Philippines to Ban Offshore Gambling: Impact and Implications

The Philippines is set to cancel licenses for offshore gambling firms following President Ferdinand Marcos Jr's directive. The move affects 42 licensed operators, employing thousands and yielding 23 billion pesos annually. The government will provide support for displaced workers while also cracking down on illegal operators.

The Philippines' gaming regulator announced on Tuesday the impending cancellation of licenses for offshore gambling firms, aligning with President Ferdinand Marcos Jr's directive. The total ban on the industry was confirmed in Marcos' State of the Nation address, mandating the shutdown of Philippine Offshore Gaming Operators (POGOs) by year's end.

'No problem in closing down POGOs because I can invoke national security and the president's order,' stated Alejandro Tengco, chairman of the Philippine Amusement and Gaming Corp (PAGCOR), in a conversation with Reuters. The sector, mainly run by Chinese companies, directly and indirectly employs approximately 40,000 Filipinos and nearly 23,000 foreign workers, according to PAGCOR data.

While the crackdown aims to prevent these firms from going underground, the government is preparing to mitigate economic losses estimated at 23 billion pesos ($400 million) annually. The finance and labor ministries plan to support displaced local workers through safety nets and training initiatives. The Presidential Anti-Organized Crime Commission affirmed that efforts would continue against illegal POGOs, associated with scams, human trafficking, and other crimes.

With the online gaming industry having boomed since 2016, leveraging the Philippines' lenient gaming laws to attract Chinese customers, the ban presents a significant shift. At its peak, the industry saw 300 firms boosting demand across real estate and transportation sectors.

(With inputs from agencies.)