President Marcos has issued Executive Order (EO) No. 74, formalizing his earlier order for the immediate ban of Philippine offshore gaming operations (POGOs), internet gaming, and other offshore gaming operations in the Philippines.

In issuing the EO, signed by Executive Secretary Lucas Bersamin on Nov. 5, Marcos stressed his administration's resolve to promote national security, public safety, and public order. He first announced the unequivocal ban on POGO/internet gaming licensee (IGL) operations during his third State of the Nation Address in July this year.

EO 74 covers POGOs, IGLs, and offshore gaming operations and services exclusive and directly offered to foreign players outside the Philippines via online means such as live-streamed electronic casino (e-casino) games, online random number generator (RNG) games, and online sports betting.

The EO does not cover online games of chance conducted by casinos operated by the Philippine Amusement Gaming Corp. (Pagcor), licensed casinos, or integrated resorts with junket agreements.

Under the EO, operators may no longer apply for licenses. Those with existing ones can no longer renew and are expected to cease operations and wind up their affairs by Dec. 31, 2024.

Comprehensive Strategy

To ensure the effective implementation of the EO, President Marcos has formed technical working groups (TWGs).

The TWG on Employment Recovery and Reintegration shall address the effects of the foreign ban on the affected sectors of the economy and ensure the reintegration of displaced Filipino workers and the provision of assistance and safety nets at the soonest time possible.

This TWG shall be chaired by the Pagcor while the Department of Labor and Employment (DOLE) shall serve as the vice-chairperson. Members of this TWG are:

• Department of Finance (DOF)
• Department of Trade and Industry (DTI)
• Department of Budget and Management (DBM)
• Department of Social Welfare and Development (DSWD)
• Department of Information and Communications Technology (DICT)
• National Economic and Development Authority (NEDA)

The TWG on Anti-Illegal Offshore Gaming Operations is tasked to intensify the crackdown on illegal POGOs, IGLs, and other offshore gaming operators; facilitate the investigation of individuals involved, and ensure the prosecution of violators.

The Presidential Anti-Organized Crime Commission (PAOCC) shall chair this TWG with the Department of Justice (DOJ) as the vice-chairperson. Members include:

• Department of the Interior and Local Government (DILG)
• Philippine National Police (PNP)
• Bureau of Immigration (BI)
• National Bureau of Investigation (NBI)
• Anti-Money Laundering Council (AMLC)
• Securities and Exchange Commission (SEC)
• Cagayan Economic Zone Authority

President Marcos has directed the Department of Human Settlements and Urban Development (DHSUD) to assist the TWG on Anti-Illegal Offshore Gaming Operations in securing the cooperation of homeowners associations to ensure the non-proliferation of the banned operations and services in subdivisions, condominiums, and other real estate developments.

The Department of Tourism (DOT), on the other hand, was tasked to monitor tourism establishments and facilities to ensure they are not utilized for POGO/GL and other offshore gaming operations or services.

The ban, explained

In issuing EO 74, President Marcos said “the State has the paramount duty to safeguard national security, maintain public order, uphold the rule of law, protect the safety of its citizens, and ensure the integrity of the social fabric of the nation.”

He likewise cited the DOF study that said POGO activities significantly outweigh the economic and social benefits derived from the POGO industry because of the risks and negative consequences such as increased crime rates, social instability, and exploitation of vulnerable people associated with them.

An AMLC report also indicated POGOs have been identified as susceptible to money laundering, fraud, and other illicit financial activities, and therefore pose substantial threats to the integrity of the national financial system.

"The high reputational risks associated with POGO/IGL operations deter foreign investment and tourism, undermining the efforts of the National Government in promoting the country as a safe and sustainable investment and tourism destination," Marcos' EO read.