By means of Justine Irish D. Table, News reporter
BUSINESS GROUPS on Wednesday expressed support for the position of the Department of Finance (DoF), which had proposed banning 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 to the social costs incurred attributed to the industry.
“The crimes associated with POGO investments could hinder growth, affect investor perception and potentially affect our bilateral and multilateral relations,” they said.
“Recent NEDA hearings and statements in the Senate have illustrated that POGOs have been associated with negative externalities, particularly involvement in crimes such as human trafficking, kidnapping and money laundering, among others,” she added.
Citing a Philippine National Police report, the groups said 55% of the 31 kidnapping cases recorded in 2022 were POGO-related.
Finance Secretary Ralph G. Recto has sent a letter to President Ferdinand R. Marcos Jr. recommending a POGO ban.
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 waive taxes from POGOs, which it expects will be offset by investments spurred by the improvement in the business environment if crimes linked to the industry decline.
The DoF estimates that the reputational risk of POGOs costs the government P55.36 billion in lost investments.
The Philippine Amusement and Gaming Corp. has said that the estimate of revenue foregone if POGOs are closed is P20 billion per year.
The Senate is investigating crimes related to POGOs, mostly Chinese gambling companies that operate online casinos. The chamber is currently weighing a bill that would ban the industry.
Senate Bill No. 1281 would repeal all laws, executive orders and other regulations that allow online gambling.
The signatories of 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.