On July 22, Philippine President Ferdinand Marcos Jr. announced the closure of the world's largest offshore iGaming market, POGO (Philippine Offshore Gaming Operators). This decision was made in response to numerous crimes.
Alanbase figured out the reasons and wrote a story about what awaits iGaming in the Philippines next.
Reasons for closing POGO
The closure was also influenced by pressure from China. China has actively lobbied against POGO, claiming that they are damaging Chinese-Philippine relations. In general, Chinese law strictly prohibits gambling. Let's recall how, a few years ago, China forced Cambodia to refuse to issue offshore online licenses.
Results of the gambling industry in the Philippines for 2024
The Philippine Entertainment and Gaming Corporation (PAGCOR) has shown financial growth in the first half of 2024. Net profit increased by more than 120%, and gross gambling revenue increased by 19.21%. The growth is associated with reforms and stricter regulatory measures.
In 2023, PAGCOR earned more than $85 million on POGO, but the National Economic and Development Administration (NEDA) said their impending cancellation would not be a significant loss for the country's economy.
PAGCOR plans to complete the privatization process of Casino Filipino land-based casinos by 2025 and focus on gambling regulation, making the environment safer and more controlled. It will also strengthen control over 43 companies with offshore gaming licenses.
What awaits online gambling in the Philippines?
Alejandro Tengko, head of PAGCOR, noted that the company will now focus on offline gambling licenses and internal iGaming licenses (PIGO). This decision is also related to efforts to remove the Philippines from the FATF (Financial Action Task Force) gray list.
POGO operators will probably try to migrate to other countries, such as Malta or Curacao, or start working in the Philippines.
Operators can consider Cagayan Economic Zone Authority (CEZA) licenses as an alternative, as they have lower requirements and taxation.
Conclusion
There are reasons to fear not only the closure of the offshore sector but also pressure on the online casino industry as a whole. The movement of regulators in the Philippines is now directed towards offline gambling, and perhaps in the future, we will see even more bans and restrictions on gambling.
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