Philippines Launches Crackdown on Illegal Offshore Gambling Firms
- tech360.tv
- Jun 14, 2024
- 2 min read
Philippine authorities have initiated a crackdown on illicit offshore gaming businesses, notably those owned by Chinese companies. Around 250 to 300 offshore gambling enterprises operate without a licence in the Philippines, which is six times the number of licenced gaming operators. The raid was spurred by reports of POGO-related crimes, such as human trafficking and fraudulent activity.
The crackdown comes as suspicions increase about possible linkages between these activities and criminal syndicates. According to the country's gaming regulator, between 250 to 300 offshore gambling enterprises operate without a licence, which is six times greater than the number of licenced gaming operators in the country.
Alejandro Tengco, Chairman of the Philippine Amusement and Gaming Corp (PAGCOR), stated in a phone interview with Reuters that they are working in collaboration with the police to locate and shut down these illegal operators. Tengco emphasised the seriousness of the situation and the need to take immediate action.
The Philippines' online gaming sector grew in 2016, taking advantage of the country's lax gaming rules to seek customers in China, where gambling is forbidden. At its peak, there were 300 Philippine offshore gambling operations (POGOs), which employed over 300,000 Chinese labourers. However, the epidemic and harsher tax rules have driven many of these operators to relocate or go underground.
The crackdown was prompted by reports of various crimes associated with POGOs, including human trafficking, torture, kidnapping, and fraudulent activities such as credit card scams, cryptocurrency investment scams, and "love scams," in which criminals assume false online identities to dupe victims into giving them money. More than 800 workers were rescued during a recent raid on a POGO facility in Pampanga province, including Filipino and Chinese nationals.
Security officials have raised severe concerns about unlawful POGOs, with Defence Secretary Gilberto Teodoro noting that criminal syndicates masquerading as POGOs represent a national security threat. The National Security Council has also stated that these illicit operations must not be condoned since they damage the country's financial stability and corrupt society.
Chairman Tengco of PAGCOR has stated that the gaming regulator will follow the government's final judgement on POGOs, which may include a complete ban on the business. It's worth mentioning that the government expects to collect 24.5 billion pesos (US$417 million) in POGO fees and taxes this year from 46 licenced POGOs, half of which are Chinese enterprises.
Philippine authorities have launched a crackdown on illegal offshore gambling operators, particularly those run by Chinese firms.
Around 250 to 300 offshore gambling firms are operating without a license in the Philippines, six times more than the legitimate gaming operators.
The crackdown was prompted by reports of POGO-related crimes, including human trafficking and fraudulent activities.
Source: REUTERS
