Philippines Internet Gaming Operators in Focus Following POGO Ousting
Philippines Internet Gaming Operators (PIGOs) have come under scrutiny a year after the government banned the $3 billion offshore gaming market.
A year ago this month, the Philippines government rescinded all Philippines Offshore Gaming Operator (POGO) licenses. POGOs operated online casino games for players in other countries where internet gambling isn’t allowed, specifically, China.
After years of calls from China to dissolve the offshore market, Philippines President Bongbong Marcos adhered to the People’s Republic’s wishes. Marcos’ predecessor, Rodrigo Duterte, had refused to restrict POGOs, as the online gaming operations provided the government with too big a tax benefit.
The Philippines is also home to online casinos reserved for domestic players. Philippines-based Bloomberry Resorts Corporation, which owns and operates Solaire Casinos in Manila and Quezon City, as well as Jeju Sun Hotel Casino in South Korea, holds one of the PIGO licenses. DigiPlus Interactive Corp, also a Filipino firm, does, too.
Shares of the companies tumbled during Thursday trading after Sen. Win Gatchalian filed a bill to outlaw online gambling and rescind the PIGO permits.
Many families have had their futures destroyed because of online gambling,” Gatchalian declared.
“Due to its accessibility, online gambling activities have magnified the dangers from gambling and have been linked to the erosion of our moral fibers, as it has caused an increase in mental health problems, financial problems, addictive behavior, vices, and crime rates,” Gatchalian added.
Consumer Concerns
Gatchalian said gambling addiction rates among Filipinos continue to worsen, and the ease of access to PIGOs is only aggravating matters. Shares of DigiPlus crashed 30% on Thursday, while Bloomberry shares slid as much as 12%.
“There is a legislative push to either heavily regulate or outright ban online gambling platforms,” Toby Allan Arce, an analyst at Globalinks Securities, told Bloomberg. “The political momentum behind this bill has likely led institutional and retail investors alike to rotate out of these equities until there’s more clarity or a legislative compromise.”
Along with certain lawmakers, religious interests have long cited online gambling as a drain on society. Cardinal Pablo Virgilio David scolded celebrities for endorsing online casino platforms in campaigns that target youth.
Who cares if young celebrities shamelessly hawk these gambling sites on social media — prostituting themselves for a fee, in the service of conscienceless billionaires who cast their digital fishnets far and wide, reeling in the gullible and the desperate?” the cardinal asked. “Goodbye, studies. Goodbye, decent jobs. Goodbye, the hope of hardworking families, and hello to a whole generation of gambling addicts.”
Davis was considered a dark horse candidate to succeed Pope Francis following his death in April. In the Philippines, Catholicism dominates religion, with over 80% of the population identifying as Catholic.
Government Shakeup
In May, the entire board of the Philippines Amusement and Gaming Corporation (PAGCOR) resigned at the wishes of Marcos. The president encouraged all secretary-level officials and agency heads to step down to “enhance” the government’s “performance.”
The resignations included PAGCOR Chair and CEO Alejandro Tengo. The Marcos administration hasn’t yet named the PAGCOR successors.
Gaming remains a critical asset to the Philippine government. In 2024, legal gaming operators generated more than $7 billion in gross revenue.
https://www.casino.org/news/philippines-internet-gaming-focus-following-pogo-ousting/