Philippines PAOCC Warns Offshore Gaming Operators

The fight against illegal offshore gaming in the Philippines takes a concerning turn with new tactics emerging.
According to the PAOCC, some operators now pose as legitimate BPO companies to evade detection and regulation.
These tactics threaten the reputation of legitimate industries while undermining efforts to combat organized crime.
Discover how the Philippines is intensifying its crackdown on illegal operators and what lies ahead for enforcement.

Philippines Cracks Down on Offshore Gaming Operators Disguising as Legitimate Businesses

Key Points

1. Offshore gaming operators disguise as BPOs to evade the Philippine ban under Executive Order 74.
2. Authorities uncover smaller-scale operations scattered across regions, posing new challenges for enforcement.
3. DILG calls on mayors to increase inspections and revoke licenses for businesses engaging in illicit activities.

The Philippines is doubling down on its battle against illegal offshore gaming operators as they evolve new strategies to evade enforcement. Winnie Quidato, director of the Presidential Anti-Organized Crime Commission (PAOCC), recently revealed that some offshore gaming entities are disguising themselves as business process outsourcing (BPO) companies to circumvent the ban imposed by Executive Order 74.

Guerrilla Tactics in Gaming Operations

Quidato disclosed these findings during a Senate Committee hearing on illegal offshore gaming activities. He noted that once-massive offshore gaming operations have fragmented into smaller groups, making them harder to detect.

“Big offshore gaming companies have broken down into smaller groups. Some even brand themselves as BPOs,” said Quidato.

These “guerrilla operators” now operate with as few as 10 to 20 employees, often hidden in residential areas. For instance, a recent raid in Parañaque revealed that 45 houses in one subdivision were being used by these illicit operators.

This shift from large-scale operations to smaller, decentralized setups complicates enforcement, especially as these groups spread operations to the Visayas and Mindanao regions.

The Threat to Legitimate Industries

The tactics of these offshore gaming operators risk tarnishing the reputation of the legitimate BPO industry, a critical pillar of the Philippine economy. Senator Risa Hontiveros emphasized that the BPO sector, much like overseas Filipino workers (OFWs), is a top revenue generator for the government.

“BPOs are among the highest revenue earners. These illegal operators pose a threat to this vital industry,” Hontiveros stated.

Authorities are urging a careful balance between enforcement and protecting the integrity of legitimate businesses.

Role of Local Government in Combating Illicit Activities

The Department of the Interior and Local Government (DILG), led by Jesus Crispin Remulla, has called on mayors to increase vigilance. Local officials have the authority to suspend or revoke permits for businesses found violating laws.

Remulla highlighted a case in Lapu-Lapu City, where a supposed restaurant was exposed as a front for illegal offshore gaming operations. He urged local governments to conduct routine inspections and ensure businesses operate within their declared purposes.

“It is up to the mayors to inspect establishments and confirm they comply with the law,” Remulla emphasized.

Challenges and Next Steps

The PAOCC and DILG plan to coordinate with other government agencies to intensify the crackdown. The scattered and covert nature of these operations presents significant challenges, but targeted enforcement efforts are already underway.

Protecting the Economy and Public Image

The growing ingenuity of illegal gaming operators not only challenges law enforcement but also risks undermining the good reputation of legitimate industries, such as BPOs and tourism-related businesses. Maintaining public trust and economic stability requires a proactive and unified response from all sectors.

The Philippines faces an evolving battle against illegal offshore gaming operators as they adapt their methods to evade enforcement. By disguising themselves as BPOs or legitimate businesses, these operators endanger the integrity of vital economic sectors and strain the country’s regulatory resources.

As local governments and national agencies like the PAOCC intensify their efforts, the challenge lies in staying ahead of increasingly sophisticated tactics. Collaboration between government, law enforcement, and legitimate industries is essential to rooting out these illicit operations.

The path forward demands vigilance, accountability, and innovation to ensure the Philippines can uphold its commitment to fairness, compliance, and economic growth.