Pagcor chief Al Tengco says 43 Internet Gaming Licensees employing around 40,000 Filipino workers are presumably affected by President Ferdinand Marcos Jr.'s POGO ban

MANILA, Philippines – Which gaming operators are to wind down their operations until end of the year and how many Filipino workers will have to start looking for new jobs?

Philippine Amusement Gaming Corporation (Pagcor) chief Alejandro Tengco wants clarification on this given that the state gaming regulator no longer has any Philippine offshore gaming operator (POGO) on its list. 

Was President Marcos referring to what Pagcor now calls Internet Gaming Licensees (IGLs)? 

Tengco told radio DZBB on Tuesday, July 23, that he had yet to discuss with the President his directive to Pagcor to ban POGOs, but clarified that he only has jurisdiction over gaming enterprises that are operating legally, not those underground, so he assumed the president was referring to the 43 IGLs.

“Hindi ko naman pwede i-wind down ang mga ilegal na yun e dahil ang Pagcor ay walang jurisdiction sa mga ilegal,” he said. “I suppose he was referring to yung may lisensya sa kasalukuyan.”

(I cannot wind down the illegal because I have no jurisdiction over them. So, by winding down, I suppose he’s referring to those who have licenses.)

He said the POGO ban is more a challenge to Interior and Local Government Secretary Benjamin Abalos Jr. than to Pagcor since the only act of the regulator to implement the ban is to not renew the licenses of IGLs. 

Pagcor’s Offshore Gaming Licensing Department has a list of 45 IGLs, two of which are suspended (Gambol Leisure and Amusement Inc. and Tritech Technology Corporation), for a total of 43 operating as of July 16. These are: 

Tengco said these 43 IGLs employ 31,000 Filipinos directly. Another 9,800 Filipinos are part of the special class of business process outsourcing (BPO), meaning they are not involving in gambling, but are BPOs whose clients are gaming companies in places such as the US and Europe. 

Thus, he said the total number of workers affected by Marcos’ POGO ban is around 40,000. This figure excludes workers such as drivers, security guards, messengers, and helpers who are indirectly employed by the 43 IGLs.

Tengco said he will meet with these IGLs since there has to be due process, but added they have no choice but to follow the President’s order. 

He said these IGLs have the option of putting up land-based casinos or integrated gaming resorts but these require big investments. Pagcor will license them if they choose to venture into these areas, he said.

Tengco lamented that the legal work of IGLs will now be affected by the criminal activities of illegal POGOs.

He reiterated his fear that many of the 250 POGOs he banned last year are now operating underground, adding that the challenge of shutting down POGOs now lies with law enforcers.

“Case in point yung Bamban [POGO in Tarlac] at Porac [POGO in Pampanga], wala na naman pong lisensya yung mga yan nung nakaraang taon pero nakita naman po natin na nagpatuloy sila ng hanapbuhay,” he said.

(Case in point is Bamban and the one in Porac. They had no licenses last year but we saw they continued to operate.)

“Masakit man sabihin, ang paniwala ko po, hanggang ngayon naghahanapbuhay pa rin ng ilegal at patuloy pa rin ang criminal activities. Natitiyak ko po yun na hindi na nag gagaming operation yung mga yun,” he said.

(It’s painful to say, but I believe that up to this day, the illegal POGOs are still operating and continuing their criminal activities. I am sure that they are no longer in gaming operations.)

Tengco said shutting down illegal POGOs could be done if local government units (LGUs) helped law enforcers.

“Papaano natin ngayon imomonitor? Ang kailang natin ang tulong ng LGUs, they are the ones on the ground. Sila ang makaaalam on the ground. Sila ang magsumbong at saan nagpapatuloy,” he said.

(How will we now monitor? We need the help of LGUs, they are the ones on the ground. They know what’s happening on the ground. They will be the ones to squeal and tell us where.)

Cost-benefit analysis

Meantime, Finance Secretary Ralf Recto disclosed on Tuesday the cost-benefit analysis which his department submitted to the President showing that the cost of having POGOs outweighs the revenues they bring to the country. 

Based on the study of the Department of Finance (DOF), the POGOs’ total economic benefits amounted to P166.49 billion per year, lower than the total economic cost of P265 billion yearly. This translates to a “net cost” or loss of P99.52 billion annually.

Among the economic benefits considered were: tax revenues from the Bureau of Internal Revenue (BlR); Gross Gaming Revenues from Pagcor; income from office and residential space rentals, transportation; demand from the private consumption of employees and entities; plus other indirect economic benefits.

On the other hand, the economic costs weighed were: the “undesired effects of reputational risks which have an impact on foreign direct investments”; negative impact of POGO-related crimes on the Philippines’ “attractiveness as a tourist destination”; “unquantifiable social costs” such as loss of life as well as physical and psychological harm inflicted on victims of criminal activities. – Rappler.com

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