MANILA, PHILIPPINES – Alejandro Tengco, chairman of the Philippines Amusement and Gaming Corporation (PAGCOR), has proposed exempting up to 14 special business process outsourcing (BPO) firms catering to gambling companies from the shutdown of Philippine offshore gaming operators (POGOs).
Tengco argues that these BPOs are not directly involved in gambling and that exempting them would save thousands of Filipino jobs.
Tengco has already discussed his proposal with President Ferdinand Marcos Jr., who has ordered the complete closure of all POGOs, including 43 internet gaming licensees (IGLs), by the end of the year.
The 14 specialized BPOs, catering to gaming companies in Australia, Canada, Europe, and the United States, provide employment for over 9,000 Filipino workers. An additional six companies are currently applying for special BPO permits.
Concerns and Impact of POGO Ban
Senator Sherwin Gatchalian has expressed concerns about Tengco’s proposal. He noted the potential risk of these service providers merging with gaming companies.
“You can actually merge these two entities and become one gaming company. But how easy is that to happen? That’s something that we need to analyze because we don’t want a scenario wherein we allow that but eventually morph into a gaming company.”
The shutdown of POGOs is expected to impact 40,000 gambling workers, both foreign and Filipino, with around 20,000 foreigners expected to leave the country in 60 days.
The Department of Labor and Employment (DOLE) has launched the Worker’s Transition Program to assist displaced Filipino workers.
This program aims to match workers with new job opportunities and provide necessary training and upskilling.
PAGCOR has also raised concerns about the financial impact of the POGO ban. Tengco projected a loss of P7 billion to P7.5 billion in annual revenue for PAGCOR and at least P14 billion in lost revenue for the Bureau of Internal Revenue, not including collections by the labor department and immigration bureau.
