Instead of boosting the Philippine economy, the recently banned offshore gaming industry exposed the country's systemic vulnerabilities, including money laundering, human trafficking, and espionage, according to the Stratbase Institute.
"The POGO (Philippine Offshore Gaming Operator) phenomenon, which initially emerged under the guise of economic stimulation, has instead revealed systemic vulnerabilities in the country," said Dindo Manhit, Stratbase Institute president.
"These include governance failures and susceptibility to transnational crimes like human trafficking, money laundering, and even espionage activities," Manhit added.
The think tank commended the government for banning POGOs and other offshore gaming operators.
President Ferdinand Marcos Jr. announced an official ban on POGO operations in July, instructing the Philippine Amusement and Gaming Corporation (Pagcor) to shut them down by the end of the year. The official revocation of licenses for the remaining POGOs in the country took effect on Sunday, Dec. 15.
In a Dec. 16 statement, the Stratbase Institute said it "fully supports the government's intensified efforts to dismantle these networks, expose the conniving behavior of authorities who prioritize personal gain over national welfare, and hold all complicit individuals accountable."
Manhit also said that the think tank "strongly condemns the pervasive harm caused by POGOs," which have become a serious problem, dampening the country's stability.
"Far from contributing to economic progress, POGOs have fostered illicit activities that threaten our sovereignty, disrupt social order, and tarnish the Philippines' reputation as a trusted investment destination," he added.
According to the think tank, POGO networks pose a national security risk, linked to Chinese espionage activities that threaten the Philippines' sovereignty and strategic position in the Indo-Pacific.
The Institute cited a recent United States Institute of Peace (USIP) study that revealed Southeast Asia has become a major hub for transnational criminal networks from China.
Alvin Camba, one of the study's authors, identified four key causes of the POGO phenomenon.
They include incentives driving various actors to participate, weak data centralizatio, poor enforcement, and a narrow development strategy
Camba suggested that POGOs were initially created to generate resources for the previous administration, with a need to disincentivize their use for political gain.
He also noted that China's strategic security interests in the Philippines contribute to the presence of POGOs in the country, stressing that POGOs near military bases and foreign institutions could be used for espionage or disinformation campaigns.