NO TO HALF MEASURES ON POGOS

THE discovery by police of an underground tunnel and clandestine firing range during an inspection of a posh leisure resort owned by a Philippine offshore gaming operator (POGO) in Porac, Pampanga, this week reinforces the extent to which these online casinos exert a corrupting influence on our communities.

The earlier discovery of nine foreigners found dead and dumped in different areas of Pampanga — including the site of the POGO hub in Porac — is a reminder that these online operations provide fertile ground for various crimes, such as kidnapping, illegal drug use, prostitution, money laundering — and murder.

It was with some concern, then, to learn that the Presidential Anti-Organized Crime Commission (PAOCC) is considering recommending a gradual phaseout of the online casinos instead of an all-out ban. A spokesman for the agency said the government should try phasing out POGOs gradually before going for a total ban.

To bolster that argument, the PAOCC spokesman said "a good number" of the 298 POGOs whose licenses were canceled were still operating.

"What does that mean? That even if you totally banned them, you don't necessarily take them out of the picture," he said.

This argument makes very little sense.

If any of these 298 POGOs are operating without a license, they are, by definition, illegal. Why should the government cut them any slack? And is there really a risk that they would go underground when they are already operating illegally?

Yet this is the same tired argument made by the Philippine Amusement and Gaming Corp. (Pagcor), which oversees "legal" POGOs.

Alejandro Tengco, its chairman and chief executive officer, has argued that there is no need to outlaw offshore gaming operators, as the real threats to national security are alien hackings and scam syndicates.

"What we need to do is intensify anti-crime operations against suspected alien hackers, against scammers and cybercriminals who are usually hiding in highly secured buildings and compounds," Tengco said in a statement. He added that the said syndicates were "not engaged in offshore gaming at all, and even if they are, they are doing it illegally."

"We should not blame and demonize our licensed gaming operators because these are closely monitored by Pagcor," Tengco said.

He also said that about 250,000 Filipinos were directly or indirectly at risk of losing their jobs should the government impose a total POGO ban, although Albay Rep. Joey Salceda, another outspoken POGO supporter, said the figure was much less.

Both also point to the revenues the government would lose if a ban were imposed. The lawmaker said that after a Pagcor crackdown on illegal POGOs, there were now only 87 licensees who paid the government about P5.17 billion in fees.

"The government should not introduce a POGO ban, period," Salcedo said, adding that such a prohibition would "kill any inducement to good behavior in that sector."

The lawmaker also said it "will also completely wipe out the incentive for legally compliant licensees to tip off illegal operations of noncompliant competitors."

Citing the example of the local tobacco industry, Salceda said a lot of the tips on smuggling came from tax-compliant companies. "The same is true for POGOs. It's a bad idea to even contemplate a total ban," he said.

"Keep the Pagcor rules. Keep the POGO Tax Law, which, at least, sets what the government can do to apprehend offenders. Funnel some of the revenues toward law enforcement capabilities. That's what we should do," the legislator added.

Salceda's use of the tobacco industry suggests that he acknowledges — but does not explicitly say — that both industries are similar in that they have a harmful effect on society. Smoking, of course, has long been linked to the risk of cancer and respiratory diseases, so there are real health risks — and costs — to society.

On the other hand, we know from recent experience that POGOs bring with them a host of associated crimes. The question is, are the revenue and employment benefits of POGOs worth the risks and social costs they carry? Could we not raise revenues and generate employment in better ways?

Significantly, two key members of President Ferdinand Marcos Jr.'s economic team — Finance Secretary Ralph Recto and Socioeconomic Planning Secretary Arsenio Balisacan — have considered all these factors and agreed that POGOs are not worth the trouble and should be banned altogether.

Lawmakers and government officials who say we should keep the "legal" POGOs around because they give the government income should reexamine the social costs and come to the same conclusion. The time for half-measures is over. POGOs are a blight on our society, and they must go — all of them.

2024-07-13T16:20:40Z dg43tfdfdgfd