By Justine Irish D. Tabile, Reporter
BUSINESS GROUPS expressed support on Wednesday for the position laid down by the Department of Finance (DoF), which had proposed to ban Philippine Offshore Gaming Operators (POGOs).
In a statement, the business groups, led by the Makati Business Club (MBC) said the contribution of POGO investments was equivalent to 0.2% of gross domestic product in 2023, calling it minimal compared with the social costs attributed to the industry.
“The crimes related to POGO investments can hinder growth, affect investor perception, and potentially affect our bilateral and multilateral relations,” they said.
“Recent Senate hearings and statements by NEDA have illustrated that POGOs have been linked to negative externalities, particularly involvement in crimes such as human trafficking, kidnapping, and money laundering, among others,” they added.
Citing a report from the Philippine National Police, the groups said that 55% of the 31 cases of kidnapping recorded in 2022 were POGO-related.
Finance Secretary Ralph G. Recto has sent a letter recommending a POGO ban to President Ferdinand R. Marcos, Jr.
National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said the Cabinet has yet to discuss the ban.
On Tuesday, the DoF said it is willing to forego taxes from POGOs, which it expects to be offset by investments encouraged by the improvement in business climate if crimes associated with the industry recede.
The DoF estimated that the reputational risk from POGOs costs the government P55.36 billion in forgone investments.
The Philippine Amusement and Gaming Corp. has said its estimate of foregone revenue if POGOs are shut down is P20 billion a year.
The Senate is investigating crimes linked to POGOs, which are mostly Chinese gambling firms that operate online casinos. The chamber is currently weighing a bill banning the industry.
Senate Bill No. 1281 would repeal all laws, executive orders, and other rules that allow online gambling.
The signatories to the statement are the MBC, the Management Association of the Philippines, Alyansa Agrikultura, the Financial Executives Institute of the Philippines, the Foundation for Economic Freedom, the Institute of Corporate Directors, the Justice Reform Initiative, and the UP School of Economics Alumni Association.
