Philippine Amusement and Gaming Corp. (Pagcor) Chair and CEO Alejandro Tengco is prepared to enforce a full ban on Philippine Offshore Gaming Operators (POGOs) over the next six months, as directed by President Marcos.
“If the [President] says the end of the year that gives me six months. So I suppose we have to start the process,” Tengco said in a television interview after Marcos issued the order during his third State of the Nation Address.
Countdown starts now
“We cannot just [start] this by the end of the year, mostly because there are those legal [POGOs] who are working lawfully. We need to explain this to them,” he added.
Tengco, who pushed back against a full ban because of its impact on jobs, said he will implement the President’s wishes.
“Whatever the decision of the President, I have no qualms. I will follow,” he said.
Over 30,000 jobs at risk
According to Pagcor, over 31,000 Filipino jobs were at risk in case of a full ban. During the first half of the year, the industry generated revenues (including fines and penalties) of P3.73 billion.
Marcos, during the SONA, ordered the Department of Labor and his economic team to find new jobs for the displaced workers.
“The grave abuse and disrespect to our system and laws must stop,” Marcos said.
Crackdown since 2022
Tengco played a key role in boosting industry revenues and weeding out illegal POGO operations, which flourished during the Duterte administration.
When he was appointed two years ago, there were 298 POGO licensees and service providers, but now there are only 43 licensees and 20 service providers.
Economic team backs ban
Finance Secretary Ralph Recto earlier said a recommendation for a total ban on POGOs had been sent to President Marcos.
He pointed out issues with illegal activities in Bamban, Tarlac, and Porac, Pampanga, as key concerns.
Impact sector braces for impact
A crackdown on illegal operations, taxes, and pandemic-era restrictions on Chinese workers also led an exodus of POGO operations.
"POGOs still have around 1 million square meters. With the ban/contraction this will add to the vacancy which today stands as 17-18 percent," Mikko Barranda, director for corporate leasing at Leechiu Property Consultants, told InsiderPH.
Recent data from Leechiu Property Consultants showed that although POGOs are not giving up office space, demand from new POGO tenants dropped significantly by 14.8 percent to 75,000 square meters in the first half of 2024.
This represents about 11 percent of the total demand recorded during this period.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
