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IGL included in POGO ban

By Nidz Godino

“Internet gaming licenses are included in the ban,” Presidential Communications Office Secretary Cheloy Garafil said ban on Philippine offshore gaming operators (POGOs)   drew cheers when announced on Monday by President Ferdinand Marcos Jr.in his third State of the Nation Address (SONA) covers  so-called internet gaming licensees (IGLs).

Marcos capped his third SONA by ordering  halt to operation of POGOs by the end of the year, citing the need to end their “grave abuse and disrespect to our system of laws.”

According to the President,  gaming entities have ventured into “illicit areas furthest from gaming” such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder.

After Marcos’ SONA, House ways and means committee chairman and Albay 2nd district Rep. Joey Salceda expressed hope that administration would find  way to ban POGOs without affecting IGLs.

Philippine Amusement and Gaming Corp. (PAGCOR) chairman and CEO Alejandro Tengco decried  potential loss of billions of peso in revenue from POGOs but  he would comply with  President’s directive.

He said PAGCOR projects to earn this year around P7 billion from its IGLs,  new term for POGOs.

He also cited taxes collected from POGOs by  Bureau of Internal Revenue (BIR) as well as fees collected by  Department of Labor and Employment (DOLE) for work permits and by  Bureau of Immigration for alien registration certificates. He said those fees can reach up to P22 billion to P23 billion.

In  previous statement, Tengco said  ban would make it harder to monitor IGLs and would increase  number of illegal operators,  scenario that he said would “pose  bigger headache” to law enforcers. Government  would also lose potential revenues of more than P20 billion per year without any guarantee that illegal activities would stop, Tengco stressed.

Benefits can outweigh  costs of banning POGO, according to  National Economic and Development Authority (NEDA).

“POGO contributed less than one half of one percent of our GDP ,gross domestic product as of 2022…and that’s what you are likely going to lose or benefit,” NEDA

Secretary Arsenio Balisacan told reporters on sidelines of  post-SONA discussions.

He said there were losses to tourism with presence of POGOs, as China has made it clear that cross-border tourism is to be regulated for countries with POGOs that cater to Chinese individuals.

He said there were also social costs and reputational costs for hosting POGOs in the country.

“Those costs are very high…and I think that I would like to see, the President would like to see legitimate businesses, businesses that give good reputation to our country as  investment destination, as  tourist destination, not ones that encourage criminalities and related negatives,” he said.

Balisacan said workers in  POGO industry to be affected by  ban may be absorbed by  information technology-business process management sector, as these individuals already have some IT skills.

Philippine Economic Zone Authority chief Tereso Panga said that while  agency does not have any POGO locators in  ecozones, it can assist in the process of providing training and employment to displaced workers.

“If we need to upskill and reskill them, that’s the job of our agencies, particularly DOLE, CHED ,Commission on Higher Education and other agencies to provide this training as they transition to these new jobs,” Balisacan said. 

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