POGO: The Truth About Online Gaming in Philippines

When it comes to the Philippines and the iGaming industry in this country, marketers, operators, and all the Gambling professionals usually mention POGO Philippines. The Philippine Offshore Gaming Operators — or POGO shortly — are companies that have the Philippine Amusement and Gaming Corporation’s (PAGCOR) seal of approval to run online Gambling and Betting services abroad. These operators have become a major force in the iGaming industry.

POGOs have become a key part of the ecosystem in the Philippines. They offer a gateway for operators looking to tap into the Philippines’ business-friendly environment, its skilled workforce and the right regulations to expand their online gaming operations worldwide.

What are POGOs? In this article, we will tell you all the key features of POGO, how it works, the influence it has on the iGaming industry, and why it is banned.

What is POGO in the Philippines: History

POGO really took off in the mid-2010s when the Philippine government decided to regulate the offshore gaming sector. By making operators get licenses, the government was able to ensure everyone was playing by the rules. To control all the operators it was decided to collect taxes and fees. That move put the Philippines firmly on the map as a destination for offshore gaming operators.

Key milestones in POGO history include:

• In 2016, PAGCOR launched its POGO licensing framework. That was the foundation on which the industry would grow;
• POGO revenue hit its peak in 2019, pumping billions of pesos into the Philippine economy;
• The COVID-19 pandemic and tougher tax policies knocked the industry back in 2020 and 2021. But by 2023, reforms and enforcement efforts had revitalized the industry, drawing in new operators.

POGO Philippines Meaning: How it Operates

What is POGO in the Philippines, and why is it so important? POGOs are regulated by the Philippine Amusement and Gaming Corporation who ensures that these Gambling and Betting companies follow strict rules and ethics. To get a license, operators must show financial stability, transparency in their operations and comply with anti-money laundering regulations. PAGCOR also monitors these operators to maintain the industry’s credibility and fair play.

According to the law, only foreign users outside the Philippines can participate in online Gambling and must be 21 years old. Surprisingly, most of the participants in these iGaming platforms are Chinese as Gambling and Betting are illegal in this country. 50,000 people from China are employed by Manila based POGOs.

The Chinese embassy is actively monitoring the welfare of its citizens working in POGOs to ensure they are treated fairly, and that laws are followed.

Economic and Business Impact of POGO

POGOs get paid from licensing fees, taxes and gaming related activities. At its peak the POGO industry was a big contributor to the Philippine economy, generating billions of pesos in taxes and regulatory fees. It also created thousands of jobs in IT, customer support and operations which further boosted the economy and development of the country.

POGO Challenges and Controversies

Philippine Offshore Gaming Operators have raised many concerns, especially on their link to various illegal activities. Here are the drawbacks:

• Illegal Activities: Many POGOs are linked to criminal operations, including financial scams, money laundering and human trafficking. This undermines legitimate businesses and perpetuates a culture of corruption;

• Violence and Crime: The Philippine National Police (PNP) has reported numerous cases of kidnapping and torture of Chinese nationals working in POGOs. This creates fear and insecurity not only for employees but for the whole community;

• Victim Reluctance: Many victims of POGO-related crimes refuse to file charges against their perpetrators. This is due to fear of retaliation or belief that the legal system will not protect them, thus perpetuating a cycle of violence and impunity;

• Strain on Law Enforcement: The POGO issues put a huge burden on law enforcement agencies. Resources are stretched thin as police work on cases with little success due to victim cooperation and complexity of the crimes;

• Social Impact: POGO-related activities affect local communities, increasing crime rates and social unrest. This results in negative perception of foreign workers and further strain on community relations.

POGO Philippines is linked to money laundering, illegal recruitment and social issues. To address these problems, PAGCOR and other government agencies have implemented stricter monitoring and enforcement. A more transparent and ethical industry is what they promote.

Impact of POGO on Relations with China

In 2019, Philippines and China relations soured due to POGO. China is not happy with its citizens who make up the majority of workers and gamblers. All forms of Gambling are illegal in this country and online casinos can only be played outside the Philippines.

In August 2019, the Chinese government told the Philippines to stop local iGaming. POGO companies that illegally hire and abuse Chinese citizens should be punished and victims protected.

In September 2019, at a Malakanyang press conference, Duterte refused the request saying POGO is good for the Philippines economy.

POGO in 2025: The Fall of POGO

In the middle of 2024, POGO Philippines was banned by the authorities of the country. The decision was made due to the many scandals that have been happening over the years. Let’s take a look at the background.

At the beginning of 2024, law enforcement agencies started to focus on POGO. The Criminal Investigation and Detection Group (CIDG) in partnership with the Presidential Organized Crime Unit (PAOCC) raided the POGO centers.

So during these raids a massive rescue operation was uncovered for 800 workers including 500 foreign nationals of which 427 were Chinese. This company was allegedly involved in illegal activities including surveillance and hacking of government websites.

The second raid resulted in the arrest of 186 Filipino and foreign workers, 4 of whom claimed to be victims of kidnapping.

Finally on July 22, 2024, during his State of the Nation Address (SONA) President Ferdinand Marcos Jr. announced the ban on POGOs.

This step was necessary for the Philippines, as the decision became part of the fight against corruption and criminal activity rampant in iGaming. In addition, the ban on POGO has helped to correct the negative international perception of the Philippines as a center of illegal activities.

What Happened After the POGO Ban?

It’s necessary to highlight the following events that occurred after the ban of POGO in the Philippines:

• Foreign workers had to leave the Philippines by September 26, 2024. The deadline was later extended until the end of 2024;
• DigiPlus and RGB assured stakeholders their online gaming services will not be affected by the ban;
• PAGCOR asked the government to exempt BPOs servicing US and UK operators from the ban;
• A multi-committee panel, House Resolution 1880, was formed to probe the links between former President Duterte’s anti-drug campaign and POGOs;
• Indonesian Embassy requested a raid on the POGO hub in Lapu-Lapu City and rescued 162 foreign nationals including minors;
• DOLE held a job fair for ex-POGO employees at Ayala Mall Manila Bay with around 70 employers;
• President Marcos said all POGO operations must stop by December 31, 2024;
• Island Cove, one of the largest POGOs, was closed, previously employing 30,000 workers in 57 buildings.