"I told you so!"

This was Surigao del Norte 2nd district Rep. Robert Ace Barbers's reaction to all the negative reports and comments about Philippine Offshore Gaming Operators (POGOs) as of late.

“I had long held that, prior to the spread of Covid-19 virus in March 2020, that there are serious effects on the POGOs online gambling operations to our war against, money laundering, criminality, graft and corruption and illegal drugs,” Barbers said.

Barbers, long-time chairman of the House Committee on Dangerous Drugs, had denounced in a privilege speech back in November 2019 or during the previous 18th Congress that the loosely-regulated influx of a large number of Chinese tourists-turned-POGO workers in the country would only create social and security concerns.

POGOs are currently being linked to several crimes happening in the Philippines, including kidnap-for-ransom (KFR), murder, prostitution, torture, extortion, usurious loan-shark, suicide, and illegal drug trafficking.

The Mindanao solon said that as early as November 2019, the Philippine National Police (PNP) Anti-Kidnapping Group’s data indicated 31 KFR cases involving Chinese nationals from 2017 to 2019, with most of the cases occurring in the vicinity of the so-called “Entertainment City” where casinos and online gaming are located.

Very recently, it has been reported that there has been an alarming rise in cases of kidnapping, murder, torture, and extortion between and among “captive” Chinese POGO workers and their employer-handlers. Based on reports, it was alleged that “maverick” online “keyboard warriors” are either seeking higher pay and wanted to leave their current employer or are being pirated by their fellow POGO operator-competitors. Those who wanted to leave or escape are being punished extremely.

Barbers said there had been indications in the past that Chinese drug syndicates are utilizing online gambling facilities as “fronts” for their illegal trade based on police reports.

Sometime in January 2017, lawmen raided a condominium unit along Roxas Blvd., in Pasay City and arrested 25 Chinese nationals and seized two kilos of shabu. In October 2016, police arrested 40 such foreigners after a drug by-bust operation at the Multinational Corporation Center in Makati City.

Money laundering by suspected Chinese drug syndicates are allegedly being done via both gambling at local casinos or actual ‘brick and mortar’ gambling; and through the online or internet gambling.

One example of a money laundering scheme using casinos is the case of the $81 million stolen from a Bangladesh Bank account at the Federal Bank of New York in 2016. The money reached the hands of a wealthy Chinese-Filipino junket operator and loaned part of the loot to high-rollers inside the casinos’ VIP rooms at the Entertainment City.

Philippine Amusement and Gaming Corporation (PAGCOR) had justified POGOs' presence and operations by saying that such firms could generate more than P37 billion annually to finance local infrastructure and socio-civic development projects.

But reports said that this year, the government, through the Bureau of Internal Revenue (BIR), was only able to collect P3 billion from the POGO operations.

The Department of Justice (DOJ) is currently investigating the presence of some 200 POGO firms illegally operating in the country. POGOs or similar online gaming operations are strictly prohibited or banned in China.