PAGCOR proposes exemption for special BPOs in POGO shutdown
MANILA, PHILIPPINES — The Philippine Amusement and Gaming Corporation (PAGCOR) Chairman Alejandro Tengco proposed sparing special business process outsourcing (BPO) firms that serve gambling companies from the impending shutdown of Philippine offshore gaming operators (POGOs).
Tengco emphasized that these BPOs are not directly involved in gambling activities and that preserving them could save thousands of Filipino jobs.
PAGCOR’s proposal to save jobs
In an interview on ANC, Tengco expressed his regret over the potential job losses.
However, he clarified that he is not lobbying but merely making a suggestion to retain the operations of the special BPOs, which employ over 9,000 Filipino workers.
Tengco revealed that he had already discussed this proposal with President Ferdinand Marcos Jr., who had ordered the complete shutdown of all POGOs, including 43 Internet Gaming Licensees (IGLs), by the end of the year.
He also plans to bring this suggestion to high-level meetings with Cabinet members in the coming days.
There are currently 12 special BPOs in the Philippines that serve gaming companies based in Australia, Canada, Europe, and the United States. The PAGCOR chief added that another six companies are also applying for special BPO permits.
Concerns and scrutiny over BPOs
However, Senator Sherwin Gatchalian expressed reservations about Tengco’s proposal. Gatchalian highlighted the need for careful analysis to ensure that these BPOs do not morph into gaming companies.
“There’s a fine line between these service providers for gaming companies and also actual gaming companies,” he stated. “You can actually merge these two entities and become one gaming company. But how easy is that to happen that’s something that we need to analyze.”
Impact on workers and assistance programs
The shutdown of POGOs is expected to affect thousands of workers, both foreign and Filipino. The Department of Labor and Employment (DOLE) has initiated efforts to assist displaced workers, including profiling them to match with new job opportunities and providing necessary training and upskilling.
No new POGO hires
In line with the president’s directive, PAGCOR announced that starting July 31, 2024, no new hires for POGO operations will be allowed. This decision underscores the government’s commitment to phasing out POGOs by the end of the year.
As the government moves towards shutting down POGOs, the fate of BPOs servicing gambling firms remains uncertain. While PAGCOR’s proposal aims to mitigate job losses, it faces scrutiny and requires thorough evaluation to balance economic and regulatory concerns.
