Philippine President Ferdinand Marcos Jr gave the gaming regulator until the end of 2024 to shut down the Philippine offshore gaming operators. - AFP
MANILA: Philippine President Ferdinand Marcos Jr has banned offshore casinos operating in the Philippines, condemning the controversial online industry for its “grave abuse” of the country’s laws.
Marcos, in his State of the Nation address on July 22, gave the national gaming regulator until the end of 2024 to shut down the Philippine offshore gaming operators (Pogos) which cater to overseas gamblers, including Chinese nationals, and have been linked to criminal activities.
“The grave abuse and disrespect to our system of laws must stop... Effective today, all Pogos are banned,” said Marcos, earning a standing ovation and resounding cheers from lawmakers and guests at the Batasang Pambansa complex in the capital Manila.
“Disguising as legitimate entities, their operations have ventured into illicit areas furthest from gaming, such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder,” he added.
Pogos, primarily run by Chinese nationals, started flourishing in 2016 during former president Rodrigo Duterte’s term and have been the subject of multiple congressional hearings under the current Marcos administration.
The hearings include the Philippine Senate’s investigation of Alice Guo, the now-suspended mayor of a small Philippine town who was allegedly behind a scam hub fronting as a Pogo.
The authorities also say some Pogos have lured foreign workers, including Chinese nationals, with promises of legal jobs in the Philippines, only to trick them into working for the scam hubs later on.
The Chinese government has long been urging the Philippines to stop Pogos because of the illegal activities, even as tensions between both nations soared over territorial claims in the South China Sea.
Shutting down Pogos by the end of 2024 may be easier said than done, said political science assistant professor Jean Encinas Franco from the University of the Philippines.
She cited a recent study by the Philippine Institute for Development Studies think-tank that said the country could lose between three billion pesos (S$69 million) and 14 billion pesos in revenue should Pogos be banned.
“That’s something that the Philippine government has to reckon with,” Prof Encinas said, adding that the country’s law enforcement agencies should also be prepared to react should these gaming operators find ways to still operate despite the ban.
About 25,000 Filipinos and nearly 23,000 foreigners were employed by the Pogos industry at the end of 2023, government data shows.
In his speech, Marcos said he would direct his economic managers and the Labour Ministry to ensure Filipino workers in the industry would be able to find alternative jobs after the shutdown.
Marcos again drew loud applause from his audience when he reiterated the Philippines’ position on the South China Sea.
Without directly mentioning China, he noted that Manila “cannot yield” and “cannot waver” on its claims over the eastern parts of the South China Sea that lie within the country’s 200-nautical-mile exclusive economic zone.
The Philippines calls this contested area, which Beijing claims, the West Philippine Sea.
“The West Philippine Sea is not a figment of our imagination. It is ours,” said Marcos, who thanked the military and coast guard forces on the front lines of the dispute.
However, Manila will push to de-escalate tensions, he added.
Tensions have been boiling between the two nations over Manila’s resupply missions to a grounded World War II-era warship serving as its remote military outpost in Second Thomas Shoal, which China also insists it owns, along with most of the South China Sea.
Marcos’ remarks came a day after the Philippines and China announced that they had reached a “provisional agreement” on the conduct of the resupply missions, with both countries standing their ground on their respective sovereignty claims over the shoal.
On the domestic front, Marcos highlighted government efforts to help improve the farming and fisheries sector in a bid to cope with inflation, which remains Filipinos’ top concern, according to a survey released in June by local pollster Pulse Asia.
These include plans to irrigate thousands of hectares of farmland, boost farm-to-market roads, provide vaccines against swine fever, and clamp down on smugglers and hoarders controlling the prices of agricultural products.
The annual national address is the cornerstone of Philippine political tradition that sets out the government’s agenda.
Marcos’ announcements reflect efforts to save face amid a decline in his popularity ratings, said political analyst Cleve Arguelles of De La Salle University in Manila.
Another Pulse Asia survey showed that the President’s approval ratings in June dipped to 53 per cent from 55 per cent in March. In December 2023, the President had a 68 per cent approval rating.
Domestic issues and inflation continue to plague his administration. Marcos is trying to eclipse these challenges by taking a strong stance on the South China Sea dispute and announcing the ban on the Pogos industry, said Arguelles.
“I would imagine it’s a deliberate attempt to make sure that this speech would help him address his popularity issues... His presidency is really relying on foreign policy issues, such as our relationship with China when it comes to the West Philippine Sea and the government’s role in combating Pogos,” said Arguelles.
“I think his government is more and more reliant on shoring up public support, as this would give him a key advantage over his political rivals and the opposition.” - The Straits Times/ANN
