BSP, AMLC probe POGOs’ impact on Philippine economy

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) and the Anti-Money Laundering Council (AMLC) are looking into the effects of offshore gaming operations in the country after the Chinese government raised concerns that online gambling fuels crimes such as money laundering.

“I already asked the AMLC team plus our financial stability team as to the impact of for example discontinuing the POGO (Philippine offshore gaming operators) in the Philippines. What is the impact on real estate and the economy? So we are already studying the possibility of putting some sense into this online gambling,” BSP Governor Benjamin Diokno said at a forum organized by the Economic Journalists Association of the Philippines.

POGOs employ at least 130,000 Chinese nationals.

The BSP governor chairs the AMLC, with the commissioners of the Insurance Commission (IC) and the Securities and Exchange Commission (SEC) as members.

“We are looking at the economic risks of having POGO here. One of our mandates is financial stability,” Diokno said.

According to Diokno, the Department of Finance headed by Secretary Carlos Dominguez III is looking at the issue’s tax component while the BSP is concerned with the financial stability issue.

Citing a study on tax evasion by POGOs, Diokno said authorities are concentrating on real estate risks and their impact on the food industry.

“It’s a study for the guidance of the Monetary Board and AMLC. (It is) not necessarily (for money laundering), but you know the impact for real estate for example. What if they suddenly decide to pack up and leave? What will happen to the sector? What will happen to the food industry?” he added.

Diokno said the study began before China urged the Philippine government to stop POGO operations.

Last week, China’s foreign ministry spokesman Geng Shuang urged the Philippines to ban all online gambling as it intensifies its crackdown on offshore gambling to prevent its citizens from being lured into an industry blamed for rising crimes and social problems in the mainland.

“We hope the Philippines will go further and ban all online gambling. We hope it will further strengthen law enforcement with China and jointly tackle criminal activities including online gambling and cyber fraud,” Geng said.

The Chinese embassy in Manila has also urged the Philippine government to protect the rights of Chinese nationals working in POGOs, saying many of its citizens were illegally recruited and were exposed to “modern slavery.”

It said gambling fuels crimes such as cross-border money laundering through underground banking, adding that huge amounts of dirty money from China illegally flowed into the Philippines.

The Duterte administration has also exerted pressure on illegal Chinese online gaming activities including strictly taxing them, possibly transferring all POGO operations to self-contained hubs, and suspending processing of new POGO applications by the Philippine Amusement and Gaming Corp. (Pagcor).

The POGO sector has been driving up property prices in the country as demand for office and residential spaces has significantly ballooned in the past months.

Data from Pagcor showed there are currently 58 licensed POGO operators in the country.

But as the government moves to restrict POGOs, the Department of Labor and Employment (DOLE) yesterday reported a growing demand for casino dealers in the country.

DOLE said demand for casino dealers in the last five weeks rose significantly, based on the department’s internet-based job and applicant matching system.

In the weekly report on Top 20 vacancies on PhilJobnet by the Bureau of Local Employment, a huge demand for casino dealers was recorded from July to Aug. 16 .

As of the latest report, at least 180 casino dealer positions were logged at PhilJobnet, making it the Top 14 vacancy in the job matching system. Call center agent, however, remained on top of the list of most sought-after jobs.

Salaries of online casino dealers, according to PhilJobnet post, range from P20,000 to P23,000.

The position requires the ability to host and provide a positive, engaging and professional gaming experience; precision, skill and professionalism in dealing with specific table games and capability in thoroughly ensuring accuracy in software performance.

Benefits, such as daily meal, life insurance, health card, Christmas bonus, medical and optical reimbursement and paid leaves were among the listed perks.

High school and college undergraduates and degree holders of any discipline can qualify as a casino dealer.– Mayen Jaymalin