The Philippines has been a hub for online gambling operations since 2016, attracting foreign investors and workers due to favorable regulatory frameworks and competitive labor costs.
The online gaming industry, often called Philippine Offshore Gaming Operators (POGOs), contributed significantly to the country’s GDP, tax revenues, and employment rates. However, recent legislative changes have led to a ban on the online gambling industry in the Philippines.
Reasons Behind the Online Gambling Ban
The POGO industry has long faced scrutiny over alleged crimes involving kidnapping and human trafficking. President Marcos ultimately banned the industry in July of 2024, giving operators till the end of the year to close shop and return home.
Several factors led to the change, including:
- Rising Concerns Over Criminal Activities: The online gambling industry faced allegations of facilitating illegal activities such as money laundering, fraud, and human trafficking. Law enforcement agencies reported a surge in crimes linked to the sector, prompting the government to take decisive action.
- Diplomatic Tensions with Neighboring Countries: Several neighboring countries, particularly China, expressed concerns over the impact of the Philippines’ online gambling operations on their citizens. A significant portion of the customer base for POGOs originated from these countries, leading to diplomatic strain and pressure to ban the trade.
- Public Health and Social Issues: Addiction and financial distress among gamblers were also cited as reasons for the ban. Lawmakers highlighted the need to prioritize public welfare over economic gains.
The Exodus of Foreign Workers
The ban resulted in the exodus of approximately 24,000 foreign workers who were employed in the online gambling sector. These workers, predominantly from China, were integral to the industry’s operations.
The mass departure has led to the following:
- Vacancies in the Real Estate Market: Many foreign workers rent residential and commercial properties, particularly in urban centers. Their departure has caused a decline in rental income and property values.
- Loss of Local Employment Opportunities: The ban has also affected Filipino workers who supported the industry through IT, customer service, and logistics roles.
Are Online Casinos Still Legal In The Philippines?
Yes, online Philippine casinos are still legal and were unaffected by the recent POGO ban. The POGO system was initially implemented to increase revenue for the country, but POGO casinos were not allowed to offer their services to the Philippines.
Today, both domestic casinos and offshore casinos are allowed to accept PH players over the legal gambling age. Popular online casino games include blackjack betting, roulette, craps, video poker, and more.