Philippine President shuts down POGOs amid crime and scam allegations

Marcos described the companies as fronts for scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture and murder.

Philippine President Ferdinand Romualdez Marcos has issued a sweeping ban on Philippine Offshore Gaming Operators (POGOs), mandating the cessation of their operations by year-end.

The announcement during his third State of the Nation Address at the Senate and House of Representatives joint session on July 22 follows months of escalating pressure from various sectors.

"Disguised as legitimate entities, their operations have ventured into illicit areas farthest from gaming, such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, and even murder," Marcos said.

Criticism of POGOs has intensified as they have increasingly been used as fronts for online scam operations and other criminal activities. 

POGOs, which began operations in 2003 and came under regulation in 2016 during Duterte's administration, are Philippines-based online gaming platforms that target overseas clients, particularly those in China.

The Chinese embassy in Manila has been a vocal proponent of the ban, having aided in the closure of five offshore centres last year and the repatriation of nearly 1,000 Chinese workers.

During the pandemic, declining incomes led some POGOs to repurpose their existing infrastructure for illicit activities.

Raids have revealed highly sophisticated scamming operations akin to those seen in countries like Cambodia and Myanmar, where 220,000 people are estimated to be working in scam centres, according to the UN — including some against their own will. 

High-profile raids have spotlighted the criminal underbelly of POGOs. In February 2023, a raid on Hongsheng Gaming Technology in Tarlac led to the detention of over 850 workers involved in a cryptocurrency scam. 

A subsequent raid in March 2024 on Zun Yuan Technology at the same site resulted in the seizure of firearms and scam equipment, with over 600 workers detained. 

The Senate ordered the arrest of the area’s mayor, Alice Guo after she failed to appear at hearings about the scam centres. Her whereabouts are currently unknown. 

Over the past two years, Philippine law enforcement has conducted numerous raids on POGO establishments, sometimes involving hundreds of officers. 

The Philippine National Police highlighted in November that these actions were straining police resources, while Justice Secretary Jesus Crispin Remulla described the detention of foreign POGO workers as a "logistical nightmare."

Despite the ban, House Speaker Martin Romualdez emphasised that ongoing investigations into POGO-related criminal activities would continue.

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You are more likely to be scammed in Hong Kong than be the victim of any other crime.

Last year, deception cases rose by 42.6% in the city to almost 40,000 cases and losses of HK$9 billion. Almost half of all reported crimes (44%) relate to fraud and scams.

Hong Kong isn’t alone. The situation here mirrors other places around the world. The US lost HK$78 billion to fraud last year. The UK lost HK$23 billion. Singapore lost HK$3.8 billion.

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