Philippine Government to Assist Displaced POGO Workers with New Employment Opportunities

MANILA — Department of Finance Secretary Ralph Recto announced on Tuesday plans to support Filipino workers displaced by the impending closure of Philippine Offshore Gaming Operators (POGOs), following President Ferdinand R. Marcos Jr.’s directive to terminate POGO operations by year-end.

According to Philippines News Agency, a collaborative effort between the Department of Finance (DOF) and the Department of Labor and Employment (DOLE) will focus on securing new jobs for affected workers and providing necessary reskilling and upskilling training. “We have until the end of the year to ensure that all displaced Filipino workers will have new jobs, and I think that is more than enough time,” Recto stated. This move comes in response to the President’s order during his third State of the Nation Address to wind down POGO operations, managed by the Philippine Amusement and Gaming Corp. (PAGCOR).

Recto cited a cost-benefit analysis he had previously submitted, which recommended ending POGO operations due to significant reputational risks and social costs, outweighing their economic benefits. The analysis revealed that while the net cost of POGO operations amounted to PHP99.52 billion annually, the estimated total economic benefits reached PHP166.49 billion per year. These benefits included tax revenues and gross gaming revenues, alongside income from related sectors such as real estate and transportation.

However, the total estimated economic costs were pegged at PHP265.74 billion annually, factoring in the negative impacts on foreign direct investments and the country’s appeal as a tourist destination due to POGO-related crimes. The social costs, including loss of life and other harms from criminal activities, were highlighted as critical concerns. “Banning them won’t significantly affect the economy because the costs of keeping them far outweigh the benefits,” Recto explained, expressing full support for President Marcos’ decision.

In alignment with the President’s ban, Department of the Interior and Local Government (DILG) Secretary Benjamin Abalos Jr. has instructed local government units (LGUs) to be vigilant in issuing business permits to prevent illegal activities. Abalos detailed measures to ensure the compliance of business establishments, including mandatory inspections and revocations of permits for non-compliance. He also mentioned his upcoming visit to the Visayas to investigate entities suspected of being linked to POGOs.

These actions underscore the government’s multifaceted approach to not only phase out POGOs but also mitigate the impact on affected workers and clamp down on potential illegal operations facilitated under the guise of POGOs.