Senator Sherwin Gatchalian on Wednesday, November 23 said he is considering amending the Philippine Amusement and Gaming Corporation’s (PAGCOR) Charter to pave way for the creation of another agency that would be in charge of gambling operations in the Philippines

As of now, Gatchalian said it is clear that there is conflict of interest on the part of the state gaming regulator especially in regulating the operations of Philippine Offshore Gaming Operators (POGOs).

“There is really a conflict of interest on the responsibilities of PAGCOR. On one side, it is a regulator. It must be strict. But, on one hand, it is earning, so it needs to be lax,” Gatchalian told reporters in an interview after the Senate Committee on Ways and Means hearing on the economic impact of POGOs.

“We cannot expect PAGCOR to be really strict with these companies because it also wants to earn income, because they know that if they do so, they will leave. So there is really a conflict of interest inso far as the POGO is concerned,” the senator said.

“If we cannot separate the operation from regulation, we cannot solve our problem on POGOs,” he pointed out.

That is why, he said, it can be one of his recommendations when he pushes for the amendments of the PAGCOR’s Charter.

“There should be one body for regulation, another body for operations...the agency in charge of regulation will look into the third party auditors. They will investigate who are the owners, who are the operators. They will be strict as regulators,” Gatchalian said.

Possible total ban on POGOs

Gatchalian also said there is a possibility that the committee will recommend the total ban on the operations of POGOs in the Philippines.

He said almost all sectors, finance experts, economists are for total ban on POGOs due to the “reputational risks.”

Gatchalian said there is a greater risk of the country losing foreign direct investments (FDIs) since high profile crimes are associated with POGO operations.

“So talaga ang crime common sense, if a country is in chaos, no foreign investor would want to conduct business there. Yet there are FDIs that are sustainable, long -term and crime-free,” he said.

“For example, BPOs (business process outsourcing) , which has zero crime. But it has been existing for almost 20 years in our country. We want to attract the right investment,” he pointed out.

Should the recommendation be a total phase out of POGO operations, the Senate panel said it will come up with a good recommendation to help the more than 20,000 Filipino POGO workers who would be displaced in the process.

“That is our concern, it’s important to provide them with jobs especially during these times,” Gatchalian said.

Other emerging industries

For his part, Senate Majority Leader Joel Villanueva said the Philippines has a lot of options to promote various job opportunities for Filipinos and not just gambling operated by POGOs.

Villanueva said several emerging industries available for Filipinos include the booming tourism industry, micro, small and medium enterprises (MSMEs) among others.

“I sound like a broken record when it comes to gambling. I just don’t think gambling is the right way to go,” Villanueva said during the hearing.

“If we love this nation, if we love the next generation of our country, let’s inherit them with the right attitude, the importance of perseverance and diligence, the importance of education and not to depend on the game of chances,” he said.

“Gambling is not the right thing,” he stressed.