Philippine President Ferdinand Marcos Jr. has announced a full ban on foreign-facing online gambling operations (POGOs).
Marcos told the Philippine Congress in his State of the Nation Address on Monday (July 22) that the ban will fully apply from the end of the year, but that the ban is immediate in principle.
“Disguising as legitimate entities, their operations have ventured into illicit areas furthest from gaming, such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder.
“The grave abuse and disrespect to our system of laws must stop.
“Effective today, all POGOs are banned,” Marcos said to roars of approval and a lengthy standing ovation from the floor of Congress.
“I hereby instruct [gambling regulator] PAGCOR to wind down and cease the operations of POGOs by the end of the year.”
Marcos’ move to ban POGOs, the very last announcement of his speech, follows years of mounting scandal and infamy in the sector, climaxing with a series of raids on properties that showed the Philippines was hosting Southeast Asian-style, cyber-scamming operations with forcible labour.
Congressional anger over relentless criminal and underground activity by regulated and unregulated online operations had generated several bills in the House of Representatives and the Senate to ban the sector.
However, few politicians and observers predicted that Marcos would order a ban during the speech, and Marcos’ decision to end with the announcement reflects strong bipartisan and popular support for the dismantling of the sector.
Marcos also promised to provide employment options for Filipinos who lose their jobs with the POGO shutdown, and finished by quoting John Stuart Mill.
“Bad men need nothing more to compass their ends, than that good men should look on and do nothing,” Marcos said. “He is not a good man who, without a protest, allows wrong to be committed in his name.”
The announcement heralds another seismic shift in the offshore gambling ecosystem, just as another offshore hub, Curaçao, prepares for the exile of many of the gambling companies based there.
The Dutch-controlled island is reforming its gambling laws and requiring many companies currently operating in secret to apply for direct licensing.
A matching exodus from the Philippines will create yet more opportunities for the many challenger jurisdictions that have been pitching for business in the past year.
Regions such as Timor-Leste and Anjouan have promised light-touch regulations and miniscule taxes in an attempt to court licensees.
Additional reporting by Joe Ewens.