PCSO urged to consider using e-sabong to recover revenue loss from POGO ban

MANILA, Philippines — To cushion the blow of losing billions in revenue from banning Philippines offshore gaming operators (POGOs), a House of Representatives leader on Tuesday proposed for the government to tap into the earnings of another troubled gambling industry: sabong or betting on cockfights.

With the government facing a loss of P7 billion from the POGO ban, House Deputy Speaker Jay-jay Suarez urged the PCSO to study the possibility of regulating online or offline cockfighting to allow the government to make up for the lost revenue from dismantling POGO hubs.

The House leader made the suggestion during the appropriations committee's deliberations of the proposed 2025 budget of the Philippine Charity Sweepstakes Office (PCSO) on Tuesday.

Suarez said at least 25,000 Filipino workers could also lose their jobs from the POGO ban.

"Given this situation... Meron ba kayong naiisip na ibang paraan para puwede nating, hindi naman matapatan yung mawawala, pero mapunuan para hindi masyadong masaktan ang pamahalaan?" he asked PCSO.

(Do you have any other ideas on how we can minimize the government's losses without fully replacing the revenue we're about to lose?).

Suarez described e-sabong as a "billion dollar industry" and an "opportunity" for government to study which agency can properly regulate its players. 

"One thing we need to accept: it's happening, but government is not earning because they are operating illegally," the lawmaker added.

Suarez also acknowledged that the online nature of e-sabong allows it to continue operating despite the government's suspension of all e-sabong operators.

Felix Reyes, chairperson of the PCSO Board of Directors, said that for now, there is no clear law that states which agency has the primary mandate of regulating sabong operators.

"Pero maganda sigurong suriin natin (It would be good to study this)... Because if it's online, its the [Philippine Amusement and Gaming Corporation], or it can be the PCSO," the PCSO chair added.

Reyes also cited the PCSO's experience in facilitating lotto bets through physical and authorized outlets in possibly handling sabong operations. 

Suarez suggested for the PCSO to "come up with an innovative manner, systems and games" to mitigate the the financial impact of the POGO ban on government.

President Ferdinand Marcos Jr. announced a total ban on all POGO operations in his third State of the Nation Address on July 22.

The president's decision came after a series of marathon hearings at the Senate led by Sen. Risa Hontiveros that found alleged criminal and illegal activities linked to POGO hubs.

Marcos' economic managers believe the benefits outweigh the costs of weeding out POGO hubs as these contribute less than a half of one percent of the country's gross domestic product, as of 2022.

Meanwhile, e-sabong operations have also been linked to alleged criminal activities. In April 2022, the Senate committee on public order and dangerous drugs found at least 34 persons have been allegedly abducted for their involvement in the online gambling activity. 

In December 2022, Marcos formalized the suspension of e-sabong operations that were verbally ordered by former President Rodrigo Duterte in May 2022.

However, e-sabong operations have continued underground more than a year later. Government data estimates at least 789 existing e-sabong operators as of February. — Cristina Chi