In a move that signals a significant transformation for the Philippines' gaming sector, the Philippine Amusement and Gaming Corp (PAGCOR) has announced a decisive deadline for the validity of work permits held by both foreign and local employees of Philippines Offshore Gaming Operators (POGOs). By the end of December 2024, all such permits will cease to be valid. This directive also encompasses those employed under the offshore gaming employment licenses for workers of internet gaming licensees (IGLs), ensuring a unified approach to the impending closure.
The decision, spearheaded by PAGCOR's CEO Alejandro Tengco, is a direct response to the nationwide POGO ban declared by the Philippines' President in his State of the Nation Address (SONA). The shift from a once-thriving three-year license validity period for POGOs, now rebranded as IGLs, to a definitive end point marks a pivotal moment for the industry.
The prohibition of POGOs is not without its controversies and concerns. PAGCOR's CEO Tengco has openly expressed apprehensions regarding the financial and employment impacts of this ban. A staggering projected revenue loss of PHP 23 billion ($0.41 billion) for PAGCOR, coupled with the alarming potential for 40,000 local job losses, underscores the gravity of the situation.
In the wake of the ban's announcement on July 22, stringent measures were immediately put in place. POGO employees, particularly those from overseas, were given a 60-day window starting July 26 to exit the Philippines or face penalties. This directive also sparked a public campaign to identify and report any illegal POGO workers, leading to swift deportations.
Amid these developments, PAGCOR has made appeals to exclude outsourcing companies servicing US and UK operations from the ban, highlighting the complex interplay of economic interests and regulatory measures shaping the future of the Philippines' gaming industry.
The impending closure of POGOs represents a significant turning point, not just for the gaming sector, but for the broader socio-economic landscape of the Philippines. As the deadline approaches, the industry braces for change, reflecting on the challenges and opportunities that lie ahead in this new chapter for Philippine gaming.
