Senators on Tuesday, July 9 welcomed Department of Finance (DOF) Secretary Ralph Recto’s plan to recommend to President Marcos a total ban on the operations of Philippine Offshore Gaming Operators (POGOs) in the country.
Senate President Francis “Chiz” Escudero noted that the legalization of the POGO industry was done through an executive order.
“I welcome Sec. Recto’s review of POGOs.The legalization of POGO is not by law but by executive fiat thru PAGCOR (Philippine Amusement Gaming Corp.),” Escudero said.
“As I have been saying, it is up to the Executive Branch if they will continue to allow it or not since it was not allowed by a law to begin with,” the Senate leader stressed.
Sen. Grace Poe also said the Finance Secretary’s recommendation to stop POGO operations only proves that the supposed “revenue contribution” of the said industry to Philippine economy “is not worth it and not enough to justify their continued presence in the country.”
“The reported 0.2 percent contribution of the sector to our gross domestic product (GDP) is negligible in light of the social costs that the government has been shouldering since we allowed it in our shores,” Poe said.
“The figures don't lie. Even at its peak in 2019, POGOs were only able to contribute 0.7 percent to the GDP,” she said.
Poe also noted that even the former DOF regime pinpointed that the social ills associated with POGOs are opening up to high reputational risks which can severely affect the country’s efforts in attracting foreign direct investments (FDIs).
“We tried regulating but our experience shows that POGO is not one that can be regulated. Gradual phase out also proved to be a laughable approach as recent raids prove that it only got worse,” Poe observed.
“Maybe it's time to trust the economists and rely on the numbers. It is time to drop POGOs and attract the right investors in the country,” she suggested.
Senate Minority Leader Aquilino “Koko” Pimentel said he supports the entire idea saying it is “time to declare all POGO activities illegal” so that “no cover, whatsoever, can be used.”
Pimentel noted how these POGOs are able to secure licenses and permits, and then conduct illegal activities under the cover of the license/permit “simultaneously with some little legal activities just for show.”
“Some secure licenses/permits and then allow them to lapse and yet continue with operations—this time most likely illegal (in the sense of criminal) ones—still taking advantage of the fact that once upon a time they had licenses/permits,” the minority leader said.
“Some really don’t have licenses/permits from the very start but got their foreign managers and workers from authorized POGOs,” he added.
Hence, Pimentel said the entire system which allows POGOs has become the problem because the system “has been gamed”.
“Loopholes have been taken advantage of. The regulators at various levels have been penetrated and ‘compromised,” he emphasized.