POGOs shift to Visayas and Mindanao, rebrand as BPOs: PAOCC
PASAY CITY, PHILIPPINES — Philippine offshore gaming operators (POGOs) are reportedly restructuring their operations by relocating to the Visayas and Mindanao and rebranding as business process outsourcing (BPO) firms.
This shift follows intensified government crackdowns and the enforcement of a total ban on POGOs under Executive Order No. 74.
POGOs break into smaller groups amid crackdown
Presidential Anti-Organized Crime Commission (PAOCC) Director Winnie Quidato disclosed during a Senate hearing that large-scale POGO companies have fragmented into smaller “guerilla groups” of 10 to 20 individuals.
“The big POGO companies that we have raided before… we are seeing that they’ve broken into smaller groups,” Quidato said.
Many of these groups have registered new names with the Securities and Exchange Commission (SEC) to pose as legitimate BPOs.
Quidato cited a raid in Parañaque City where a suspected POGO operation occupied 45 houses within a single subdivision. This tactic is reportedly becoming more common as operators seek to evade detection.
Relocation to Visayas and Mindanao gains momentum
The PAOCC has observed an increasing number of POGO operators relocating to less monitored regions in the Visayas and Mindanao due to heightened enforcement in Luzon.
“Because we are active in the Luzon area, we found that most of the POGOs are now in several areas [in the] Visayas and even in Mindanao. They’re operating there,” Quidato explained.
He also noted a rise in flights from Luzon to these regions, with former POGO employees among the travelers.
Executive Order No. 74 spurs industry changes
President Ferdinand Marcos Jr.’s Executive Order No. 74 mandates the complete ban of POGO activities by December 31, 2024. This policy aims to address illegal gaming operations and their associated social issues.
Despite this, some operators are skirting the ban by rebranding their businesses or moving operations to underserved areas.
Quidato emphasized that PAOCC will meet with other agencies to ensure effective implementation of the order. “We will discuss with other agencies on how we are going to do about the solving of these problems,” he stated.
SEC monitors rebranding tactics of POGO operators
The SEC is working closely with PAOCC to monitor companies attempting to disguise themselves as BPOs.
SEC Assistant Director Jonathan Paguirigan warned that any continued engagement in gaming activities would violate the executive order.
“If they are still engaging in POGO activities, that would already be a violation of the executive order,” Paguirigan stated.
According to Hale Oliver Labayo of the SEC’s Company Registration and Monitoring Department, legitimate POGOs without prior violations may amend their registration documents to operate as BPOs but must comply with strict conditions.
This crackdown highlights the government’s commitment to addressing illegal gaming while safeguarding the integrity of the BPO sector, which remains a vital economic contributor.
