The Philippine Chamber of Commerce and Industry (PCCI) is advocating for a tiered phaseout in the Philippine Offshore Gaming Operators (POGOs) in the country since sudden closure could hurt the property and financial sectors and cost “massive” jobs.
“While PCCI supports the stoppage of POGO operations in the Philippines, it cautioned against a haphazard, indiscriminate and sudden closure of all POGOs in the country because of the possible massive loss of jobs and related displacement of many businesses and industries, from food services to administrative support and transport services,” the business group said in a statement.
“Relatedly, PCCI is worried over the spillover effects of the POGO closures on the financial institutions that funded new office buildings to accommodate the POGOs and the collateral damages for ancillary industries such as real estate and communication services,” it added.
PCCI President Enunina Mangio said PCCI is concerned about how POGOs will affect many other areas, such as business property.
Magnio added that many owners had built office buildings so that the POGO workers could live there.
Leechiu Property Consultants data showed that the number of office space deals for POGOs dropped by 15 percent a year to 75,000 square meters (sq. m.) in the first half of 2024.
This is a far cry from its highest point in 2019, when POGO took up 242,000 square meters in the first half of the year and 738,000 square meters for the whole year.
Magnio also said that some of the Philippine Amusement and Gaming Corp. (PAGCOR)-approved POGOs represent serious societal risks since they have been used as havens for fraud, crime, and human rights abuses.
“First, we call for the immediate closure of all POGOs operating illegally and without operating licenses,” she said.
“Second, we call on PAGCOR and other government agencies involved in regulating the POGO business, including the Bureau of Internal Revenue and the Bureau of Immigration, to carefully review the mandates from licenses, work licenses, and tax obligations of the POGO operators,” Magnio said.
“We, hence, enjoin the National Government and PAGCOR to carefully manage the POGO phaseout or ban to avoid serious economic displacement,” the PCCI official also said.
Finance Secretary Ralph Recto earlier sent a letter suggesting a POGO ban to President Ferdinand Marcos Jr.
The Department of Finance (DoF) said in a Senate hearing on Tuesday that it is prepared to forgo the P13 billion in taxes collected from POGOs, as it anticipates that these taxes will be compensated by investments that will be made when industry-related crimes have subsided.
DoF estimates showed that the government loses P55.36 billion in investments due to reputational risk associated with POGOs, and PAGCOR estimates that shutting down POGOs would result in a P20 billion annual loss of revenue. (TCSP)
