THE Philippine Amusement and Gaming Corp. (PAGCOR) yesterday said the real threat to national security are hacking and scam syndicates operated by foreigners, not legitimate and licensed offshore gaming operators such as Philippine Offshore Gaming Operators (POGOs).
PAGCOR chairman and chief executive officer Alejandro Tengco said legitimate internet gaming licensees (IGLs) generate funds for the government, contributing more than P5 billion to the agency’s gross revenues in 2023.
“We should not blame and demonize our licensed gaming operators because these are closely monitored by PAGCOR. Our licensees pay taxes, and they help provide legitimate jobs and livelihood to a lot of people,” Tengco said in a statement.
“To us, the real threat are the alien hacking and scam syndicates who operate underground, and they are the ones that our law enforcement agencies are trying to locate and dismantle. We are cooperating fully with the authorities in this regard,” he also said.
Tengco said PAGCOR has embedded monitoring teams in the physical venues of all licensed gaming operators, including land-based casinos, to ensure compliance with the terms of their licenses.
Those found violating the provisions of their licenses are meted fines and penalties and, in the most serious offenses, the licenses are revoked and their bonds forfeited, Tengco said.
“We do not need to outlaw POGOs; what we need to do is intensify anti-crime operations against suspected alien hackers, against scammers and cyber criminals who are usually hiding in highly secured buildings and compounds,” Tengco said.
“These criminal syndicates are not engaged in offshore gaming at all, and even if they are, they are doing it illegally. So they are the real threat, and we must go after them with everything that we have,” he added.
Last Friday, finance secretary Ralph Recto told reporters that some businesses identify themselves as POGOs even if they are not legitimate offshore gaming operators.
“Today, there are a lot of POGOs that are not really POGOs because they are doing something else. But we generalize and call all of them POGOs,” Recto said.
As Tengco made the statement, Sen. Imee Marcos called on the PAGCOR to temporarily suspend POGO activities in the country while it has yet to come up with new guidelines for their continued operations.
Marcos said it has already been two years since PAGCOR told lawmakers that it will craft new guidelines for POGO operations but nothing has been submitted to the Senate to this date.
Marcos has previously said she was in favor of sustaining the POGO industry because of the revenues that it has been giving to the government through taxes.
“Kasi sabi ng PAGCOR huwag daw ipagbawal. Hanggang ngayon hindi ko maintindihan ang patakaran ng PAGCOR kung ano ang allowed at hindi allowed. Ang usapan noon ise-segregate sila sa isang lugar, tatalima sa batas… Kaya ang tanong ulit sa PAGCOR, ano ba talaga kasi until today I have not received a complete answer (PAGCOR said we should not stop it. But PAGCOR has not yet issued the new guidelines that will clearly state what are allowed and what are not. The agreement before was POGOs will be segregated in one area, and that they will abide with the rules of the land. That’s why I am asking PAGCOR again, because until today I have not received a complete answer),” Marcos said in an interview with dzBB.
She said PAGCOR can suspend POGO operations since it is the industry’s regulator.
“Sila dapat nagre-regulate niyan. Sila ang magsasabi ano ang framework niyan. Make it known to all agencies, including LGUs, the police, the judiciary para magkaliwanagan kung allowed. Kung hindi talaga ma-regulate eh ihinto na yan (PAGCOR regulates the POGO industry. It should be the one which should come up with the framework and make it known to all agencies, including local government units, the police, and the judiciary, among others so that it will be clear to all which are allowed. If we cannot regulate it, we might as well stop its operations),” she said.
Marcos said PAGCOR, in formulating the guidelines, should consider POGO-related crimes that are happening and not be blinded by the billions of pesos of investments that the industry brings to the government, saying she has received reports that the industry has earned an estimated P12 billion for the government.
Marcos said allowing POGOs to continue operating also brings “reputational damage” to the country, citing recent developments showing that foreign fugitives are among those arrested by law enforcement authorities during the raid of POGO hubs.
“Maliban pa sa social cost, yung reputasyon ng Pilipinas na ito ang takbuhan ng mga criminal. Sa Pilipinas walang batas, puwede kang bumili ng kahit ano at maski sino. Kahiya-hiya naman (Aside from social costs, the Philippines has now earned a reputation of being a haven of criminals, and creates a notion that there is lawlessness in the Philippines, and the monied can buy just about anything or anybody. That brings shame to the country),” she said. — With Raymond Africa and Ashzel Hachero
