Philippine Authorities Warn Timor-Leste about Potential POGO Relocation

Philippine officials caution Timor-Leste about the possible influx of former POGOs (Philippine Offshore Gaming Operators) following the ban in the Philippines. During a state visit on October 1, the Philippine Justice Minister informed Timorese authorities that POGOs might shift their operations there, posing socioeconomic and security challenges.

President Ramos-Horta’s Stance on Online Gambling

President José Ramos-Horta favors online gambling for foreigners in Timor-Leste but opposes physical casinos within the country. Timor has set up a Virtual Gaming Association to oversee licensing for online gaming, catering specifically to overseas players.

Impact of President Marcos Jr.’s Decision

Philippine President Ferdinand Marcos Jr. ordered the closure of the offshore gambling market by year-end, targeting primarily Chinese operators. Alleged involvement in illicit activities like human trafficking and money laundering prompted this move, emphasizing national security concerns.

Current Developments and Prospects

Philippine authorities have mandated all foreign POGO employees to leave the country by December 31, affecting around 20,000 workers. Fears of ramifications on diplomatic relations between the Philippines and China have been allayed by China’s support for the ban. The ban is not expected to impact relations, with both countries viewing it as a mutual interest.

What are POGOs?

POGOs are Philippine-based companies offering online gambling services to players in countries where gambling is banned, particularly focusing on Chinese customers. Connected with illegal activities, POGOs have faced increasing scrutiny, leading to the complete offshore sector ban.

Economic Ramifications and Support Measures

The ban will result in significant economic implications, with lost revenues and potential job losses for locals and foreigners. Efforts are underway to support affected Philippine workers, including exploring unemployment benefits and implementing retraining programs for alternative job opportunities.

China’s Response and Diplomatic Relations

China expressed appreciation for the ban, emphasizing mutual interests and pledging action against its citizens involved in illegal gambling activities. Despite existing tensions related to territorial disputes, the ban is not anticipated to exacerbate diplomatic relations between the Philippines and China. China’s strict stance on gambling is well-known, with recent actions against individuals engaged in illegal gambling activities.