The Philippine gaming regulator had cancelled the licences of 175 Philippine Offshore Gaming Operators (POGOs) as of September 14, reported the Philippine News Agency, an official outlet. It cited remarks from Jose Dominic Clavano, assistant spokesperson of the country’s Department of Justice.
State-run Philippine Amusement and Gaming Corp (Pagcor) recently said there were now 30 licensed POGO firms in the country, compared to dozens of POGOs that had been in operation before the pandemic.
Mr Clavano said about 40,000 Chinese nationals were employed by the POGOs that had their permits cancelled. The move was part of a crackdown on the online gaming industry by the Philippine authorities.
The sector had grown exponentially up to the advent of Covid-19 in early 2020. The pandemic and higher taxes have been cited as factors in causing many POGOs to shut down.
“The crackdown was triggered by reports of murder, kidnapping and other crimes committed by Chinese nationals against fellow Chinese nationals,” Mr Clavano was quoted as saying.
According to the report, the POGOs targeted for closure had licences that either expired or were revoked, for violations like non-payment of government fees, said Mr Clavano.
The official said that 300 overstaying Chinese nationals would be repatriated back to China by the first week of October. By mid-October, an estimated 3,000 to 4,000 more would be repatriated, added Mr Clavano.
China’s embassy in Manila said in a statement that it supports the deportation and clampdown on POGO-related crimes, adding the Chinese government “firmly opposes and takes tough measures to combat gambling”.
David Leechiu, chief executive of real estate consultancy Leechiu Property Consultants, was quoted by several media outlets as saying that a complete exit of the POGO industry could translate into losses of PHP190 billion (US$3.23 billion) a year for the Philippine economy, from office and residential rentals, income taxes, utility bills, wages and regulatory revenues, among others.
