Alejandro Tengco announced that up to 14 B2B service providers licensed by the Philippines but working with offshore gaming firms should receive exemption from the country’s upcoming ban on Internet Gaming Licensees (IGLs), formerly called POGOs. These companies currently employ over 9,000 Filipino workers.
Tengco, chairman of the Philippine Amusement and Gaming Corporation (PAGCOR), clarified the matter in an interview with ABS-CBN News. He stressed that these companies operate under the Business Processing Outsourcing (BPO) sector and do not directly engage in gambling operations.
Instead, Tengco explained that these BPOs provide support services to licensed gaming companies based in Australia, Canada, Europe, and the United States. He also emphasized that these BPOs do not qualify as gaming licensees and therefore should not fall under the same restrictions.
On July 22, President Ferdinand Marcos Jr. ordered that all IGLs must cease operations in the Philippines by the end of 2024. The order forms part of the administration’s crackdown on criminal activities linked to offshore gaming.
However, Tengco expressed that the ban should not include BPOs that only support foreign gaming clients. He also revealed that PAGCOR has received six additional BPO applications. “Aside from the 12 or 14 BPO licensees as of today, we have another six applicants,” Tengco said.
He added that he intends to formally raise the exemption request in upcoming cabinet meetings. Tengco also confirmed that he had already discussed the issue in private with President Marcos.
At the same time, Tengco acknowledged the concerns raised by some lawmakers. He stated that if officials believe the exemption may be misused to disguise illegal IGL operations, he would respect their decision. Still, he warned that enforcement will be a serious challenge once the ban takes effect. Tengco cited past cases where operators continued to run illegally even after losing their licenses.
Senator Sherwin Gatchalian, a vocal critic of POGOs, raised red flags in a separate interview with ABS-CBN News. He warned that some BPOs could morph into illegal gaming operations if left unchecked. “There’s a fine line between these service providers for gaming companies and actual gaming companies,” Gatchalian cautioned. “We don’t want a scenario where we allow the exemption but they eventually operate as gaming companies.”
In response to labor concerns, President Marcos ordered all relevant agencies to assist displaced Filipino workers once the IGL ban is fully enforced.
As of July 16, PAGCOR reported 38 active IGL permit holders serving offshore clients. In addition, seven provisional licensees remain operational, bringing the total to 43 companies affected by the ban.
Tengco testified during a Senate hearing that the 43 licensed IGLs collectively employ over 31,000 Filipino workers. Meanwhile, outsourcing companies with special licenses support another 8,000 to 9,000 Filipino employees. Additionally, around 31,000 foreign workers will lose jobs once IGL operators shut down.
Despite the ban, local online gaming for the Philippine market remains unaffected. All IGLs operate strictly for offshore or foreign clients and do not offer services to domestic users.
