Philippine leader signs order banning offshore gaming ops

Nov 11, 2024 Newsdesk Latest News, Philippines, Top of the deck  

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Philippine President Ferdinand Marcos Jr (pictured) has issued an executive order prohibiting all offshore online gaming operations in the country. Executive Order No. 74, published on Friday, states that the ban shall encompass existing operators, license applications, license renewals, cessation of operations and illegal offshore gaming operations.

On July 22, the Philippine leader had said that Philippine Offshore Gaming Operators (POGOs) – now known as Internet Gaming Licensees (IGLs) – would need to end their business in that country by year-end.

President Marcos was cited in a Friday press release as saying, referring to Executive Order No. 74: “The state has the paramount duty to safeguard national security, maintain public order, uphold the rule of law, protect the safety of its citizens, and ensure the integrity of the social fabric of the nation.”

“The high reputational risks associated with POGO/IGL operations deter foreign investment and tourism, undermining the efforts of the national government in promoting the country as a safe and sustainable investment and tourism destination,” the executive order stated.

All POGOs/IGLs and other offshore gaming operations and other offshore gaming-related/auxiliary/ancillary services with issued licences and permits “are expected to completely cease operations, including the winding up of their affairs, on December 31, 2024 or earlier,” it added.

Under the new regulation, two technical working groups will be established to develop a comprehensive strategy to enforce the ban on offshore online gaming operators.

The executive order cited a study by the country’s Department of Finance, which said illegal activities by some offshore gaming operators – such as increased crime rates, social instability, and exploitation – “significantly outweigh” the economic and social benefits derived from the industry.

The country’s leader also issued directives to national government agencies in response to the immediate ban on offshore gaming operations.

President Marcos wants the Presidential Anti-Organized Crime Commission, the Philippine Drug Enforcement Agency, and other law enforcement agencies to intensify their efforts against illegal operators and service providers.

The President has also directed the Cagayan Economic Zone Authority (CEZA) to comply with the ban on offshore online gaming operators.

The order was made through a memorandum signed by Executive Secretary Lucas Bersamin and issued to CEZA administrator and chief executive officer Katrina Ponce Enrile. The document was also released on Friday.

There have been questions on whether the ban applies also to so-called special class business process outsourcing (SCBPO) providers, which are business-to-business services companies that work with various sectors, including online gaming operators from overseas.

Gaming lawyer Marie Antonette Quiogue said in a statement that, in her view, Executive Order No. 74, “based on how it is drafted, does not include SCBPOs in the list of entities that are subject to the POGO/IGL ban”.

SCBPOs “do not fall under the categories” of either “POGO Licensee”, “POGO Gaming Agent” or “POGO Service Providers”, as “they do not provide components of operations to POGOs,” she added.

Other sections in the document also do not cover SCBPOs, according to Ms Antonette Quiogue.

“The key here is that the ban is always linked to offshore gaming operations and services – which is really the crux of the executive order,” she said.

The lawyer stated: “Under the definition of SCBPOs, these are entities that are ‘servicing legitimately licensed gaming operators abroad and do not in any way handle betting but purely product marketing and customer relations.”

They are also “not servicing any” offshore gaming licensees regulated by the Philippine Amusement and Gaming Corp (Pagcor), she added.

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