Offshore gaming firm misleads Philippine officials by posing as BPO

PAMPANGA, PHILIPPINES — The Philippine offshore gaming operator (POGO) Lucky South 99 Outsourcing Inc. misled the local government of Porac, Pampanga, by initially applying as a business process outsourcing (BPO) company in 2019.
This revelation came to light after a raid by the Presidential Anti-Organized Crime Commission (PAOCC) earlier this month.
Provincial officials discovered that Lucky South declared itself a POGO only in 2021 when it renewed its business permits.
The company had submitted Municipal Resolution No. 119 in 2019, which merely certified that the local council posed no objection to establishing and managing BPO services.
“There is machination,” said Provincial Board Member Ananias Canlas Jr., highlighting the deceptive practices during a hearing.
No business permit issued
Following the raids last June 4 and 5, Lucky South executives could not be located.
Pampanga Vice Governor Lilia Pineda expressed frustration over Porac Mayor Jing Capil’s statement that no business permit was issued to Lucky South in 2024 due to noncompliance with the Bureau of Fire Protection’s regulations.
Pineda questioned the lack of oversight, especially since Lucky South refused an inspection in March.
Continued operations despite shutdown order
Despite the shutdown ordered by Interior Secretary Benhur Abalos of its Angeles City operations in 2022, Lucky South continued to operate.
The company obtained occupancy permits for 27 buildings as early as 2017 and managed to renew its business operation in 2022. Canlas criticized the lack of due diligence, noting that a business permit was issued the same day the company applied for it.
Calls grow for nationwide ban on POGOs
POGOs are online offshore gambling companies that offer services to customers outside the Philippines. They are registered and licensed by the Philippine Amusement and Gaming Corporation (PAGCOR) to operate legally.
However, several Philippine officials are calling for a nationwide POGO ban due to an increase in kidnap for ransom and illegal detention cases that were related to the industry.
Rene Romero, the co-founder of the Pampanga Chamber of Commerce and Industry, called for a ban on both legal and illegal POGOs in the province, citing the minimal financial gain compared to the significant damage incurred.
During the raid in Lucky South 99, the PAOCC even found about 18 sets of Chinese military uniforms at the POGO hub.
PAOCC Executive Director Gilbert Cruz noted that the uniforms were not identical, and they were still determining whether they belonged to a single person or multiple individuals.
Col. Francel Margareth Padilla of the Armed Forces of the Philippines suggested that the uniforms were likely used as props in online scams.
Similar incidents of crime syndicates posing as BPOs
The issue of crime syndicates posing as BPOs is not unique to the Philippines. In Mexico, transnational criminal organizations have been known to use legitimate-looking businesses to launder money and facilitate illegal activities.
Similarly, in Southeast Asia, human trafficking rings have disguised their operations as BPOs to evade detection and exploit workers. In Malaysia, more than 1,000 people were arrested in 2023 in a major crackdown on scam call centers operating in Kuala Lumpur.
Meanwhile, Thai authorities expressed their concern about the increasing number of scam call centers targeting vulnerable adults. From March 2022 to November 2023, over 360,000 cybercrime cases were reported, with an estimated loss of 49 billion baht (US$1.39 billion).
India is also becoming a hub for crime syndicates posing as BPO firms. Tech giants Microsoft and Amazon have announced collaborations with India’s Central Bureau of Investigation (CBI) to combat tech support scams and conduct raids on illegal call centers nationwide.
In Europe, Germany recently dismantled what is considered the region’s largest network of scam call centers. The operation involved police cooperation within Germany, Albania, Bosnia, Kosovo, and Lebanon, resulting in the arrest of 21 individuals and the shutdown of 12 call centers.
Ukraine’s National Police also successfully dismantled a sophisticated criminal call center network that lured victims into phony cryptocurrency investments. Ukrainian authorities conducted searches across the country, detaining 14 suspects accused of defrauding victims in Ukraine, Moldova, Kazakhstan, and the European Union.