Philippines Orders Total Shutdown of Offshore Gaming Operators by December 31st Following New Presidential Executive Order

In a decisive move, Philippine President Ferdinand Marcos Jr. has signed Executive Order 74, which enforces a comprehensive ban on all Offshore Gaming Operators (POGOs) in the country, requiring them to cease operations by December 31st. Although the order was signed on November 5th, it was only announced today by Malacañang Palace. The President’s declaration echoes his previous commitment during the State of the Nation Address in July, where he emphasized his intention to ban POGOs as part of his administration’s strategy to curb rising criminal activities associated with offshore gaming.

The Presidential Communications Office today released a statement quoting President Marcos Jr., who asserted that “The State has the paramount duty to safeguard national security, maintain public order, uphold the rule of law, protect the safety of its citizens, and ensure the integrity of the social fabric of the nation.” The rising criminality linked to both licensed and unlicensed offshore gaming operations has led to an urgent focus on the POGO sector and its activities.

Executive Order 74 provides clear definitions and regulations for a wide spectrum of entities associated with offshore gaming. The ban includes POGO licensees authorized by PAGCOR (the Philippine Amusement and Gaming Corporation), POGO Gaming Agents who act as representatives for offshore-based licensees, and POGO service providers, including Philippine-based business process outsourcing firms that support offshore gaming. This encompasses businesses offering strategic, IT, live-streaming, gaming software, and other technical support to POGO operations.

The scope of this ban covers online games of chance, including live-streamed e-casino games, random number generator (RNG) games, and online sports betting, which are exclusively directed at foreign players located outside the Philippines. It also applies to IGLs (internet gaming licensees) and other entities, such as local agents representing foreign IGL licensees and authorized gaming content providers.

Executive Order 74 targets both licensed POGO operators and any entities operating without the proper permits, classifying unlicensed operations as “illegal gambling entities.” License applications and renewals are also halted under this order, requiring all POGO operations to wind up their activities by the year’s end, with no renewals permitted.

Addressing employment and economic impacts, the Executive Order establishes initiatives to help displaced POGO workers find new jobs as swiftly as possible. The order instructs the creation of working groups to dismantle offshore gaming operations, assist affected employees, and enable local governments to enforce the ban effectively within their jurisdictions. Additionally, a reporting mechanism has been established to monitor any suspect activities.

The order extends to the private sector, which is encouraged to ease the financial burden on POGOs facing termination, including waiving penalties, interest, and other charges related to ending contracts for property leases, janitorial services, internet, security, and utility services.

Justifying the POGO ban, the Executive Order emphasizes that offshore gaming operations bring “high reputational risks” to the Philippines, which deter foreign investment and tourism. The order also notes that POGOs contribute to “increased crime rates, social instability, and exploitation of vulnerable people associated with them,” undermining the government’s efforts to promote the Philippines as a secure and sustainable destination for tourism and investment.

By fLEXI tEAM