Three local business groups have issued a joint statement calling for the Philippine Offshore Gaming Operators (POGO) Industry to be phased out, GMA News reports.
According to the Foundation for Economic Freedom (FEF), the Makati Business Club (MBC), and the Management Association of the Philippines (MAP), POGOs have provided little economic benefit to the Philippines while leading to a spike in crime and earning the ire of mainland China.
“We fully support the Department of Finance’s (DOF) push to phase out all POGO operations, and urge our legislators and the Executive Department to take all actions necessary to execute in an orderly way,” the statement says.
“The social and reputational costs of government sponsorship of operations that are globally frowned upon far outweigh any economic benefits.
“Conflicting mandates and the lure of corruption have rendered it and other involved government agencies incapable of effectively regulating POGOs.”
While tax revenue from POGOs has exceeded expectations so far this year – up to Php4.44 billion (US$76 million) between January and August compared with Php3.91 billion (US$67 million) through all of 2021 – it still falls well short of the Php32.1 billion (US$547 million) goal under the revised POGO bill signed into law by President Duterte in September 2021.
“The total ban will only result in temporary economic stains, as opposed to the enduring socio-economic consequences and heavier disruption if we do not act now,” the joint statement said.
“The Chinese government has been quite categorical in its objections to POGO, which they characterized as harming not only China’s interest and China-Philippines relations but also hurt the interests of the Philippines.”
Not all are in agreeance with such a ban however, with real estate services firm Leechiu Property Consultants recently claiming the Philippines would lose over Php100 billion in economic benefit should POGOs be wound down, while the Association of Service Providers and POGOs (ASAP) warned that around 23,000 Filipinos would lose their jobs.
There are currently 34 approved POGO operators in the Philippines, down from a peak of 63 in 2019.
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