Marcos Announces Total Ban on POGOs in SONA 2024

In a surprising turn of events during his State of the Nation Address (SONA) on July 22, 2024, President Ferdinand “Bongbong” Marcos Jr. announced a complete ban on Philippine Offshore Gaming Operators (POGOs) in the country.

The President’s directive came as a shock to many, as he declared, 

“Effective today, all POGOs are banned. I hereby instruct Pagcor to wind down and cease the operations of POGOs by the end of the year.”

The decision to ban POGOs comes amidst growing concerns over the industry’s involvement in various criminal activities, such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, torture, and even murder.

President Marcos emphasized the need to put an end to these illicit operations, stating, “The grave abuse and great disrespect to our system of laws must stop.”

Impact on Employment and the Economy

The ban on POGOs is expected to have significant implications for the Philippine economy and the thousands of Filipinos employed in the industry.

According to the Department of Labor and Employment (DOLE), around 22,000 Filipinos are currently working in some 50 legitimate POGO companies as of June 2024. However, the actual number of Filipinos employed in the industry, including those working in clandestine POGO hubs, could be much higher.

The closure of POGO companies is expected to result in a substantial loss of jobs, posing a major challenge for the government. Labor Secretary Benjamin Laguesma acknowledged that the displacement of these workers would be a serious concern, given the tight job market in the country.

The sudden increase in unemployment could potentially lead to social problems if not addressed promptly.

To mitigate the impact on affected workers, President Marcos has instructed the DOLE, in coordination with the administration’s economic managers, to use the time between now and the end of the year to find new jobs for displaced Filipinos.

The government aims to provide alternative employment opportunities and support for those who will lose their livelihoods due to the POGO ban.

Calls for a Gradual Phaseout and Transitory Mechanisms

In light of the potential economic and social repercussions of an abrupt POGO ban, various stakeholders have called for a more gradual approach.

The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, has suggested a phased closure of POGOs, taking into consideration the expected job losses and the impact on businesses that provide support services to the industry.

Senator Sherwin Gatchalian, chair of the committee on ways and means, emphasized the need for transitory mechanisms and safety nets for affected workers. He proposed upskilling and reskilling programs to ensure that displaced employees can find replacement jobs as soon as possible.

The DOLE has expressed its readiness to implement the necessary programs to aid POGO workers, including facilitation programs for reskilling and upskilling, as well as livelihood and emergency employment through community-based initiatives.

Addressing the Root Causes and Ensuring Compliance

While the ban on POGOs aims to curb the criminal activities associated with the industry, it is crucial to address the root causes of these issues. The failure of regulatory authorities to effectively monitor and enforce compliance with the terms and conditions of POGO licenses has been a significant factor in the proliferation of illegal activities.

President Marcos emphasized that banning POGOs alone will not solve all the problems the country has been encountering. He called for vigilance, principled action, and a focus on the nation’s well-being from all officials, law enforcers, government workers, and citizens.

The President stressed the importance of fighting wrong and evil, stating, “Lagi po nating ipaglaban ang tama at mabuti. Lagi po nating mahalin ang Pilipinas, lagi po nating mahalin ang Pilipino.” (Let us always fight for what is right and good. Let us always love the Philippines, let us always love Filipinos.)

Moving Forward

As the Philippines moves forward with the ban on POGOs, it is essential for the government to prioritize the welfare of affected workers and implement effective measures to mitigate the economic impact.

Collaboration between the DOLE, economic managers, and business groups will be crucial in finding alternative employment opportunities and supporting the redeployment of displaced employees.

Additionally, strengthening regulatory oversight and enforcement mechanisms will be necessary to prevent the resurgence of illegal activities in the future. The government must ensure that any remaining gaming operations strictly adhere to the law and that the rights and well-being of workers are protected.

The ban on POGOs marks a significant shift in the Philippines’ approach to the gaming industry. While the decision may have short-term challenges, it presents an opportunity for the country to focus on building a more sustainable and socially responsible economy.

By addressing the root causes of the problems associated with POGOs and implementing effective transitory measures, the Philippines can move towards a future that prioritizes the welfare of its citizens and upholds the integrity of its laws and institutions.