- The crackdown was triggered by reports of murders, kidnappings and other Chinese-on-Chinese crimes, a justice department spokesman said
- Authorities said they will also shut down 175 Philippine offshore gambling operators, or Pogos. China’s embassy in Manila said it supported the move
A gambler interacts with a Chinese-language online gambling website operating out of the Philippines in 2018. Manila has been cracking down on the sector amid reports of an associated crime wave. Photo: Tory Ho
The Philippines will stop operations of 175 offshore gambling firms and deport about 40,000 Chinese workers as part of a crackdown on the notoriously opaque online gaming industry.
The sector emerged in the Philippines in 2016 and grew exponentially, as operators capitalised on the country’s liberal gaming laws to target customers in China, where gambling is banned.
At their peak, Philippine offshore gambling operators, or Pogos, employed more than 300,000 Chinese workers, but the pandemic and higher taxes have forced many to operate elsewhere.
The crackdown was triggered by reports of murder, kidnapping and other crimes committed by Chinese nationals against fellow Chinese nationals Jose Dominic Clavano, Philippines’ Department of Justice
“The
crackdown was triggered by reports of murder, kidnapping and other
crimes committed by Chinese nationals against fellow Chinese nationals,”
justice department spokesman Jose Dominic Clavano said on Monday.
The Pogos targeted for closure had licences that either expired or were revoked, for violations like non-payment of government fees, Clavano said, adding the deportation of the Chinese workers would start next month.
The government generated 7.2 billion pesos (US$122 million) in 2020 and 3.9 billion pesos last year in Pogo fees alone, according to the finance ministry. Economists estimate considerably larger amounts are being spent on taxes, workers’ spending and office rental.
China’s embassy in Manila said in a statement that Beijing supports the deportation and crackdown on Pogo-related crimes, adding the government “firmly opposes and takes tough measures to combat gambling”.
The Philippines regulator, which recently said there were 30 licensed Pogo firms versus 60 before the pandemic, did not immediately respond to a request for comment.
Real estate consultancy Leechiu Property Consultants estimates that a complete exit of the Pogo industry would leave vacant 1.05 million square metres (259 acres) of office space – a third of the size of New York’s Central Park – and 8.9 billion pesos (US$151 million) in foregone annual rent.
The sector employs 201,000 Chinese and 111,000 Filipinos, according to Leechiu’s data, which estimates Pogos deliver 190 billion pesos (US$3.2 billion) to the economy each year, a boon to the property and retail sectors.