Could POGOs migrate south? Philippine officials warn island nation

Philippines officials are warning Timor-Leste to steer clear of former Philippine Offshore Gaming Operators (POGOs). Philippine president, Ferdinand Marcos, banned POGOs in July.

During a state visit, Philippine justice secretary Jesus Crispin Remulla on Wednesday (2 October) warned officials that POGOs could relocate to the country, at the southernmost tip of the Malay archipelago.

In a follow-up statement, the department of justice (DoJ) said Timor-Leste is “one of the possible destinations where POGO operations could transfer”. Remulla advised officials there of “the potential socioeconomic and security challenges” that POGOs could bring.

POGOs banned, foreign workers ordered to leave
In his July state of the nation address, Marcos banned POGOs due to reports of widespread crime.

“Disguised as legitimate entities, their operations ventured into illicit areas furthest from gaming,” the president said. Alleged crimes included “financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture – even murder.”

To the cheers of lawmakers, Marcos then outlawed the industry and ordered the Philippine Amusement and Gaming Corporation (Pagcor) to “wind down operations” by the end of 2024.

The bureau of immigration has since downgraded the work visas of foreign-born POGO staff. Already, more than 3,000 have left the Philippines. The rest have until 15 October to voluntarily surrender their working papers.

Island aspires to be next big offshore gaming hub
Timor-Leste has positioned itself as the newest centre of offshore gaming, with the support of President Jose Ramos-Horta.

A new industry body, the Virtual Gaming Association of Timor-Leste (VGA), has urged the government to issue both B2C and B2B licences. Regulation will be modelled on that in Malta and the Isle of Man. The first round of licences were expected to be issued by the end of the year.

VGA chairman Richard Leather has said the association will uphold “best practices in online gambling regulation and licensing. Moreover, we look forward to speaking with responsible operators and suppliers looking for a serious, safe and secure jurisdiction for their business.”

If the Philippines are an example, POGOs have no place in that market. According to the Philippine DoJ, Remulla has warned Timor-Leste “to critically examine the broader implications of welcoming POGOs and how these activities might affect its domestic affairs.”

In related news, while Ramos-Horta supports igaming, he rejects suggestions the island will host land-based casinos.

“[Gambling] is not something that interests me unless it targets foreigners,” he told a Macau news outlet. “I don’t want some poor Timorese to lose everything in gambling with all the human and sometimes tragic consequences. But if foreigners want to gamble online and Timor offers an online gambling possibility, fine.”