Will the Philippines ban offshore gambling operators amid 'political risks' with Chinese customers?
A government panel studying the socio-economic impact of Philippine offshore gambling operators (Pogos) has recommended an outright ban on the sector, citing "political risks" involving Chinese gamblers.
Senator Sherwin Gatchalian, who headed the committee, said Filipinos stand to lose more than they will gain from the online gaming industry as most bettors were Chinese nationals.
"In essence, Chinese nationals are using offshore gaming operations based in the Philippines as a loophole to circumvent Chinese criminal law," Gatchalian said on Wednesday after presenting the commission's findings to the Senate.
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The once-thriving sector was a magnet for customers in China, where gambling is banned. The business has also been blamed for a wave of Pogo-related crimes, prompting Manila to launch a blitz of enforcement actions following repeated warnings from Beijing.
According to police data, Gatchalian said about 102 Pogo-linked crimes, including kidnapping and human trafficking, were reported between 2017 and 2023.
He added the victims included 214 Chinese nationals and 28 Filipinos.
The senator also pointed out that online gaming operators are "highly prone" to money laundering and evaded taxes by under-reporting their revenue.
He said letting Pogos to continue their business would undermine investor confidence and hurt the Philippines' economy.
"Their continuing operations in our country pose a reputational risk that could dissuade foreign firms from investing in the Philippines and discourage foreign tourists from visiting our shores," the Philippine Inquirer quoted him as saying.
Pogos, which employ about 201,000 Chinese and 111,000 Filipinos, deliver 190 billion pesos (US$3.2 billion) to the economy each year, according to real estate consultancy Leechiu's data.
Gatchalian called the industry's economic contributions as "overrated" and outlawing it will not impact growth even if the government had to give up tax revenues.
"The costs of Pogos outweigh the benefits and banning them may result in a net positive for our economy when taking into effect the potential benefits of improved investor and tourist confidence," he said.
He urged the government to devise alternative employment plans for Filipino Pogo workers and revoke the visas issued to foreign hires.
The Philippines in October began deporting hundreds of Chinese workers as part of its crackdown on Pogos.
Last year, a Chinese-Filipino association representing victims of Pogo-related crimes backed the plan to ban the trade.
"If we have to weigh the social ills that Pogos brought to our country versus the income they generate, we should choose national security," said Ka Kuen Chua, the group's leader.
This article originally appeared on the South China Morning Post (SCMP).
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