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Philippines: POGOs Contribute Towards Coronavirus Aid

Philippine offshore gaming operators contribute to combating Covid-19; potential improvement in tax-tense relationships?

SymClub
May 10, 2024
3 min read
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The Philippine capital region of Metro Manila has the highest number of coronavirus cases.
The Philippine capital region of Metro Manila has the highest number of coronavirus cases.

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Philippines: POGOs Contribute Towards Coronavirus Aid

The Philippine Gaming Authority, PAGCOR, has launched a massive aid campaign to combat the COVID-19 pandemic. The Philippine Offshore Gaming Operators (POGOs) have also contributed to the effort, potentially mending their strained relationship with the authorities. Here's a recap:

Feeding the hungry, healing the sick

As part of a multimillion-euro rescue plan for the Philippines, PAGCOR has disclosed that POGOs donated around €2.7 million. This amount was used to purchase food and support medical care in hospitals.

POGOs also gave the Philippine National Police (PNP) three thermal imaging cameras. These devices are now being used at Manila airport to measure the body temperature of travelers. Moreover, food was provided to impoverished families.

A meaningful gesture

The majority of these activities took place in areas such as Quezon City, Taguig City, and Pasay, which form the Metro Manila region and are home to more than 12 million people. This sector has been most impacted by the coronavirus and has been under quarantine for at least a month since March 15. The number of confirmed cases rose from 500 (with 33 deaths) to over 700 (as of March 26). Forty-five deaths were reported recently.

PAGCOR claims to have received a total donation of around 150 Philippine pesos (approximately €3.7 million) in the battle against the pandemic. Besides the POGOs, four licensed casinos contributed to the cause. The annual lump sum to the government was also increased to the equivalent of around €216 million. Andrea Domingo, Chairman of PAGCOR, expressed her thoughts to The Manila Times:

"We're making a substantial contribution to the national government's efforts and want to help soften the impact of dwindling government revenues. This is a result of the economic downturn caused by measures taken to curb Covid-19's spread."

CNN Philippines revealed that PAGCOR closed land-based and casino venues on March 15 as part of regional quarantine measures. Chris Tarunate, a spokesperson for PAGCOR, emphasized the danger of the pandemic and supported the government's extreme actions:

"We believe in the gravity of the Covid-19 pandemic and are thus endorsing the government's rigorous efforts to contain the virus. In response, we've canceled all public gatherings in our gambling venues and locked our doors."

Is online gaming next?

With all gambling activities suspended, the online sector, too, experienced a halt. It's expected that PAGCOR is trying to leverage the significant charitable contributions to persuade the government to lift the temporary restrictions on online gaming. Andrea Domingo requested officials to reconsider the situation.

POGOs are legal Philippine operators that conduct online gaming operations within the country but are primarily intended for markets outside of the Philippines. The aim is to generate substantial tax revenue whilst shielding the domestic market from unlicensed international online gambling providers.

For years, POGOs have come under fire, especially from China. The Chinese government links POGOs to criminal activities, especially casino kidnappings targeting Chinese tourists. Despite China's objections, the Philippine government has repeatedly stood by these operators.

However, there have been continuous disputes between the government and POGOs, particularly over tax violations. In 2019, for instance, GEGAC (Great Empire Gaming and Amusement) was shut down for tax irregularities. Over 8,000 employees were impacted, the majority being Chinese nationals.

The Philippine tax authority indicated that POGOs owed considerable taxes, with €380 million due in 2019. Yet, only €24 million was received—a mere fraction of the required amount. Finance Minister Carlos Dominguez advocated for the closure of all POGOs that failed to meet their tax obligations.

A new beginning?

Although the POGOs have historically been at odds with the Philippines' government, the pandemic might serve as a catalyst for a fresh start. The crisis isn't close to its peak in the Philippines, so it remains to be seen if the country's gaming industry will continue its charitable stance under further restrictions.

On the 12th of March, 2020, the Philippine government blocked over 100 gambling websites, including those operated by POGOs. PAGCOR initially maintained that the orders would remain in force until the expiration of the Luzon-wide enhanced community quarantine (ECQ) on April 30. But they later said it might extend up to May 15, 2021.

With China and the Philippines at odds over POGOs for years, Manila's newfound cooperation could mark a significant change in the relationship—and a promising one for both nations.

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Source: www.onlinecasinosdeutschland.com

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