EDITORIAL - POGO defenders

There are two remaining main arguments for the retention of Philippine offshore gaming operator firms. One is the revenue collected from POGOs, despite finance officials saying that the government is not collecting the correct taxes and fees.

Yesterday, a finance official told the Senate that while total economic benefits from POGOs are placed at P166.49 billion annually, the total economic costs amount to P265.74 billion in terms of lost investment opportunities, negative impact on tourism and higher expenses for law enforcement. This translates into a net loss of P99.52 billion. Since the start of the Marcos administration, finance officials have said POGOs are more trouble than they’re worth.

The other argument now being raised by several congressmen is that if POGOs are totally banned, the operations would simply go underground. That’s like arguing that criminal activities such as jueteng and drug trafficking should be legitimized so the operators won’t be forced to operate clandestinely.

Arguing for tight regulation of POGOs cannot hold water when the sector is in its current sorry state precisely because of failure of government regulation. Several POGOs maintained torture chambers and engaged in cyberscams and human trafficking even before their gaming licenses were revoked last year. POGO operators have been implicated in corruption, and employees arrested for activities including murder.

Law enforcement agencies have pointed out that criminal activities in POGOs could not be immediately detected or stopped precisely because they all started out with licenses including business and gaming permits, and therefore were considered legitimate enterprises.

Most of the POGO licenses nationwide have not been renewed by the Philippine Amusement and Gaming Corp. PAGCOR, which serves as both gaming operator and regulator of its own activities, continues to argue for the retention of licensed POGOs. PAGCOR has also launched internet gaming licensee operations, which critics say are POGOs with a different collar.

Yesterday, national security officials echoed what other defense and public safety officials have said, that POGOs – whose principal clients are Chinese nationals on the mainland where offshore gaming is illegal – pose a potential threat to the Philippines’ national security.

Also yesterday, alumni of the University of the Philippines College of Law, led by retired Supreme Court senior associate justice Antonio Carpio, added their voice to the widespread calls for a total ban on POGOs. In an open letter to President Marcos, the alumni pointed out that the licensing of POGOs violates PAGCOR’s own rules on internet gaming, which prohibit accessing of offshore gaming websites in the Philippines by people in countries where the activity is illegal.

A total ban on POGOs does not need legislation. The nation awaits the order from President Marcos.