Philippines Shuts Down Offshore Gambling Operations Targeting Chinese Players
The Philippines has announced a sweeping ban on offshore gaming operators which includes the best online casinos, specifically those targeting Chinese gamblers.
Locally known as POGOs (Philippine Offshore Gaming Operators), these establishments have proliferated across the nation, both legally and illegally, employing tens of thousands of Chinese and other foreign nationals.
However, in a bold move during his State of the Nation address, President Ferdinand Marcos Jr declared an immediate and total shutdown of the offshore gambling industry. This includes minimum-bet sportsbooks and top online casinos.
“Effective today, all POGOs are banned,” Marcos announced to a standing ovation from lawmakers, emphasizing the escalating issues related to this industry.
“Masquerading as legitimate enterprises, their operations have expanded into areas far removed from gaming, such as financial scams, money laundering, prostitution,” he said.
This comes as Marcos takes a firm stance against Chinese-linked operations amidst growing diplomatic tensions between Manila and Beijing over territorial disputes in the South China Sea. The Chinese government is likely to support this move, given that gambling is prohibited in China, except in Macao, and Beijing has been intensifying efforts to combat cross-border gambling, particularly in Southeast Asia.
The announcement was made during his third State of the Nation address on July 22, 2024. According to the country’s gaming regulator, there are over 40 licensed offshore gaming operators and numerous illicit gambling hubs in the Philippines, all of which Marcos has ordered to be shut down by the end of the year.
The POGO sector saw significant growth in the Philippines starting in 2016 under Marcos’ predecessor, Rodrigo Duterte, who critics say ignored suspected illicit activities as the industry brought in billions of pesos in state revenue. This came from low-deposit casinos, minimum-bet sportsbooks and best online casinos. As a result, the Philippines became a major hub for online gambling, serving tens of thousands of players from China.
The surge of online casinos in the Philippines
In recent years, Southeast Asia has seen a surge in online casino scam syndicates, profiting from players worldwide, including in China and the United States. This became more pressing during the COVID-19 pandemic. News reports from CNN indicate that many working for these scam syndicates are themselves victims of human trafficking.
CNN reported that POGOs have persisted because they brought substantial revenue to local treasuries and created many jobs throughout the country. However, these gaming hubs had also spawned various criminal activities, allegedly damaging China’s image among the Filipino public.
Some POGOs operate in abandoned malls, while others are found in converted parking lots or cheap rented offices. These have come under increasing scrutiny from Manila authorities, who say many are fronts for scam centres and other crimes.
In March, over 800 Filipinos, Chinese, and other nationals were rescued in a police raid on an online romance scam centre posing as the best online casino north of the capital, according to the official Philippine News Agency.
Last month CNN reported that the Chinese embassy in Manila had urged the Philippines to ban POGOs “to eliminate this social ill.” Five offshore gambling centres were subsequently shut down and nearly 1,000 Chinese citizens were repatriated over the past year.
In March, China’s embassy in Singapore warned its citizens to avoid all forms of betting, reiterating that gambling overseas violates Chinese laws.
“Even if overseas casinos are legally opened, cross-border gambling by Chinese citizens is suspected of violating the laws of our country,” the embassy was quoted as saying.
Impact of Philippines’ move on gambling
This significant move by the Philippines underscores a commitment to promote responsible gambling and mitigate the adverse impacts of illegal operations.
It aligns with global efforts to regulate and uphold the integrity of the best online casinos and reputable minimum bet sportsbooks, among others.
The impact of the decision has not yet been felt but with time, the country would be able to determine its impact on gamblers and citizens at large.