Pagcor suspends declaration hub amid illegal business crackdown

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The Philippine Entertainment Gaming Company (Pagcor) announced it will no longer allow the establishment of a "hub" for Filipino offshore gaming operators (POGO). The new policy was revealed Wednesday by Pagcor chairman and CEO Alejandro Tengco in a Senate investigation into illegal POGO activities.

In July last year, Pagcor introduced a new regulation for POGO, now officially called "Internet Gaming Licenses" (IGL).

Mr Tengco (file photo) stressed that the regulator would strictly monitor the remaining 43 licensed POGO companies in the country, and deploy a "24/7 team" to oversee their operations.

"Hopefully it [can deter misconduct], and if we find something, we can immediately call the police," the Philippine daily Daily Inquirer quoted local media as saying.

Tengko described the ban on new pogo hubs as part of an ongoing "improvement" of regulatory oversight. "We are putting out certain guidelines. We are already banning hubs," he said.

According to available media reports, Mr Tengco did not clarify what the POGO hub meant.

The declaration of a ban on pogo hubs comes after growing calls from various factions to ban the pogo altogether. Mr. Tengco noted that Pagcor would not oppose any decision by Congress and President Ferdinand Marcos Jr. to enforce such a ban.

Pagcor's previous statements indicated that the sector has faced criticism due to issues such as tax avoidance, illegal employment and non-payment of appropriate fees, which has tarnished its reputation.

The idea of banning the declaration license has yet to be formally discussed among cabinet officials, according to remarks by National Economic Development Agency (NEDA) Minister Arsenio Balisakan on Tuesday.

During a Senate hearing, Mr. Tengko said former presidential spokesman Harry Roque lobbied for PGO company Lucky South 99 Inc in July 2023. The company, which recently faced raids on human trafficking and other illegal activities, owed US$500,000 in "defaulters."

Mr Tengco did not pressure Mr Roque to address the Lucky South 99's issue, but made it clear that his name was included in Mr Pagcor's licence reapplication, which was due to expire in October last year.

Earlier in the day, Pagcor officials said a former government official had lobbied for licensing illegal PGO operations that had not been identified.

In response, Mr. Roque issued a statement denying any advocacy for illegal PGO or involvement with Lucky South 99. "I make it clear that I did not agree with the inclusion of my name in the submission by Lucky South Pag regarding the renewal of the license, nor was I informed about the inclusion of my name," he claimed.

BY: 홀짝게임