Filipino Lawmaker Calls for Urgent Review Of PIGOs

Filipino President Ferdinand Marcos Jr. recently issued Executive Order No. 74, banning Philippine Offshore Gaming Operators (POGOs) due to their association with crimes like money laundering, fraud, and human trafficking. 

The order, effective December 31, 2024, aims to protect national security and public welfare while addressing the negative social and economic impacts of POGOs. Meanwhile, attention has shifted to Philippine Inland Gaming Operators (PIGOs) catering to local players. 

Senate President Francis Escudero has called for an urgent review of PIGOs by the regulator, citing concerns over their potential to harm Filipino society, including through gambling addiction and financial instability. Critics argue that while PIGOs generate significant revenue, they may also perpetuate issues similar to those linked to POGOs.

The debate highlights the challenge of balancing economic benefits with social responsibility in the Philippines' gaming industry.

 What Are PIGOs?

PIGOs (Philippine Inland Gaming Operators) are gaming operators licensed by PAGCOR that allow existing land-based casinos, e-gaming, and sports betting operators to offer online gaming services to registered Filipino players within the country.

Characteristics differentiating PIGOs from their offshore counterparts include:

1. For Local Players Only: Unlike POGOs, which serve foreign players, PIGO operations only cater to Filipino residents and allow Filipino players to access casino games, slot machines, e-bingo, and sports betting from their mobile devices or computers.
2. Tied to Existing Land-Based Operators: Only licensed casinos, e-game outlets, or sportsbooks can apply for a PIGO license.
3. Regulated by PAGCOR: Operators must follow strict guidelines, including player verification, anti-money laundering protocols, and responsible gambling measures.

PIGOs have become increasingly popular in the Philippines as local players have relished having access to these games of chance.

 Growing Concern Over PIGOs

There is rising concern within government circles that PIGOs, which were supposed to fill the revenue and employment void left by the departure of POGOs, are causing similarly serious problems, fuelling demands for the same intense scrutiny to be applied. 

The Marcos administration was obliged to ban POGOs - mainly because their focus had veered away from just gaming to becoming a hotbed for organised crime, with serious crimes such as tax evasion, money laundering, torture and even murder being commonplace.

As part of the review of PIGO operations, Escudero requires a detailed listing of their tax payments and ownership structures, plus police reports on crimes committed by addicted gamblers to provide the public with an accurate picture of their impact. 

Escudero acknowledged that while the revenues generated were impressive - total online bets could reach as much as P600 billion to P1 trillion a year, the evaluation of PIGOs should go beyond mere “counting pesos and cents” and include the potential harm to Filipinos.

Without the accurate data requisitioned by the review, the concerns over PIGOs are anecdotal, and no direct link between these online platforms and increased criminality or addiction should be inferred before the results are in.

 Senate President Calls for Review

Senate President Francis Escudero has called for an urgent review of PIGOs by the regulator, citing concerns over their potential to harm Filipino society, including gambling addiction and financial instability.

Expressing his concern, the lawmaker was quoted as saying:

Quote

“I would like to see the government practice the same attention to detail in assessing PIGO as it did with POGO, an anomaly does not cease to be one because Filipinos are doing it.”

Critics argue that while PIGOs generate significant revenue, they may also perpetuate issues similar to those linked to POGOs.