FINANCE Secretary Ralph Recto expressed his strong approval of President Ferdinand Marcos Jr.'s decision to halt the operations of Philippine Offshore Gaming Operators (Pogos) in the country.
Recto said the Pogo operations carry significant reputational risks and have led to considerable harm through associated criminal activities.
He vowed to provide safety nets for the Filipino workers who will be displaced by the ban, saying that by the end of 2024, all displaced workers will have new jobs.
He said the Department of Finance (DOF) will collaborate with the Department of Labor and Employment (DOLE) to ensure minimal disruption to workers' incomes and provide necessary reskilling and upskilling opportunities.
In his third State of the Nation Address (Sona) on Monday, July 22, 2024, Marcos directed the Philippine Amusement and Gaming Corp. (Pagcor) to stop Pogo operations by year's end.
This directive followed Recto’s cost-benefit analysis report from June 25, 2024 that recommended the ban due to the social costs and reputational risks far outweighing the economic benefits.
According to the DOF, the net cost of Pogo operations was around P99.52 billion annually. The total estimated economic benefits were P166.49 billion per year, significantly lower than the total economic costs of P265.74 billion annually.
These benefits included government revenues, such as tax revenues from the Bureau of Internal Revenue (BIR) and Gross Gaming Revenues from Pagcor, alongside income from office and residential rentals, transportation, and private consumption demand.
The estimated economic costs included reputational risks affecting foreign direct investments and Pogo-related crimes impacting the country's tourism appeal.
Pogo operations also increased community fear and anxiety and eroded institutional integrity due to the economic influence of illegal activities.
By banning Pogos, the government aims to mitigate these extensive costs and focus on protecting and supporting its citizens and economy. (Juvffe Almendras, UP Cebu intern)