OPINION
Advocates Philippines
The Philippine POGO Problem (Part 1)
Philippine Offshore Gaming Operations (POGO) has been regarded as a lucrative revenue stream for both the Philippine government and local authorities, especially during the pandemic. However, what was initially intended as a legitimate business catering to overseas gamblers, primarily from China, has become a breeding ground for criminal activities.
The Gambling Landscape in China:
To understand the rise of POGOs, it is crucial to consider China's strict stance on gambling. According to the Han Kun Law Offices in China, gambling is strictly prohibited in the People's Republic of China, with severe penalties for violators.
“Gambling is strictly prohibited in the People’s Republic of China (“China”, or PRC), from which ‒ solely for the purposes of the article ‒ Hong Kong, Macau and Taiwan are excluded.
In China, activities related to gambling are subject to administrative penalties and even criminal liability in serious cases. No substantial regulatory developments have occurred during the past year with regard to gambling in China.
However, the competent authorities (especially the Ministry of Public Security) have tightened enforcement over new types of gambling such as online gambling and cross-border gambling. Any type of gaming that could develop into gambling is also strictly restricted.”
The lack of legal gambling avenues for mainland Chinese citizens has prompted casino operators to seek foreign bases for their operations, leading to the establishment of POGOs in the Philippines.
Unfortunately, this has also allowed criminal syndicates to exploit the situation, using POGOs as conduits for their activities.
Crime and Corruption in POGOs:
While POGOs were initially presented as a means of livelihood and employment, they have become entangled with crime and corruption. Senator Sherwin Gatchalian's report reveals a concerning trend, with 113 POGO-related crimes reported from November 2019 to March 2023.
These crimes include human trafficking, international operations, cybercrimes, fraud, and cases of violence against women and children. Mayor Rex Gatchalian of Valenzuela City has even issued a ban in his jurisdiction, recognizing the negative impact of POGOs on local communities.
Taguig City has a similar ordinance about gambling in the City dating back in 2001 and enforced by the current administration of Mayor Lani Cayetano. It is this law that prohibits POGO from legally operating in Taguig and her husband has a strict moral and practical policy on the matter as well.
Senator Alan Peter Cayetano has also called for a complete halt to all POGO-related activities, citing their association with illegal activities such as money laundering, kidnappings, and even murder. He further emphasizes that the presence of POGOs has harmed the country's reputation in the international community, rather than benefiting the economy.
"We must put a stop to POGOs because 'yang industry na 'yan has become a breeding ground for illegal activities such as money laundering, and there have been multiple reports of kidnapping and even murder of those working in the industry," Cayetano said
"In fact, rather than benefiting the economy, the presence of POGOs has harmed the reputation of our country in the international community," he added.
These statements and data presented earlier in the year have proven to be prophetic, as a recent raid on a POGO hub in Las Piñas City led to the arrest of individuals involved in human trafficking, including foreigners working illegally in the country. Reports indicate that they comprise nationals from SouthEast Asia, Africa, and The Middle East.
Illegal POGOs meanwhile have also escalated from pure gambling to cybercrime and human rights abuses. In our next editorial in August, we will talk about the different crimes inside clandestine POGO operations and why some government officials are scrambling to protect these entities.
Resource Link:
Gaming Law 2022 by Chambers and Partners
Authors: Charles Li, Vivian He, Kaiying Wu of Han Kun Law Offices in China
https://practiceguides.chambers.com/practice-guides/gaming-law-2022/china/trends-and-developments#:~:text=Gambling%20is%20strictly%20prohibited%20in,criminal%20liability%20in%20serious%20cases.
The Gambling Landscape in China:
To understand the rise of POGOs, it is crucial to consider China's strict stance on gambling. According to the Han Kun Law Offices in China, gambling is strictly prohibited in the People's Republic of China, with severe penalties for violators.
“Gambling is strictly prohibited in the People’s Republic of China (“China”, or PRC), from which ‒ solely for the purposes of the article ‒ Hong Kong, Macau and Taiwan are excluded.
In China, activities related to gambling are subject to administrative penalties and even criminal liability in serious cases. No substantial regulatory developments have occurred during the past year with regard to gambling in China.
However, the competent authorities (especially the Ministry of Public Security) have tightened enforcement over new types of gambling such as online gambling and cross-border gambling. Any type of gaming that could develop into gambling is also strictly restricted.”
The lack of legal gambling avenues for mainland Chinese citizens has prompted casino operators to seek foreign bases for their operations, leading to the establishment of POGOs in the Philippines.
Unfortunately, this has also allowed criminal syndicates to exploit the situation, using POGOs as conduits for their activities.
Crime and Corruption in POGOs:
While POGOs were initially presented as a means of livelihood and employment, they have become entangled with crime and corruption. Senator Sherwin Gatchalian's report reveals a concerning trend, with 113 POGO-related crimes reported from November 2019 to March 2023.
These crimes include human trafficking, international operations, cybercrimes, fraud, and cases of violence against women and children. Mayor Rex Gatchalian of Valenzuela City has even issued a ban in his jurisdiction, recognizing the negative impact of POGOs on local communities.
Taguig City has a similar ordinance about gambling in the City dating back in 2001 and enforced by the current administration of Mayor Lani Cayetano. It is this law that prohibits POGO from legally operating in Taguig and her husband has a strict moral and practical policy on the matter as well.
Senator Alan Peter Cayetano has also called for a complete halt to all POGO-related activities, citing their association with illegal activities such as money laundering, kidnappings, and even murder. He further emphasizes that the presence of POGOs has harmed the country's reputation in the international community, rather than benefiting the economy.
"We must put a stop to POGOs because 'yang industry na 'yan has become a breeding ground for illegal activities such as money laundering, and there have been multiple reports of kidnapping and even murder of those working in the industry," Cayetano said
"In fact, rather than benefiting the economy, the presence of POGOs has harmed the reputation of our country in the international community," he added.
These statements and data presented earlier in the year have proven to be prophetic, as a recent raid on a POGO hub in Las Piñas City led to the arrest of individuals involved in human trafficking, including foreigners working illegally in the country. Reports indicate that they comprise nationals from SouthEast Asia, Africa, and The Middle East.
Illegal POGOs meanwhile have also escalated from pure gambling to cybercrime and human rights abuses. In our next editorial in August, we will talk about the different crimes inside clandestine POGO operations and why some government officials are scrambling to protect these entities.
Resource Link:
Gaming Law 2022 by Chambers and Partners
Authors: Charles Li, Vivian He, Kaiying Wu of Han Kun Law Offices in China
https://practiceguides.chambers.com/practice-guides/gaming-law-2022/china/trends-and-developments#:~:text=Gambling%20is%20strictly%20prohibited%20in,criminal%20liability%20in%20serious%20cases.
Jul 16, 2023
