Experts told the South China Morning Post that ex-POGOs are moving to new jurisdictions following a government crackdown.

Philippines No Longer an Option for Illegal Operators

POGOs were ordered to shut down by President Bongbong Marcos in July 2024, during his State of the Nation Address.

Since then, officers have been hunting operators who continue to run gambling-related sites and apps.

In October of last year, the government ordered foreign passport-holding POGO employees to voluntarily downgrade their visas. Those refusing to do so were threatened with deportation.

Filipino police have since followed up with arrests. Last month, police spokespeople announced that the force had deported 100 Chinese nationals to Shanghai, China, after a raid on an illegal gambling network.

Deportations to China

In February this year, officials said they deported 91 Chinese nationals to Xi’an. This followed a raid on an illegal POGO operating out of a commercial building in Parañaque City on January 8, which saw police arrest 450 people.

But officials claim that many operators are instead choosing to move abroad, where they try to lure Filipinos into working for them.

Immigration staff told reporters that they stopped four Filipinos bound for Hong Kong at Ninoy Aquino International Airport, Manila, on July 6.

After questioning the quartet, immigration officers said they found discrepancies in their statements.

They later discovered that the four individuals were actually heading to Pakistan. At least one of the quartet is a former POGO employee.

This same individual, officers said, was recruited by a Chinese former employer who used to work in the POGO sector but has since relocated overseas.

Melvin Mabulac, an official from the Bureau of Immigration, last week claimed that this was the first confirmed case of Filipinos traveling to Pakistan to work for gambling operators.

Mabulac said his bureau was now investigating to see if former POGOs are using multiple exit strategies to smuggle Filipino workers out of the country.

The bureau believes that some would-be gambling firm employees pretend to be taking legitimate vacations. Others use illegal exit corridors in the Southern Philippines.

Former POGOs may follow in the footsteps of trafficking syndicates in Cambodia, Myanmar, and Thailand.

These syndicates typically use overland exit points near Palawan, Zamboanga, and Tawi-Tawi, rather than airports.

“We are looking into the possible new destinations of [people who are] now transferring to Pakistan,” Mabulac said.

Social Media Snares

Earlier this year, the Bureau of Immigration said that “scam hubs abroad operating in the guise of online gambling or call centers continue to recruit Filipinos via social media platforms.”

POGO-themed scam operations have sprung up in the Philippines since the turn of the century. Many of these operations also mastermind crypto-themed scams, police have warned.

Alexander Ramos, a former undersecretary and executive director of the Cybercrime Investigation and Coordinating Center, said he believed many trafficking networks in Myanmar, Cambodia, Thailand, and Pakistan were related to former POGOs.

“It’s easier for them to [move] their operations overseas at this point,” Ramos said.

“We’re seeing that this could boom in South Asia and Africa, as their systems have not yet been widely exploited.”

‘Natural Progression’ for POGOs Moving to Pakistan

At their height in 2018, some 300 POGOs operated in the Philippines. Their annual revenues reached a peak of over $116 million in the same year.

Many Chinese-run online gaming companies used the POGO system to set up shop in Filipino special economic zones (SEZs).

Officials think over 9,000 former POGO workers continue to reside in the Philippines.

Jan Chavez-Arceo, a national security fellow of the Philippine Council for Foreign Relations, said moving to Pakistan was “a natural progression” for illegal gambling operators.

Earlier this month, the Philippine Amusement and Gaming Corporation ordered gambling firms to take down gambling billboards by August 15.

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The Philippine News Agency reported that the Philippine Amusement and Gaming Corporation (PAGCOR) has told gambling licensees, suppliers, and venue operators they must dismantle or remove advertising materials from public spaces by August 15.

The ban will apply to all billboards and out-of-home (OOH) gambling advertisements on public streets. It will also apply to ads displayed on public transport vehicles, such as trains, buses, jeepneys, and taxis, PAGCOR said.

Gambling Billboards Must Go, Says PAGCOR

The PAGCOR move is not a blanket ban. The regulator said that it will issue permits to institutional and responsible gaming campaigns in the future.

But advertisers and gambling firms have also been ordered to send PAGCOR an inventory of their existing billboard and wallscape advertisements by July 16.

These inventory lists must include details about the size, material, location, rental contract expiry dates, and Ad Standards Council permit numbers of all existing ads.

PAGCOR said it would punish non-compliant firms. It also threatened action against gambling firms who replace dismantled advertising boards with new gambling-related materials.

The regulator’s Chairman and CEO, Alejandro Tengco, said: “While PAGCOR is mandated to regulate the gaming industry and generate revenues for nation-building, we do not want to encourage a culture of gambling addiction. Regulating excessive and pervasive gambling advertisements is a critical step in protecting vulnerable sectors of society, especially the youth.”

The move comes just days after the gaming regulator said it would welcome lawmakers’ efforts to impose stricter regulations.

Senators Want Wider Bans

PAGCOR was responding to a draft law sponsored by Senator Sherwin Gatchalian. The bill proposes banning the use of digital wallets on online gambling platforms.

The offices of the President announced this month that the Department of Information and Communications Technology has blocked access to 7,000 unauthorized online gaming sites.

It said the sites were all identified by PAGCOR. The President’s office said the government would do what it could to stamp out unlicensed online gaming platforms.

A spokesperson urged members of the public to refrain from promoting illegal websites through word of mouth or on social media pages.

A separate draft bill, authored by the former Senate President Juan Miguel “Migz” Zubiri, seeks to go a step further. The Zubiri bill proposes banning all forms of online gambling activity in the Philippines.

Zubiri’s bill proposes outlawing “digital betting platforms, mobile applications, and websites that allow users to place wagers through phones, tablet PCs, and computers.”

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In a Senate press release released late last week, Senator Juan Miguel “Migz” Zubiri was quoted as stating that he would unveil a bill named the Anti-Online Gambling Act of 2025.

Zubiri was first elected to the Senate in 2016. He served as the Senate President of the Philippines from July 25, 2022, to May 20, 2024.

His bill seeks to ban all forms of online gambling activity in the Philippines. The proposal would see Manila place a blanket ban on “digital betting platforms, mobile applications, and websites that allow users to place wagers through phones, tablets, and computers.”

Will Philippines Senate Back Blanket Betting Ban?

The draft law would also require IP providers and mobile network services to block user access to illegal domestic or overseas betting platforms that target Filipinos.

IP providers and mobile carriers who fail to comply with the draft law would be fined. Repeat offenders could face suspension orders, the draft bill notes.

Zubiri called online betting a “silent epidemic,” and said that gambling in the Philippines “now looks like a kid with a phone under the covers at 2 AM, losing the family’s grocery money on an online casino site.”

The Senator said that Filipino youth were now particularly vulnerable to gambling addiction. He called on fellow senators to back his bill.

On July 8, Manila Bulletin quoted Zubiri as urging: “Let’s not earn [money] at the expense of our people. We passed a law taxing Philippine Offshore Gaming Operator (POGO) operations in the country, and it did not stop the [spread of this] moral scourge to society. […] Children are learning to lie, to steal, to cheat just to fund their next bet.”

He said that the government’s attempt to “shut the doors on POGOs for the damage they caused” had not stopped an even more dangerous problem from creeping into Filipino homes.

Government Favors Taxes and Regulations Over Ban

The government currently looks unlikely to back Zubiri’s proposal. Media outlets have reported that the Department of Finance is instead considering rolling out new taxes and stricter regulations for the online gaming sector.

Manila Bulletin also reported that Malacañang, the Presidential Palace, “would not oppose any measure seeking to address gambling addiction among Filipinos.”

Such measures, it noted, could include the imposition of new taxes on online gambling operators.

Palace Press Officer and Communications Undersecretary Claire Castro said that President Bongbong Marcos was “aware that the new tax would restrict online gambling.”

Meanwhile, another senator has also proposed alternatives to an outright ban. A draft bill launched by Senator Sherwin Gatchalian proposes the prohibition of betting games that use electronic wallets.

Similar proposals have also been floated in the lower parliamentary house in recent weeks. Gatchalian’s bill also calls for gambling platforms to adhere to minimum cash-in thresholds of $177.

The regulatory Amusement and Gaming Corporation states that it is aware of the rise in illegal betting platforms. It claims it remains fully committed to combating the rise of unregistered online betting services.

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The call was made by Salvador Panelo, former Legal Counsel to the President. Roque would return to face criminal allegations linking him to an unlicensed offshore gaming business.

Roque, who has recently fled to The Hague, where he is now seeking asylum, claims he is being subjected to political persecution.

Panelo has publicly dismissed these claims, stating that merely criticizing the Marcos administration is not sufficient grounds for such an assertion. “If he truly believes he is innocent, he should come home and defend himself,” Panelo said during a televised interview in the Philippines.

The charges stem from Roque’s alleged involvement as a legal representative of Lucky South 99, a Philippine Offshore Gaming Operator (POGO) hub based in Porac, Pampanga. 

Marcos was the President who officially outlawed POGOs in November last year.  

Last year, authorities raided the facility, rescuing 186 Filipino and other foreign nationals who were reportedly working there while being held against their will.

The recent congressional hearings on the matter revealed documents bearing Roque’s signature, which were submitted as evidence of his connection to the operator. 

He also admitted to helping Katherine Cassandra Ong, a registrant of Whirlwind Corporation, which leased the land used by the gaming hub and settled fees with the Philippine Amusement and Gaming Corporation (PAGCOR) in the process.

Roque Financial Ambiguities Relating to POGO

Panelo stressed in his interview that the burden of proof still rests with the prosecution. If the accusations lack merit, Roque does not need to provide any further supporting evidence.

Nevertheless, he warned that due to the nature of the case involving human trafficking, it would require his immediate detention, with a strong case for his need to file a bail petition, too.

As a result of the case, Roque’s legal and financial affairs have been placed under the microscope. Paramount among these concerns is his own company, Biancham Holdings, whose assets suspiciously shot up during this time, from their original value of $2,200 in 2014 to over $1.2 million in 2018.

In a separate indictment, his wife, Mylah Roque, has also been implicated for allegedly signing lease agreements with Chinese nationals who are linked to another POGO hub in Bamban, Tarlac. 

To date, both have failed to comply with congressional subpoenas to provide supporting financial documents, prompting the House of Representatives to issue the recent arrest orders.

Roque’s Asylum Bid and Interpol Red Notice

Responding to the accusations, Roque argued that his legal services were limited and instead maintained that the charges were entirely politically motivated.

In a recent interview, he also went on to dismiss Panelo’s televised statements, stating he believed they reflect a “complete ignorance of asylum law.”

Following due process, the Department of Justice has begun legal proceedings to request an Interpol ‘Red Notice’ insisting that Roque must be immediately apprehended in order to be tried. 

If granted, it would help facilitate the government’s efforts to bring him back to face trial in the Philippines.

Commenting on the Roque predicament, Panelo said public perception would begin to turn against him the longer he remains abroad. “Whether that’s right or wrong, that would be the perception of people. So, if I were him, I would go home,” he remarked bluntly.

Despite their past roles, both working under the Duterte administration, Panelo has made it clear that he believes this is not a political witch-hunt but merely the enforcement of legal accountability.

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The agency said that its investigation now extends “beyond the kidnappers who directed the ransom payment process.” It is also investigating casino players within the junket operations. The agency thinks these players initially received part of the ransom payments in electronic wallets.

Que and his driver, Armanie Pabillo, were kidnapped on March 29. Shortly after, individuals contacted Que’s family, demanding the payment of a ransom worth some $3.7 million.

Casino Junket Probe Begins

His family complied with the request, making three payments between March 31 and April 8. However, the bodies of the two men were found by the roadside on the morning of April 9.

This month, the Philippine National Police said they had evidence that part of the ransom money was deposited in fiat peso and USD into accounts linked to the casino junket operators 9 Dynasty Group and White Horse Club.

On May 5 the recipients reportedly moved the funds into at least 10 different e-pay accounts.

The recipients allegedly used the money to buy cryptocurrency, later sending the tokens to various crypto wallets.

Wallets Linked to Shell Accounts, Casinos, and Crypto, Says Agency

In an official announcement, the Anti-Money Laundering Council (AMLC) said that it had launched a probe into the allegations.

The body will work with the gaming regulator, the Philippine Amusement and Gaming Corporation, and the police on the investigation.

The nation’s central bank is helping with the probe. The agency is also working with the Philippine Securities and Exchange Commission and overseas law enforcement agencies.

The AMLC said it had evidence that 9 Dynasty Group and White Horse Club facilitated money laundering for the ransom payments. It wrote: “The illicit scheme reportedly utilized e-wallets intended exclusively for casino gaming, shell accounts, and cryptocurrency to obscure the money trail.”

The police have previously said that they are trying to monitor the movement of the crypto funds through overseas-based wallets. Officers are using blockchain analytics solutions to track the coins.

Firms Say They Have Shut Down Philippines Operations

The agency noted that 9 Dynasty Group and White Horse Club officially ended their junket operations in most Philippine casinos on May 7.

And 9 Dynasty has reportedly said it will put a complete end to its Philippine operations. But the AMLC wrote that it “remains steadfast in its commitment to probe the firms’ alleged money laundering activities.”

Officers found Que and Pabillo’s bodies in the Rizal Province. Investigators said the men had been badly beaten before their deaths.

In mid-April, Filipino news agencies, including the Manila Times, reported that the killings may have been linked to a failed $20 million offshore gaming deal.

In November last year, President Ferdinand “Bongbong” Marcos signed an executive order banning Philippine offshore gaming operators (POGOs) from operating in the nation.

Regulated gaming is on the rise, however. The Filipino gaming industry posted gross gaming revenue figures of 104.12 billion pesos ($1.9 billion) in the first quarter of 2025. This represents a rise of over 27% on the industry’s Q1 figures for the Financial Year 2024.

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The figure represents an increase of 27.44% compared to the same period last year. The regulator also highlighted Q125 as pivotal in the country’s gambling ecosystem, with electronic gaming becoming the primary revenue driver for the first time. 

Alejandro H. Tengco, the CEO and Chairman of the Philippine Amusement and Gaming Corporation (PAGCOR), said: “The E-Games and E-Bingo segment made history by becoming the industry’s top revenue driver for the first time, contributing Php51.39 billion or 49.36% of the total first quarter GGR.” 

Consumer Shift Drives Philippines Gaming Surge

He added that this is not just revenue growth but a representation of how consumer behavior continues to shift towards digital, on-demand gaming experiences. The CEO attributes the acceleration in channel shift to broader access to mobile technology.”

The CEO also highlighted that the gaming industry’s rise has significantly reshaped the Filipino gaming landscape.

Tengco explained that digital platforms are taking center stage as the Philippine gaming industry is paradigm-shifting. “Hence, our goal as a regulator is to strike the right balance between innovation, player protection, and long-term industry sustainability,” he added.

PAGCOR’s report notes that licensed casinos generated Php49.28 billion, accounting for 47.32% of the industry’s total. Due to growing digital competition, revenues from licensed casinos dipped slightly in 2024.

“The performance of brick-and-mortar casinos remains critical to industry stability, particularly in tourism-driven hubs such as Entertainment City and Clark,” the Chairman said.

PAGCOR Continues Its Transition

The report also mentions that PAGCOR-operated casinos generated Php3.45 billion in revenues, claiming 3.31% of the market share.

A year ago, PAGCOR’s report for Q1 2024 also marked a considerable increase in income, which went up by over 42% from 2023. The regulator declared total revenue of Php25.24 billion, and Tengco outlined that the corporation was on track to reach Php100 billion in annual income for the first time in its 40-year history.

PAGCOR was also transitioning to become solely a gambling regulatory agency, moving away from its dual role as a regulator and an operator. Its goal was to complete the transition by 2025.

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Matt Bastock

The Philippine Amusement and Gaming Corporation (PAGCOR) has announced the closure of two casino sites, citing significant losses over recent years.

PAGCOR said the two venues have been shuttered as part of the regulator’s ‘ongoing rationalization plan.’ 

Alejandro Tengco, PAGCOR Chairman and CEO, commented, “Given the sustained financial strain, continuing operations at these sites is no longer feasible.” 

The first venue to close, Casino Filipino Talisay (operated by Casino Filipino Cebu), incurred net losses of PHP39.32 million ($0.67 million) in 2023, worsening to PHP49.56 million ($0.85 million) in 2024. 

Casino Filipino Tagum is the other location that will discontinue operations. Operated by Casino Filipino Grand Regal, losses hit PHP36.93 million ($0.64 million) in 2024, up from PHP31.56 million ($0.54 million) in 2023. 

“While our decision was driven by mounting financial losses, safeguarding the welfare of affected employees through job reassignment and comprehensive support programs is our priority,” said Tengco. 

The 42 employees from Casino Filipino Talisay will be transferred to various branches under Casino Filipino Cebu. In comparison, the 33 employees from Casino Filipino Tagum will be deployed to different sites under the Casino Filipino Grand Regal in Davao.

Tengco concluded, “Our Human Resource and Development Group is actively working with affected employees to facilitate a smooth transition, ensuring that each individual receives guidance and assistance in their reassignment.” 

The Corporation announced record revenues in 2024, reporting a record-high PHP112 billion ($1.93 billion) in revenue, up 41% year over year from 2023’s figure. 

Before 2024, PAGCOR’s highest gross operating revenue was in 2019, before the global pandemic, when the state-owned gambling giant posted PHP81.98 billion ($1.41 billion).

PAGCOR’s Record-Breaking Revenue in 2024: Key Growth Drivers

The Chairman attributed the record-breaking performance to the electronic games and bingo sectors, contributing just over 50% of the 2024 gaming revenues. 

“The continuous growth of the E-Games sector is the key driver of PAGCOR’s record-breaking performance. It reflects the increasing popularity of digital gaming platforms and the transformative impact of technology on the industry,” Tengco commented. 

12.99% of 2024’s revenue came from PAGCOR-owned Filipino casino venues, with 33.91% of total receipts from the licensed casino sector. 

2024 marked just the second time that PAGCOR has surpassed the PHP100 billion revenue mark, with the other being in 2018. However, the figures from 7 years ago included a one-time property sale of over PHP32 billion.

Written By

Matt Bastock

Matt is a casino and sports betting expert with over two decades’ writing and editing experience. He loves getting into the nitty gritty of how casinos and sportsbooks really operate in order to make solid recommendations based on real experiences. His favourite games are blackjack and poker, and he loves watching NFL and soccer in his spare time.

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Such is the pace of the exodus, PAGCOR Chairperson Alejandro Tengco used his platform at the forum at the Stratbase ADR Institute to emphasise his belief that the presence of POGOs will be finished by 15th December. 

Further intensifying the speed of the departure, the Philippine Bureau of Immigration revealed that it is anticipating around 20,000 former POGO workers to leave the country by the end of the month as time runs out before the ban on the offshore gambling industry goes into effect.

In a statement, the bureau told POGO foreign workers that they must abide by the government’s deadline to leave the country before the end of the year or risk being deported and blacklisted.

According to the agency, as of November 7, a total of 21,757 foreign nationals linked to POGO activities had voluntarily downgraded their work visas to temporary visitor visas, with 10,821 of them having already left the country. Another 12,106 foreign nationals who did not downgrade their visas were issued cancellation orders in October.

BI said it “wants to ensure a smooth and orderly process for affected foreign workers, hence the reminder to respect the deadline. Affected individuals are advised to promptly make all necessary travel arrangements.”

The Executive Order banning POGOs in the Philippines has officially been signed by President Marcos. The decision was originally announced at his State of the Union address in July, where it was met with a rousing reception from those in attendance. 

This latest chapter in Philippines regulation marks the next step in a ‘critical period’ for one of Asia’s most significant gambling ecosystems, as efforts to eradicate offshore betting locations are set to intensify. 

The government has also elevated efforts to ensure that affected Filipino workers aren’t displaced as a result of the ban, with the government assigning  specialist agencies to ensure that there is still a role for workers in the country. 

In a recent interview with CasinoBeats, Keith McDonnell, Director at the KMI Group, revealed that action was already underway in the build-up to the formalisation of this bill.

He stated: “A phased approach is ongoing, with current POGO licence holders asked to report frequently on what they’re doing to make sure they are closed down by December. Meanwhile, some operators have already split their teams up and are locating specific functions elsewhere to mitigate against business risk.

“Others hope that they can retain a lot of their highly educated and experienced workforce in the Philippines by getting special class BPO accreditation or partnering with an outsourcing business that has it.”

He did predict that there is a future for igaming operators to have some sort of footprint in the Phillippines, as the heritage and knowledge the country has built up is not easily replaced. 

“The Philippines has been an outstanding location for many businesses in our industry for decades”, he stated. 

“In introducing new measures to address the illicit activities of some Internet Gaming License holders, it has hoped opportunities will remain for resectable businesses to continue and thrive whilst employing thousands of locally knowledgeable and experienced Filipinos.”

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The decision, when originally announced at his State of the Union address in July, was met with a rousing reception from those in attendance. 

This latest chapter in Philippines regulation marks the next step in a ‘critical period’ for one of Asia’s most significant gambling ecosystems, as efforts to eradicate offshore betting locations are set to intensify. 

Announced in the Official Gazette, it’s a move that also sees efforts elevated to ensure that affected Filipino workers aren’t displaced as a result of the ban, with the government singling specialist agencies to ensure that there is still a role for workers in the country. 

In a recent interview with CasinoBeats, Keith McDonnell, Director at the KMI Group, revealed that action was already underway in the build-up to the formalisation of this bill. 

He stated: “A phased approach is ongoing, with current POGO licence holders asked to report frequently on what they’re doing to make sure they are closed down by December. Meanwhile, some operators have already split their teams up and are locating specific functions elsewhere to mitigate against business risk.

“Others hope that they can retain a lot of their highly educated and experienced workforce in the Philippines by getting special class BPO accreditation or partnering with an outsourcing business that has it.”

He did predict that there is a future for igaming operators to have some sort of footprint in the Phillippines, as the heritage and knowledge the country has built up is not easily replaced. 

“The Philippines has been an outstanding location for many businesses in our industry for decades”, he stated. 

“In introducing new measures to address the illicit activities of some Internet Gaming License holders, it has hoped opportunities will remain for resectable businesses to continue and thrive whilst employing thousands of locally knowledgeable and experienced Filipinos.” 

Furthermore, it was recently revealed that the Isle of Man has set aside a budget to explore the potential of embracing the displaced operators as a result of the POGO ban in the Philippines, but a meticulous and careful approach will be taken. 

According to the Isle of Man Today, a spokesperson for Digital IoM stated: “Following conversations with businesses operating within the island’s digital sector, it was recognised that recent regulatory changes in the Philippines affecting Philippine Offshore Gaming Operators could present a strategic opportunity for the Isle of Man.

“The blanket ban imposed by the Philippine regulator creates a significant displacement of the sector, meaning legitimate and high-performing businesses operating there are required to seek alternative regulatory markets. Consequently, the Isle of Man, known for its robust regulatory standards in this space, could provide this alternative for those businesses which would meet these high standards.”

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In total, the group landed Php79.43bn (US$1.36bn) of revenue as the Philippines’ gambling sector navigates a new regulatory landscape. 

The set of results underlined the significant growth of the country’s thriving online gaming sector, which reported 25% of the total revenue for the nine-month period. 

Alejandro Tengco, PAGCOR Chair and CEO, stated: “Our third quarter performance is a strong indication that in spite of the President’s decision to ban offshore gaming operations in the country, we are still on track to meet our Php100bn revenue target by year-end.

“From our total contributions to nation-building, Php33.2bn ($570m) went to the National Treasury as 50% government share. Half of the remittances to the national coffers, or Php16.6bn ($285m), has been earmarked for PhilHealth to fund the Universal Healthcare Law.”

The PAGCOR has recently taken significant steps to shift the allure away from the grey market and bring operators closer to the regulated space. 

One of the key developments for the Philippines was its decision to reduce fees for operators by 2025. The move was confirmed by Tengco during a Keynote Address at the IAG Academy Summit, where he revealed they will be dropped to 25%.

Furthermore, as the regulatory framework in the region continues to evolve, he added that they will decrease fees to 30% for other integrated resorts and land-based operators. 

It comes as the country is taking significant steps to clean up its gambling sector and tackle the black market, with licensed integrated resorts set to see a reduction of 10% in charges on GGR.

Speaking at the Summit, Tengco stated his ambitions that it “encourages operators away from the grey markets and to embrace the mainstream”, as he unites with governmental forces to bolster the crackdown on illegal operations in the region.

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