Will the Philippines ban offshore gambling operators amid ‘political risks’ with Chinese customers?

Manila launched enforcement action on the sector – a magnet for customers in China where gambling is banned – following repeated warnings from Beijing

Pogos, which employ about 201,000 Chinese and 111,000 Filipinos, deliver 190 billion pesos (US$3.2 billion) to the Philippine economy each year

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Offshore gaming based in the Philippines was a once-thriving sector that attracted customers in China, where gambling is banned. Photo: SCMP

Published: 8:00pm, 23 Mar 2023Updated: 8:59pm, 23 Mar 2023

A government panel studying the socio-economic impact of Philippine offshore gambling operators (Pogos) has recommended an outright ban on the sector, citing “political risks” involving Chinese gamblers.

Senator Sherwin Gatchalian, who headed the committee, said Filipinos stand to lose more than they will gain from the online gaming industry as most bettors were Chinese nationals.

“In essence, Chinese nationals are using offshore gaming operations based in the Philippines as a loophole to circumvent Chinese criminal law,” Gatchalian said on Wednesday after presenting the commission’s findings to the Senate.

The once-thriving sector was a magnet for customers in China, where gambling is banned. The business has also been blamed for a wave of Pogo-related crimes, prompting Manila to launch a blitz of enforcement actions following repeated warnings from Beijing.

According to police data, Gatchalian said about 102 Pogo-linked crimes, including kidnapping and human trafficking, were reported between 2017 and 2023.

He added the victims included 214 Chinese nationals and 28 Filipinos.

The senator also pointed out that online gaming operators are “highly prone” to money laundering and evaded taxes by under-reporting their revenue.