Is the Philippines POGOs industry ready to resume operations?
Recently, according to local media reports in the Philippines, Andrea Domingo, Chairman/CEO of Philippine Amusement & Gaming Corp (PAGCOR), has written to President Rodrigo Duterte to advise him on the resumption of operations in the POGOs industry. The letter stated that the Philippine Offshore Gaming Operators (POGO) may be allowed to resume operations on the premise that all public health regulations are complied with, including: maintaining social distancing, wearing masks and washing hands correctly. Luzon, the main island of the Philippines, has implemented a quarantine policy to stop the spread of the Covid-19.
By the middle of March 2020, the activities of the POGOs industry had been suspended. Most of the POGO service providers and live casino studios in the Philippines are located in the largest city in Luzon – Manila. PAGCOR recently announced that due to the temporary closure of POGOs and physical casinos (including PAGCOR’s casino business), the regulator has lost more than USD100 million in monthly revenue. PAGCOR is one of the most important contributors to the Philippine treasury. Earlier, Domingo had inquired whether certain high-income gambling departments could be allowed to resume operations to prevent the government from bankruptcy.
According to data from PAGCOR, its net revenue in the first quarter of 2020 fell by nearly 50% year-on-year, leaving only USD15.3 million. Domingo pointed out that unless the president allows those gambling departments that can generate high revenues to resume operations, if not the revenue of April will be zero. In response, Philippines Finance Secretary Carlos Dominguez’s response was non-committal, only expressing that all assessments are in progress. But there are also voices against the PAGO industry resuming operations. Franklin Drilon, Senator of the country criticized Domingo’s efforts to restart POGO. He said when the POGO industry became an indispensable industry in the country?
Not only that, Senator Joel Villanueva pointed out that the POGO industry is often accused of evading its tax obligations. So, what are the reasons for allowing it to operate? At the same time, members of the Philippine House of Representatives urged the Philippine Charity Sweepstakes Office (PCSO) to launch mobile lottery games to assist the government in funding efforts to fight the epidemic. Ronnie Ong, vice-chair of the House committee on games and amusements,, said that due to quarantine, PCSO launched a mobile betting option in a timely manner. Now, many citizens do nothing at home, but they can buy PCSO lottery as a contribution to the epidemic prevention work, rather than wasting money in online casino gambling to fight against boredom.
