Business groups support

POGO phaseout
By JON VIKTOR D. CABUENAS, GMA News
Published October 25, 2022 4:03pm

Business groups and stakeholders on Tuesday expressed their support for

the phaseout of Philippine Offshore Gaming Operators (POGOs), citing its
“social and reputational” costs to the country.

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In a joint statement, the Foundation for Economic Freedom (FEF), the

Makati Business Club (MBC), and the Management Association of the
Philippines (MAP) cited the crimes supposedly associated with POGOs.

“We fully support the Department of Finance’s (DOF) push to phase out all
POGO operations, and urge our legislators and the Executive Department
to take all actions necessary to execute in an orderly way,” the statement
read.

The Department of Finance (DOF) has shared a similar sentiment, with

Finance Secretary Benjamin Diokno earlier saying the industry has already
been disallowed in other countries such as China and Cambodia.

“The social and reputational costs of government sponsorship of

operations that are globally frowned upon far outweigh any economic
benefits,” the statement read.

“Conflicting mandates and the lure of corruption have rendered it and

other involved government agencies incapable of effectively regulating
POGOs,” it added.
Data from the Bureau of Internal Revenue (BIR) show that revenues from
POGOs have hit P4.438 billion from January to August this year, higher
than the P3.91 billion collected for the full year 2021.

Last year’s collection fell short of the P32.1-billion goal, in line with
Republic Act 11590 or the POGO Law, signed in September 2021 by then-
President Rodrigo Duterte.

“The total ban will only result in temporary economic stains, as opposed
to the enduring socio-economic consequences and heavier disruption if
we do not act now,” the business groups said.

“The Chinese government has been quite categorical in its objections to

POGO, which they characterized as harming not only China’s interest and
China-Philippines relations but also hurt the interests of the Philippines,”
they added.

Finance Undersecretary Bayani Agabin earlier this month said the country
can recover the potential losses from the exit of POGOs in other
industries with high value added.

Real estate services firm Leechiu Property Consultants said the country
stands to lose over P100 billion should the POGO industry be forced out of
the country.

The Association of Service Providers and POGOs (ASAP) also warned that
some 23,000 Filipinos would lose their jobs if the operators are banned
from the country. —KBK, GMA News