PAGCOR to Revoke All Offshore Gaming Worker Permits

PAGCOR to Revoke All Offshore Gaming Worker Permits by Year-End Amid Nationwide Ban

In a decisive move that signals the end of an era, the Philippine Amusement and Gaming Corporation (PAGCOR) has announced that work permits for employees of offshore internet gaming licensees will be revoked by December 31, 2024. This decision follows President Ferdinand Marcos Jr.’s ban on offshore gaming operators earlier this year, marking a pivotal shift in the country’s gaming industry. Discover the implications of this ban, its impact on the industry, and the challenges PAGCOR faces as it navigates this complex regulatory landscape.

The Decision to Revoke Work Permits

PAGCOR’s announcement to invalidate all offshore gaming work permits by the end of the year is a direct response to President Marcos’s sweeping ban on Philippine Offshore Gaming Operators (POGOs). The ban, declared in July 2024, was a result of mounting pressure from senators and concerned citizens who raised alarms over the social and economic issues associated with POGOs.

President Marcos’s decision to ban offshore gaming was influenced by concerns about illegal activities, such as money laundering, human trafficking, and unregulated employment practices often linked to the industry. Despite POGOs’ substantial contributions to government revenues, the negative social impacts ultimately led to the administration’s decision to shut them down.

Initial Opposition from PAGCOR Leadership

The move to revoke permits was not without resistance. Alejandro Tengco, CEO and Chairman of PAGCOR, initially opposed the ban, highlighting the potential financial repercussions. PAGCOR, as the regulatory body overseeing gaming operations in the Philippines, has historically relied on POGO contributions as a significant revenue stream. These funds have been used to support various government programs, infrastructure projects, and social services.

Tengco expressed concerns that the ban would lead to significant job losses among both foreign and local workers employed by offshore gaming operators. He noted that thousands of jobs would be directly affected, potentially leading to an economic ripple effect in related sectors, including real estate, services, and local businesses that cater to these workers.

Despite these objections, PAGCOR ultimately aligned with the President’s directive, prioritizing the government’s stance on maintaining order and addressing the broader social concerns associated with offshore gaming.

Impact on the Offshore Gaming Sector

The revocation of work permits will significantly disrupt the offshore gaming landscape in the Philippines. The country, once considered a haven for offshore gaming operators due to its favorable regulatory environment, is now moving to dismantle the industry altogether.

The impact on the workforce will be substantial, with thousands of employees facing job uncertainty as the December deadline approaches. Both foreign and local workers will be required to exit the industry or find alternative employment as their permits become void. This transition will pose challenges not only for the workers but also for operators who have heavily invested in their Philippine operations.

Moreover, the ban is expected to trigger a broader re-evaluation of the gaming sector in Southeast Asia. Neighboring countries with more lenient regulations may see an influx of operators seeking new opportunities, potentially shifting the dynamics of the regional gaming market.

The Future of Gaming Regulation in the Philippines

As the Philippine government phases out POGOs, PAGCOR faces the challenge of realigning its strategies to maintain its financial stability. The loss of offshore gaming revenues will compel PAGCOR to explore alternative sources of income, potentially focusing more on domestic gaming operations, casinos, and other regulated activities.

PAGCOR’s commitment to upholding the law and ensuring that the gaming industry operates within ethical and legal boundaries is evident in this latest decision. However, the agency will need to address the economic void left by the absence of POGOs while safeguarding the interests of affected workers.

The decision by PAGCOR to revoke all offshore gaming worker permits by December 31 marks a significant turning point for the Philippine gaming industry. While the ban addresses pressing social and regulatory concerns, it also presents considerable challenges for the economy, the workforce, and the industry as a whole. As PAGCOR navigates this new landscape, the focus will shift towards building a more transparent, responsible, and sustainable gaming environment in the Philippines, ensuring that future growth aligns with national priorities and public interest.