Philippines shutters its online gambling industry amid tax evasion, human trafficking concerns
The Philippines is shutting down its offshore gambling industry due to tax evasion and human trafficking concerns, impacting thousands of workers.
President Ferdinand 'Bongbong' Marcos Jr. has mandated the closure of all Philippine Offshore Gaming Operators (POGOs) by the end of the year. This drastic measure comes amid rising concerns over tax evasion, human trafficking, and other criminal activities associated with these online gambling operations.
An ongoing Senate investigation has exposed severe misconduct, including a case involving a mayor named Alice Guo, who allegedly ran a vast illegal POGO empire under the alias Guo Huaping. With over 800 victims rescued from her scam compounds, the investigation highlighted the depth of the criminal activities intertwined with the industry.
While the economic impact includes an estimated $400 million annual loss in tax revenues, the government determined that the social costs were too high to ignore. Planning Secretary Arsenio Balisacan noted that POGOs contributed only about 0.5% to the GDP, suggesting the losses were manageable. The decision aims to curb transnational crime and may also help ease geopolitical tensions with China.