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Closure of POGO Operations in the Philippines: Impact on the Online Gaming Market

POGOs in the Philippines have been warned to leave the country by December 31, as the presence of offshore gaming companies in the local market continues to decline. 

With such an exodus underway, PAGCOR Chairperson Alejandro Tengco  stated at the Stratbase ADR Institute forum that he is confident the POGO presence will be fully terminated by December 15.

The Philippine Bureau of Immigration, accelerating the process, has announced that it expects around 20,000 former POGO employees to leave the country by the end of the month as the deadline for the ban on offshore gaming companies approaches. In its statement, the bureau emphasized that foreign POGO workers are required to leave the country by the end of the year in accordance with the government’s established deadline, or face deportation and blacklisting.

According to the agency, as of November 7, 21,757 foreign nationals connected to POGO operations voluntarily switched their work visas to temporary visitor visas, with 10,821 people already leaving the country. Another 12,106 individuals, who did not change their visas, were notified of their visa cancellations in October. The Bureau of Immigration clarified that “wants to ensure a smooth and orderly process for affected foreign workers, hence the reminder to respect the deadline. Affected individuals are advised to promptly make all necessary travel arrangements.”

The Executive Order banning POGOs operations in the Philippines has been officially signed by President Marcos. This decision was announced during his State of the Nation Address in July and received a positive response from those present.

This new phase of regulation in the Philippines marks an important step in the “critical period” for one of Asia’s largest gaming ecosystems, as efforts to close offshore gaming companies are set to intensify.

The government is also strengthening measures to ensure that Filipino workers are not left without jobs due to the ban, with specialized agencies being allocated to provide employment opportunities within the country.

In a recent interview, Keith McDonnell, director of the KMI Group, stated that preparations for formalizing the legislation have already begun. 

He stated: “A phased approach is ongoing, with current POGO licence holders asked to report frequently on what they’re doing to make sure they are closed down by December. Meanwhile, some operators have already split their teams up and are locating specific functions elsewhere to mitigate against business risk.

“Others hope that they can retain a lot of their highly educated and experienced workforce in the Philippines by getting special class BPO accreditation or partnering with an outsourcing business that has it.”

He did predict that there is a future for igaming operators to have some sort of footprint in the Phillippines, as the heritage and knowledge the country has built up is not easily replaced. 

“The Philippines has been an outstanding location for many businesses in our industry for decades”, he stated. 

“In introducing new measures to address the illicit activities of some Internet Gaming License holders, it has hoped opportunities will remain for resectable businesses to continue and thrive whilst employing thousands of locally knowledgeable and experienced Filipinos.”

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