PAGCOR to Start Phasing Out Offshore Gaming Operators

PAGCOR to Begin Winding Down Offshore Gaming Operators in October

The Philippine Amusement and Gaming Corporation (PAGCOR) is set to start phasing out offshore gaming operators next month, following a directive from the country’s top leadership. This move signals a significant shift in the country’s stance on offshore gaming, aiming to tighten regulations and address growing concerns around the sector. With thousands of jobs and millions in revenue at stake, the decision marks a critical juncture for the Philippines’ gambling landscape.

PAGCOR’s Strategic Shift: Phasing Out Offshore Gaming

PAGCOR Chairman and CEO Alejandro Tengco confirmed during a public hearing of the Committee on Games and Amusement that the winding down of offshore gaming operations will commence in October. This decision is contingent on an executive order expected from President Ferdinand Marcos Jr., which will formally mandate the start of the phase-out.

“Two months after the State of the Nation Address (SONA), we had 46 licensed operators. Today, we only have 41,” Tengco noted. He emphasized that PAGCOR has already taken action against several operators, shutting down those found in violation of existing regulations. “That means five of those that we canceled were gone because of numerous violations,” he added.

Gradual Cancellation of Work Visas

To ensure a smooth transition and minimize disruptions, PAGCOR will gradually reduce offshore gaming operations, with a particular focus on managing the workforce impacted by the closures. Jessa Mariz Fernandez, PAGCOR’s Assistant Vice President, stated that the cancellation of work visas will be executed in batches to steadily wind down operations before the end-of-year deadline.

The planned exit of offshore gaming operators follows growing scrutiny of the industry, which has faced criticism for alleged links to illegal activities, including human trafficking and money laundering. The crackdown is part of the government’s broader efforts to uphold law and order, as well as to protect the integrity of the country’s gaming sector.

Impact on the Workforce: Government Pledges Support

The Department of Labor and Employment (DOLE) has been called upon to address the looming unemployment crisis for the approximately 28,500 Filipinos working in the sector. Undersecretary Felipe Egargo Jr. confirmed that DOLE is preparing support measures for affected workers, although details on specific assistance programs remain unclear.

While the immediate economic impact of winding down offshore operators is expected to be significant, the government remains focused on protecting workers and ensuring a responsible transition. Efforts will likely include job placement assistance, skills training, and other initiatives designed to help displaced workers reintegrate into other industries.

A Broader Regulatory Overhaul

This move is part of a larger regulatory overhaul intended to curb illegal activities associated with offshore gaming operations. PAGCOR’s strategic pivot reflects the growing pressure on gaming regulators worldwide to enforce stricter controls and foster greater transparency within the industry.

Moreover, the crackdown on offshore gaming aligns with President Marcos’ broader vision of modernizing the country’s gaming and entertainment sector while prioritizing public safety and welfare. By eliminating problematic operators, PAGCOR aims to bolster the integrity of the domestic gaming environment and enhance the industry’s overall credibility.

Navigating the Future of Philippine Gaming

The decision to phase out offshore gaming operators marks a pivotal moment for the Philippines’ gaming industry. As PAGCOR moves forward with implementing these changes, the focus will remain on maintaining regulatory compliance, supporting affected workers, and reshaping the gaming landscape to better align with national interests. While the transition may pose challenges, the long-term goal of creating a safer, more sustainable gaming environment underscores the government’s commitment to responsible gambling practices.