The Presidential Anti-Organized Crime Commission (PAOCC) has raised concerns about Philippine offshore gaming operators (POGOs) shifting their activities to regions like Visayas and Mindanao in an attempt to bypass a nationwide ban.
President Ferdinand Marcos Jr. has ordered the shutdown of all POGO operations by the end of the year. Despite this directive, reports suggest that illegal activities persist, with some operators relocating or rebranding as business process outsourcing (BPO) companies to avoid detection.
During a Senate panel’s final hearing on POGOs, Senator Risa Hontiveros highlighted that some operators are now fragmenting into smaller groups to evade enforcement efforts. She questioned whether this tactic, observed in Metro Manila, is also spreading to Luzon, Visayas, and other parts of the country.
PAOCC Director Winnie Quidato confirmed that the issue is widespread, with operators establishing new bases in Visayas and Mindanao. He noted a noticeable increase in flights from Luzon to Visayas, often carrying former POGO employees. These individuals, he explained, are rebranding their companies with the Securities and Exchange Commission to present themselves as legitimate BPOs.
Quidato emphasized the need for a unified effort to combat these activities, adding that discussions with other government agencies are underway to ensure the effective implementation of Executive Order 74 and to address the challenges posed by these illegal operations.
The Expanding Reach of Illegal Gaming
The relocation of illegal gaming operations following the POGO ban was anticipated. Research by the International Federation of Horseracing Authorities (IFHA), as reported by AGB, has shed light on the broader implications of the crackdown. The study revealed that the ban has inadvertently exported the country’s illegal betting model to other regions, amplifying its impact.
James Porteous, Head of Research for the IFHA Council on Anti-Illegal Betting and Related Crime, pointed out that organized crime syndicates are exploiting this shift. These groups pose as legitimate businesses while undermining regulators and officials, extending their networks into new territories.
The research warned that shutting down the POGO industry in the Philippines has not resolved the problem but has instead displaced it. Operators are now migrating to jurisdictions with existing infrastructure or connections. Past disruptions, such as in 2016, led to the emergence of illegal betting hubs in countries like Laos, Cambodia, and Myanmar, which are also hotspots for cyber scams and organized crime.
This troubling trend highlights the need for robust international cooperation and enhanced regulatory measures to address the escalating risks associated with illegal gaming and its ties to broader criminal networks.