Unraveling the Controversy Surrounding PAGCOR's POGO Allocation Process
Authority Pressures PAGCOR Over Collaboration with Unregistered Tax Assessor
In the bustling landscape of gambling, the Philippine Amusement and Gaming Corp. (PAGCOR) plays a pivotal role as the regulator for Philippine Offshore Gaming Operators (POGOs). PAGCOR defends the creation of designated POGO hubs, arguing that these hubs not only provide convenience and protection for workers but also ensure oversight of the industry (ABS-CBN, Aug 8, 2019). However, as the industry expands, PAGCOR's allocation and licensing processes have drawn scrutiny over concerns of transparency, accountability, and broader social impact.
Demands for Tighter POGO Regulations
Various sectors, including legislators and advocacy groups, have expressed alarm over the social costs of POGOs, alleging increased crime, illegal immigration, tax evasion, and money laundering. This has led to calls for stricter regulations, including:
- Improved Compliance and Monitoring: Pressure on PAGCOR and other agencies to tighten compliance and monitoring mechanisms for POGO licensees, focusing particularly on employee welfare, anti-money laundering (AML) laws, and tax remittance.
- AMLC Advisories: The Anti-Money Laundering Council (AMLC) has issued public advisories, warning against fraudulent activities and urging vigilance regarding documents and communication claiming to be from government agencies, highlighting the risk of money laundering in the sector (AMLC, April 30, 2025).
- Collaboration between Immigration and Law Enforcement: Initiatives to strengthen deportation protocols, such as banning layover flights for foreign fugitives involved in POGO-related crimes and increasing inspections and frontline services (BI, March 24, 2025).
Political and Public Responses
The assertion by former President Rodrigo Duterte that "POGOs are clean" faced skepticism following Senate investigations that uncovered irregularities within the industry (ABS-CBN, March 10, 2020). This skepticism has fueled ongoing debates regarding potential POGO bans or tighter regulations in the Philippines.
Addressing Key Regulatory Challenges
| Issue Area | Regulatory Actions/Proposals | Agencies Involved ||-----------------------------|--------------------------------------------------------------------------|---------------------|| Worker Freedom & Safety | Designated POGO hubs for protection and oversight | PAGCOR || Money Laundering | AMLC advisories, stricter compliance checks | AMLC, PAGCOR || Immigration & Crime | Deportation bans with layovers, inspections, enhanced frontline services | BI, DOJ, PAGCOR || Transparency & Allocation | Calls for investigation into PAGCOR processes, stricter licensing rules | Senate, Watchdogs |
In Focus: The Routine Inspection Drama
In the recent limelight, Senator Sherwin Gatchalian has raised concerns about PAGCOR's effectiveness in enforcing laws and regulations on POGOs. He pointed to the cases of Brickhartz Technology Inc and MOA Cloudzone Corp, both implicated in kidnappings yet continuing to operate. Despite Brickhartz being fined, PAGCOR has yet to receive a report regarding the actions taken against MOA Cloudzone Corp. These instances have fueled doubt about PAGCOR's ability to handle crimes efficiently, with allegations of leniency and a potential conflict of interest (CNN Philippines, Jan 15, 2023).
These contentious issues have led to demands for a thorough investigation into PAGCOR's allocation process and stricter regulations to ensure proper due diligence during the allocation of contracts of this nature. Meanwhile, concerns remain about the broader POGO industry and its ability to self-regulate and comply with tax laws.
- The demand for PAGCOR to strengthen its compliance and monitoring mechanisms for POGO licensees is growing, with a focus on employee welfare, anti-money laundering laws, and tax remittance.
- The Anti-Money Laundering Council (AMLC) has issued public advisories, urging vigilance to combat fraudulent activities and the risk of money laundering within the POGO sector.
- Senator Sherwin Gatchalian has raised concerns about PAGCOR's effectiveness in enforcing laws and regulations on POGOs, citing cases like Brickhartz Technology Inc and MOA Cloudzone Corp, which have been implicated in kidnappings but continue to operate.
- Amid these controversies, there are calls for a thorough investigation into PAGCOR's allocation process and stricter regulations to ensure proper due diligence during the allocation of POGO contracts, with concerns about the broader POGO industry's ability to self-regulate and comply with tax laws also at the forefront.
