Philippines Targets PIGOs After POGO Ban

Are Philippine Inland Gaming Operators (PIGOs) the next target for lawmakers after the controversial POGO ban?

Senate President Francis Escudero is calling for a thorough review of PIGOs, arguing that they could pose similar risks to the now-banned POGOs.

With POGOs eliminated due to their links to money laundering, human trafficking, and fraud, the debate now shifts to whether PIGOs should face the same fate.

Will the Philippine government tighten its gambling laws further, or will regulation prevail over prohibition?

Philippines Reviews PIGOs After POGO Ban—Is Another Crackdown Coming?

Key Points:

1. Philippines Senate Calls for PIGO Review After POGO Ban

   • Senate President Escudero warns that PIGOs may cause the same harm as offshore gaming operators.
   • Concerns include social risks and potential regulatory loopholes.

2. Government Faces Tough Decision: Regulation or Elimination?

   • Industry experts argue that a gambling ban would harm government revenue.
   • PAGCOR contributes billions in taxes and funding for social programs.

3. Black Market Risks Could Rise if PIGOs Are Banned

   • Analysts warn that banning PIGOs may push gambling underground.
   • Stronger regulation is seen as a more effective solution.

Escudero Warns: PIGOs May Be Just as Harmful as POGOs

Senate President Francis Escudero has renewed concerns over PIGOs, arguing that they could bring similar issues to those that led to the banning of POGOs in 2023.

“The ill effects we wanted to avoid with POGOs are likely present in PIGOs, which directly affect Filipinos instead of foreigners,” Escudero stated.

POGOs (Philippine Offshore Gaming Operators) were banned under President Ferdinand Marcos Jr. due to links to money laundering, human trafficking, and organized crime.

While POGOs targeted international customers, PIGOs cater exclusively to Filipino players, raising concerns about gambling addiction, fraud, and potential regulatory gaps.

Escudero acknowledged that PIGOs generate substantial revenue for the Philippine Amusement and Gaming Corporation (PAGCOR) but questioned whether financial gains outweigh social risks.

Gambling Ban Unlikely—Experts Push for Regulation Instead

While Escudero has advocated for an outright gambling ban, industry experts believe such a move is unlikely and impractical.

Jeri R. Alfonso, an equity research analyst at Unicapital Securities, noted that PAGCOR is the third-largest source of government revenue after the Bureau of Internal Revenue and the Bureau of Customs.

In 2024 alone, PAGCOR contributed ₱4.59 billion ($79.6 million) in cash dividends to state funds.

“Shutting down online gambling entirely would deal a heavy blow to government funds. A full-on ban is unlikely,” Alfonso explained.

Similarly, China Bank Capital Managing Director Juan Paolo E. Colet warned against eliminating PIGOs, arguing that a ban would push gambling into the black market.

“Without a legal alternative, Filipino players will turn to underground gambling, which would be worse for everyone,” Colet stated.

“The better approach is to regulate, not eliminate.”

Rising Concerns Over PIGOs and Online Gambling

The push to review PIGOs follows a broader crackdown on online gambling in the Philippines.

• In February 2024, Senator Risa Hontiveros urged the Marcos administration to suspend all forms of online gambling, citing concerns that POGO operators had infiltrated the domestic industry.
• PAGCOR first legalized PIGOs in 2018, two years after introducing POGOs, to boost tax revenue and create a regulated online gambling framework.
• Despite legal oversight, critics argue that PIGOs require stronger consumer protections and stricter financial regulations to prevent potential abuse.

Will the Philippines Ban PIGOs or Strengthen Oversight?

As the Philippine government evaluates its next steps, the fate of PIGOs remains uncertain.

• Senate President Escudero is calling for a full review, warning that PIGOs may pose similar risks as POGOs.
• Experts argue that a complete ban is unlikely, as it would hurt government revenue and push gambling underground.
• Regulation, rather than elimination, is seen as the more practical approach, ensuring player protections while maintaining a strong legal market.

With lawmakers and industry leaders divided, the future of PIGOs will likely depend on whether the government prioritizes revenue generation or stricter consumer safeguards.