests that now is the best time to terminate their operations.
“The total ban will only result in temporary economic strains, as opposed to the enduring socio-economic consequences and heavier disruption if we do not act now,” the statement further added.
It also cited the Chinese government, which has been quite categorical in its objections to POGO, which they characterized as “harming not only China’s interest and China-Philippines relations but also hurt the interests of the Philippines.”
“We fully support the Department of Finance’s (DOF) push to phase out all POGO operations, and urge our legislators and the Executive Department to take all actions necessary to execute in an orderly way,” the statement concluded.