The Philippine POGO sector faces potential risks following a dispute involving a suspected Chinese agent.
A newly proposed bill in the Philippine Senate aims to shut down the nation's disputed online gambling (or "POGO") industry, pointing out its connections to human trafficking and fraud. POGO stands for Philippine Offshore Gaming Operator, a company authorized to operate in the Philippines while serving clients overseas, primarily in China.
The author of the bill, Senator Sherwin Gatchalian, noted that many of these firms, predominantly operated by Chinese citizens, also engage in human trafficking and deception.
He stated, "Even though the POGO sector has added revenues and jobs, the Philippines has experienced a sharp increase in related illegal activities, raising concerns over its overall consequences."
Controversial Case
In February 2023, authorities raided a POGO in the town of Bamban, Tarlan province, believed to be involved in cryptocurrency fraud. A second raid took place in March 2024 due to allegations of human trafficking and cybercrime.
During a May 2024 Senate inquiry, Gatchalian disclosed that the land where the POGO was built partly belonged to the mayor of the town, Alice Guo. Her car was also discovered on the premises, and questions about her wealth and controversial background have surfaced.
The mayor's Filipino status is also called into question due to inconsistencies in the details she provided about her birth and education. Guo has been accused of being a Chinese "asset" assigned to influence Philippine politics, an allegation she denies.
Relations between Manila and Beijing over territories in the South China Sea have cooled under previous president Rodrigo Duterte but have been intensified under the administration of President Bongbong Marcos.
Potential Security Hazard
Long before the Guo scandal, politicians and analysts had sounded the alarm about the potential security hazard posed by the POGO sector.
With our inability to thoroughly monitor and screen these firms entering the country, it's a significant national security risk. Our reactive stance only adds to our vulnerabilities," said Sherwin Ona, an associate professor of political science at De La Salle University in Manila. He further added that the Guo controversy should serve as a "wake-up call."
At its peak under Duterte, the POGO industry employed more than 300,000 Chinese laborers. After strict regulations were put in place, the number has reduced to between 100,000 and 150,000, according to official figures.
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