The National Economic and Development Authority (NEDA) and the Department of Finance (DOF) are backing proposals to ban Philippine offshore gaming operations (POGOs) due to their negative impact on the economy.
During a recent hearing, NEDA Assistant Secretary Sarah Lynne Daway-Ducanes revealed that POGOs accounted for 0.6% to 0.7% of the country’s GDP in 2019.
However, this figure dropped to 0.2% to 0.3% last year and is expected to be around 0.3% this year. NEDA warns that if China blacklists the Philippines’ tourist sites over POGO operations, the country could lose approximately 0.8% to 1% of its annual GDP.
The DOF also cited the “social costs” and “reputational risks” associated with POGOs. They estimate that the net cost of POGO operations is around P6.99 billion per year.
The majority of POGO workers are foreign nationals, reaching a peak of 82.3% in 2019 but dropping to 51.1% last year.
The Philippine Amusement and Gaming Corporation (PAGCOR) disagrees with the ban and instead recommends intensifying monitoring and improving industry regulations. The panel will continue deliberations on the proposed ban.
Source: PhilNews24 | December 6, 2023
