Philippines Offshore Gambling Operators (POGOs): Off-putting

Fugitive Alice Guo is escorted to a press conference, after she was deported from Indonesia, at an airport in Metro Manila, Philippines, on 6 September 2024. (Photo by Daniel Ceng / ANADOLU / Anadolu via AFP)

In an article by the Fulcrum, Teresita Ang See discusses the high-profile case involving Alice Guo (Guo Huaping), which has uncovered a raft of issues related to offshore gambling operators in the Philippines.

Born in China and formerly the mayor of Bamban, Tarlac, Guo is now at the heart of a high-profile investigation. What began as a crackdown on illegal online gambling and undocumented Chinese migrants has expanded to expose other issues, including Guo’s controversial acquisition of Filipino citizenship and links between POGOs, illegal drugs, extrajudicial killings and human rights violations committed during President Rodrigo Duterte’s (2016-2022) drug war.

Established in 2003, POGOs gained momentum under President Duterte, who relaxed restrictions on internet gambling to boost revenue and create jobs for Filipinos. Duterte’s Executive Order No. 13 in February 2017 formalised POGO operations, placing them under the regulation of the Philippine Amusement and Gaming Corporation (PAGCOR). The executive order facilitated POGOs’ immense popularity and satiated demand for online gambling.

A year later, POGOs faced scrutiny during Chinese President Xi Jinping’s state visit to the Philippines. China called for a halt to their operations. The request stemmed from the fact that POGOs primarily target Chinese gamblers (punting is illegal in China). Duterte initially declined, citing the economic benefits to the Philippines. Later, however, he agreed to review the matter during his state visit to China in August 2019. The review, however, did not put the brakes on POGOs. The share of Filipinos employed in the POGO industry rose from 14.5 per cent in 2019 to 48.9 per cent in 2022, according to a cost-benefit analysis by the Philippine Institute of Development Studies. Real estate consultant Leechiu Property has claimed that the exit of POGOs could cost more than 200 billion pesos in economic losses. The PIDS study concurs with reports from the National Economic Development Authority (NEDA), Department of Finance (DOF) and Philippine National Police (PNP), which indicated that the social costs of POGOs — such as human trafficking, kidnapping, money laundering and other crimes — far outweigh the benefits.