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News » Philippine senator supports comprehensive POGO shutdown

Philippine senator supports comprehensive POGO shutdown

philippine-senator-supports-pogo-shutdown
Photo from Facebook/Sherwin Gatchalian

MANILA, PHILIPPINES — Philippine Senator Sherwin Gatchalian has expressed his approval of President Ferdinand Marcos Jr.’s directive to terminate Philippine Offshore Gaming Operators (POGOs) by the end of the year

Speaking on ANC’s Headstart, Gatchalian highlighted the significance of Executive Order 74, which details the responsibilities of various entities in ensuring a smooth cessation of POGO operations.

Addressing employment concerns

Senator Gatchalian underscored the need to address the employment concerns of approximately 20,000 Filipinos working in POGO-related industries. 

He emphasized the importance of providing alternative job opportunities for these workers as the industry winds down.

Distinction between SCBPOs and POGOs

Gatchalian also clarified the distinction between POGOs and special-class business process outsourcing firms (SCBPOs). Unlike POGOs, which are gambling entities that accept bets and operate games of chance, SCBPOs provide support services to international gaming companies without directly engaging in gambling activities.

“POGOs are gambling entities, meaning they take bets. The bets that they take, they put in a form of game of chance and reward people who win or take out the bets themselves,” Gatchalian explained.

In contrast, he described SCBPOs as specialized BPO companies servicing foreign gaming firms without handling bets, with 95% of their workforce being Filipinos. 

Gatchalian expressed support for PAGCOR’s position to keep SCBPOs operational due to their economic contributions and employment opportunities for Filipino workers.

Enforcement challenges and local government role

As the closure deadline for POGOs approaches, Gatchalian acknowledged enforcement difficulties, noting that some POGOs have fragmented into smaller groups to evade detection.

“They’re moving out of urban areas. They’re leasing resorts in particular because resorts have rooms and facilities, and they operate there under the radar,” he stated.

He also pointed out that some POGOs are disguising their operations by blending in with legitimate BPO companies.

Gatchalian called on local government units (LGUs) to remain vigilant in identifying and reporting suspicious activities, emphasizing their critical role in ensuring a smooth transition during the crackdown on illegal POGO operations.

Repurposing POGO infrastructure

Regarding infrastructure left by POGOs, such as facilities in Bamban and Porac, Gatchalian mentioned potential repurposing for government use. 

The senator said that government agencies like the Technical Education And Skills Development Authority (TESDA) and the Armed Forces of the Philippines (AFP) had shown interest in utilizing these properties for training or educational purposes.

Real estate market stabilization

The senator also noted a positive impact on the real estate market due to the POGO shutdown. With fewer operators, lease rates have decreased, benefiting local residents and legitimate BPO companies looking to expand.

Overall, Senator Sherwin Gatchalian remains supportive of the government’s decision to close down POGOs while advocating for measures that protect Filipino workers affected by this transition. 

He stressed the importance of vigilance in enforcement and anticipated potential benefits for other sectors resulting from this policy shift.

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