MANILA, Philippines — Finance Secretary Benjamin Diokno wants to bid Philippine Offshore Gaming Operators (POGO) farewell despite the possible hit on the national government’s annual revenue collections.
Diokno told the Kapihan sa Manila Bay briefing that the presence of POGOs in the country boosted reputational risks and carried social costs.
“For me, let’s get rid of POGOs. We can get revenues from lots of other sources,” he said on Wednesday.
For context, the national government raked in P4.438 billion from POGOs in the first eight months of 2022. This was already larger compared to the P3.91 billion haul they tallied in 2021.
Past administrations maintained on-and-off relationships with POGOs, mostly hailing from China as the world’s second-largest economy already banned gambling.
POGOs, as it is, generate guaranteed revenues for the Philippine government but some have criticized its links to money laundering and crime syndicates.
The Anti-Money Laundering Council already flagged this in March 2020, as some transactions from POGOs were revealed to have alleged links to drug trafficking.
The local real estate industry also cashed in on POGOs. This industry occupied 5% of total leasable office spaces across the country, according to data from Colliers Philippines in 2022.
Diokno opined that the presence of POGOs raised the possibility of why the Philippines remained on the Financial Action Task Force’s “gray list.”
Government officials hoped the Philippines would be removed from the Paris-based money-laundering watchdog’s list by January 2024. The country missed an earlier deadline.
The Finance chief also cited the social costs of keeping POGOs operating, owing to concerns surrounding criminality. As it is, some senators in 2022 railed against the presence of these offshore casinos in the country, considering the spate of kidnappings and illegal work permits.
“Are we a soft state? Why do we allow their presence here?,” Diokno added. — Ramon Royandoyan