Analysis | Duterte played China over online gambling. The house won
- Duterte turned a blind eye to Beijing’s objections when Chinese offshore gambling firms – or Pogos – rolled into town and flashed the cash
- Now he’s struggling to see how the taxman can take a cut
The problem is, the government does not know how many Pogo companies there are, how many people they employ, nor whether they are paying any taxes. And while economists and finance officials feel the Pogos should be paying more, government leaders cannot seem to agree on how to deal with the gambling firms.
In the past three years, Pogos have snapped up office space in Manila, paying premium prices, to the delight of real estate firms. Government, too, has benefited. A Philippine Star report said that next year the Philippine Amusement and Gaming Corporation (Pagcor) expects to collect 10 billion pesos (US$200 million) in licence fees from Pogos.
There are other benefits. Congressman Ruffo Biazon told This Week in Asia : “There are downstream economic activities where we earn … real estate is booming because of the Chinese. The retail industry is getting vibrant with the Chinese workers spending money here. The operational costs they entail are paid to local suppliers, contractors.”