It wasn't long ago that the Philippine offshore gaming operator (POGO) sector emerged and flourished rapidly.However, it declined as soon as it appeared, and is now down to a fraction of what it was a year ago.
Non-regular foreign workers involved in POGO leave the Philippines.The number of business operators in the game field is steadily decreasing. (Image: 9News)
POGO, which serves foreign gamblers, is based in the Philippines. POGO serves foreign gamblers and operates in the Philippines.But new taxes and regulations have forced many to exit the market.
Philippine Amusement and Gaming Corp. (PAGCOR) has revealed that there are currently only 26 POGOs in the Philippines. Just before the emergence of COVID-19, there were 63 PGOs in the Philippines.
POGO stalls
Last February, the Philippine government imposed a 2% tax on POGO sales and introduced new regulations. It was a move to recapture lost income due to the COVID-5 pandemic.However, in reality, many operators have moved to withdraw.
That's probably what they were aiming for.China put pressure on the Philippines to persuade it to shut down the market as operators were overwhelmingly targeting Chinese gamblers.China has a strict anti-gambling policy for its citizens.
The pressure must have worked.However, the Philippines repeatedly insisted that the measures were not taken by China's influence.
As POGO began to withdraw, they left without paying the government.By September last year, the operator had debts of about 9 billion Philippine dollars (US$13 million).The tax revenue was intended to support the Philippines' universal healthcare system, which never materialized.
Assistant VP of PAGCOR's Offshore Gaming and Licensing Department, Victor Padilla, explained the POGO situation at the recent ASEAN Gaming Summit in Manila.He admitted that the gaming segment is losing a good chunk of its operators.Padilla also added that the country's entire gaming industry is suffering because of COVID-19.
PAGCOR Chairman Andrea Domingo has previously said that POGO has not given up entirely on its activities.Instead, they simply relocated to other regions, such as Vietnam and Cambodia.There, they could operate with less regulation.
PAGCOR continues to recover
PAGCOR, the Philippine gaming regulator and casino operator, was not stressed by the loss of POGO.On the contrary, it has been known to thrive and has continued to generate revenue throughout 2022.
In its latest financial health report, PAGCOR showed a net profit of PHP 21 billion (US$6000 million) for the first half of the year.This was up 3880% year-on-year due to a significant improvement in the gaming business.
Gaming profit for the first half was Php247 billion (US$2 million).This represents a 4% improvement over a year ago, when COVID-4 shut down gaming operations in the Philippines.
PAGCOR's revenue in the first half of last year was only PHP2 million (US$360 million).The Philippines only started welcoming international visitors in February this year, and this performance is likely just the beginning of further improvements for the rest of the year.
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