Philippine regulator says enforcing ban on China-linked Pogos ‘challenging’, wants exemptions

The head of the Philippines’ gaming regulator said implementing a ban on online casinos would be a challenge, as he pitched to exempt about a dozen outsourcing companies working for foreign gaming firms from the prohibition.

Most online casinos previously stripped of licenses “are still around” and operating illegally, said Alejandro Tengco, Chairman and Chief Executive Officer of the Philippine Amusement and Gaming Corp., or Pagcor.

“The big issue here really is as soon as we are able to successfully wind down, the next challenge would be enforcement,” he said in an interview with ABS-CBN News Channel on Tuesday.

Philippine President Ferdinand Marcos Jnr, in his state of the nation address last week, banned online casinos catering to Chinese gamblers, responding to calls to shut down an industry that he said stoked crimes including money laundering. He gave Philippine offshore gaming operators, or Pogos, until the end of the year to wind down their operations.

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There are some 12 or 14 business process outsourcing companies that have special licenses to provide customer service to gaming companies based in Australia, US, Canada and Europe, Tengco said. Since these outsourcing firms are engaged in back room operations and do not take bets, they should be excluded from the ban, he said, adding that another six of such companies have pending applications.

All 43 internet gaming licenses covered by the ban directly employ more than 31,000 Filipino workers, while outsourcing firms holding special licenses employ some 8,000 to 9,000 nationals, Tengco told a Senate hearing on Monday. He’s meeting this week with key government officials to discuss other opportunities for displaced