Philippines bans offshore gambling, targeting Chinese-run businesses

President Ferdinand Marcos Jr. announced the sweeping measure in his recent address to the nation, which was greeted with a standing ovation by lawmakers and signaled a significant shift in the country’s approach to the offshore casino sector.

“Starting today, all POGOs are banned,” Marcos said, underscoring growing fears within the Philippines about the proliferation of offshore casinos. He condemned these operations because they extend beyond gaming to illegal activities, such as financial scams, money laundering, prostitution, human trafficking, and even violent crimes such as kidnapping and murder.

“Disguised as legitimate entities, their operations have moved beyond gaming into illicit areas, such as financial scams, money laundering, prostitution, human trafficking, kidnappings, brutal torture – even murder. This grave abuse and disrespect for our legal system must be stopped,” Marcos said.

The ban comes amid growing diplomatic tensions between Manila and Beijing over territorial disputes in the South China Sea. Although gambling is strictly prohibited in mainland China, with Macau being a notable exception, Beijing has stepped up efforts to curb cross-border gambling activities, particularly in Southeast Asia.

According to Philippine gaming regulators, there are currently 46 licensed offshore gaming operators, with many illegal establishments operating alongside them. Marcos has ordered all POGOs to shut down by the end of the year, signaling a swift end to an industry that gained prominence under his predecessor Rodrigo Duterte, who is known for his lenient stance towards China, as CNN reported.

Launched in 2016, POGOs have grown rapidly in the Philippines, contributing significantly to the country's economy and attracting thousands of Chinese nationals seeking online gambling opportunities. Critics have long accused the industry of turning a blind eye to illegal activities in exchange for substantial financial gains, highlighting concerns over its impact on law and order.

In recent years, Southeast Asia has seen a rise in online scam gangs exploiting loopholes in gambling regulations to run fraudulent schemes targeting victims around the world, including China and the United States. The coronavirus pandemic has exacerbated these issues, as with physical borders closed and traditional gambling avenues restricted, illegal casinos are turning to online scams.

Many of the people working in these illegal jobs are reportedly victims of human trafficking, with POGO hubs often located in secret locations such as abandoned malls, converted parking lots or undisclosed rented offices. Authorities in Manila have increased scrutiny of these establishments, alleging that many serve as masks for criminal activities ranging from fraud to cybercrime.

Earlier this year, a joint operation rescued more than 800 individuals, including Filipino and Chinese nationals, from a hub operating online fraud masquerading as a casino north of Manila. The Chinese Embassy in the Philippines has supported local efforts to end such operations, helping to shut down several offshore gambling centers and repatriate nearly 1,000 Chinese nationals involved in illegal activities.

China is taking a tough stance on overseas gambling, CNN reports. Its embassy in Singapore has warned Chinese citizens not to engage in cross-border betting, stressing that such activities are a violation of Chinese laws, even if casinos operate legally abroad.