Philippine President Ferdinand R. Marcos Jr. signed an important executive order on November 5, 2024, aimed at imposing a comprehensive ban on Philippine Offshore Gambling Operators (POGOs). Under this executive order, all forms of offshore gambling, iGaming, and other related offshore gambling businesses will be immediately prohibited in the Philippines.

The scope of this ban is quite broad, covering all types of offshore gambling activities currently operating in the country. Relevant government departments have been instructed to use this executive order as the basis for enforcement, and any violations of the ban will be strictly penalized. Therefore, starting from January 1, 2025, any individual or organization attempting to continue or newly engage in offshore gambling businesses will face legal sanctions.

Philippine Gambling Ban

Executive Order No. 74

Immediate Ban on Offshore Gambling, iGaming, and Other Offshore Gambling Activities in the Philippines

Whereas: Maintaining peace and order, protecting life, liberty, and property, and promoting the general welfare are basic national policies under Section 5, Article II of the Constitution;

Whereas: Under Section 10 of Presidential Decree No. 1869, as amended by Republic Act No. 9487, the Philippine Amusement and Gambling Corporation (PAGCOR) is authorized to license and regulate gambling establishments, clubs, and other similar recreational or amusement venues in the Philippines, except those governed by other government-licensed agencies;

Whereas: PAGCOR, pursuant to its mandate, established the rules and regulations for Offshore Gambling Operators (POGO) and Internet Gambling Licenses (IGL), including the POGO Rules and Regulations, Offshore Gambling Regulatory Handbook, and Internet Gambling Licensing Rules, which require POGO/IGL companies and their agents to obtain a license or authorization from PAGCOR to operate in the Philippines;

Whereas: Certain special economic zones, tourist zones, or freeport management agencies are authorized under their charters to directly or through licenses operate casinos within their jurisdictions;

Whereas: Republic Act No. 9490, known as the 2007 Aurora Special Economic Zone Act, as well as Republic Acts Nos. 10083 and 11590, created the Aurora Pacific Economic Zone and Freeport Authority (APECO), which is empowered to manage and operate the Aurora Pacific Economic Zone and Freeport, including managing casinos and tourism-related activities, including gambling and entertainment, through subsidiaries or independently; however, any offshore gambling licenses issued by APECO must be regulated by PAGCOR;

Whereas: Republic Act No. 9728, known as the 2009 Bataan Freeport Zone Act, created the Bataan Freeport Zone Authority, which has the authority to manage and operate within the Bataan Freeport Zone, including the power to issue licenses for gambling-related activities, provided these are approved by PAGCOR.

Whereas: According to a study conducted by the Department of Finance (DOF) in the Philippines, the risks and negative impacts of POGO activities—such as increased crime rates, social instability, and exploitation of vulnerable groups—significantly outweigh the economic and social benefits brought by the industry;

Whereas: The Anti-Money Laundering Council (AMLC) report indicated that POGOs are prone to illegal financial activities such as money laundering and fraud, which pose a serious threat to the integrity of the national financial system;

Whereas: The high reputational risks associated with POGO/IGL businesses may damage foreign investment and tourism, hindering the government’s efforts to position the Philippines as a secure and sustainable destination for investment and tourism;

Whereas: The Supreme Court has consistently held that government-granted franchises are privileges, not vested rights, and can therefore be amended, altered, or revoked by law;

Whereas: The state has a primary duty to ensure national security, maintain public order, uphold the law, protect citizens' safety, and preserve social morality;

Whereas: In the fulfillment of this responsibility, the decision to comprehensively ban POGO/IGL businesses was announced during the State of the Nation Address on July 24, 2024;

Whereas: Article 17, Chapter 7 of the Constitution grants the President control over all executive departments, bureaus, and offices to ensure the faithful execution of the laws;

Therefore, I, Ferdinand R. Marcos Jr., President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, hereby order as follows:

Section 1. Scope: This order covers the following as defined under the POGO Rules and Regulations, Offshore Gambling Regulatory Handbook, iGaming Licensing Rules, and Republic Act No. 11590:

a. Philippine Offshore Gambling Operators (POGO): Refers to entities that provide and engage in offshore gambling services, including POGO license holders authorized by PAGCOR, agents and service providers in the Philippines, and companies registered in the Philippines that offer supporting services to POGOs.

b. Offshore Gambling Operations/Services: Refers to iGames of chance, limited to live electronic casino (e-casino) games, Random Number Generator (RNG) games, and iSports betting, offered exclusively to foreign players outside the Philippines, via the internet or online platforms. This definition does not include games of chance conducted at PAGCOR-authorized casinos, licensed casinos, or resorts operating under gambling agreements.

To enforce this order, POGO or offshore gambling services/operations include the following:

i. iGaming Licenses (IGL): Refers to business licenses for operations offering iGambling products specifically to overseas customers, limited to live e-casino games, RNG games, and iSports betting. The IGL in this order includes: (a) locally established, reputable, and financially stable companies in the Philippines representing foreign IGL license holders; and (b) authorized game content providers or support service providers, all of which are legitimate companies offering components of internet gambling operations in the Philippines.

ii. Other Offshore Gambling Licenses: Refers to licenses issued to other offshore gambling operators, whether registered abroad or in the Philippines, holding valid gambling licenses through special economic zone authorities, tourism zone authorities, or free port authorities, permitting the acceptance of offshore bets. Other offshore gambling licenses in this order also include legitimate service providers offering auxiliary services to licensed companies.

Section 2. Ban on POGO/IGL and Other Offshore Gambling Operations: In the interest of national security, public safety, order, and law enforcement, this order prohibits POGO/IGL and other offshore gambling operations, including the following:

a. Illegal Offshore Gambling Operations: Any POGO/IGL and other offshore gambling operations that lack the necessary licenses, permits, or authorizations are considered illegal, as per Section 2 of Administrative Order No. 13 of 2017, and will be strictly targeted by law enforcement.

b. License Applications: PAGCOR will no longer accept any new applications for licenses, permits, or authorizations for POGO/IGL and other offshore gambling operators, nor will it accept applications for auxiliary or affiliated services related to these businesses. All offshore gambling operations or services within the Philippines, governed by PAGCOR or other government licensing authorities, will no longer be authorized.

c. License Renewal: No existing POGO/IGL licenses, permits, or authorizations, nor related licenses for other offshore gambling operators and auxiliary service licenses, will be renewed or extended.

d. Cessation of Operations: All POGO/IGL and other offshore gambling operators, as well as their auxiliary service providers, must cease all operations, including winding down their affairs, by December 31, 2024.

Section 3. Comprehensive Strategy: To effectively enforce the ban on POGO/IGL and other offshore gambling operators, the following Technical Working Groups (TWGs) will be established to develop and implement a comprehensive strategy:

a. Employment Recovery and Reemployment Technical Working Group: Responsible for addressing the following issues: (i) Assessing the impact of the ban on various economic sectors. (ii) Ensuring that affected Filipino workers receive assistance and a safety net, including skills upgrading and retraining programs, so that they can quickly obtain alternative employment opportunities.

The working group members will include representatives from the following agencies:

Chairperson: PAGCOR

Vice-Chairperson: Department of Labor and Employment (DOLE)

Members: Department of Finance (DOF), Department of Trade and Industry (DTI), Department of Budget and Management (DBM), Department of Social Welfare and Development (DSWD), Department of Information and Communications Technology (DICT), National Economic and Development Authority (NEDA).

b. Anti-Illegal Offshore Gambling Operations Technical Working Group: This working group will be responsible for: (i) Strengthening enforcement against all illegal POGO/IGL and other offshore gambling operators, especially those without the necessary licenses or authorization. (ii) Promoting, coordinating, and ensuring timely investigation of individuals engaged in illegal gambling activities, properly collecting evidence, and ensuring protection through appropriate law enforcement actions. (iii) Holding violators accountable through legal procedures. (iv) Initiating or accelerating deportation proceedings for foreign nationals involved in illegal offshore gambling, in accordance with relevant immigration laws and regulations. (v) Continuing monitoring of the implementation of the ban until POGO/IGL and other offshore gambling operations are fully terminated.

The working group members will include representatives from the following agencies:

Chairperson: Presidential Anti-Organized Crime Commission (PAOCC)

Vice-Chairperson: Department of Justice (DOJ)

Members: Department of the Interior and Local Government (DILG), Philippine National Police (PNP), Bureau of Immigration (BI), National Bureau of Investigation (NBI), Anti-Money Laundering Council (AMLC), Securities and Exchange Commission (SEC), Cagayan Economic Zone Authority.

The heads of these agencies will designate representatives at the level of at least Assistant Secretary or equivalent to join the TWG and make decisions on behalf of their respective agencies.

In carrying out these directives, the TWG may seek support from other national government agencies (NGAs), government-owned or controlled corporations (GOCCs), and other instrumental organizations, as well as consult private sector stakeholders, advocacy groups, and non-governmental organizations to assist in achieving the goals of this order.

Immigration Bureau, National Bureau of Investigation (NBI), Anti-Money Laundering Council (AMLC), Securities and Exchange Commission, and Cagayan Economic Zone Authority:

The heads of the above-mentioned agencies should designate representatives at the level of at least Assistant Secretary or equivalent to join the Technical Working Groups (TWGs), and authorize them to make decisions on behalf of their respective agencies.

In carrying out the directives mentioned above, the TWGs may seek support and assistance from other national government agencies (NGAs), government-owned or controlled corporations (GOCCs), and other instrumental organizations, or consult relevant private sector businesses, stakeholders, advocacy groups, and non-governmental organizations to assist in achieving the goals of this order.

Section 4. Instructions for National Government Agencies:

a. The Presidential Anti-Organized Crime Commission (PAOCC), the Philippine Drug Enforcement Agency (PDEA), and other law enforcement agencies such as the Philippine National Police (PNP) and National Bureau of Investigation (NBI) must intensify efforts to combat illegal POGO/IGL and other offshore gambling operations and services.

b. The Department of Human Settlements and Urban Development (DHSUD) is tasked with assisting the Anti-Illegal Offshore Gambling Operations TWG to ensure that homeowners' associations cooperate in preventing POGO/IGL and other offshore gambling operations from entering residential areas, condominiums, and other real estate developments. The DHSUD should immediately report any such activities to the TWG.

c. The Department of Tourism (DOT) will monitor tourism establishments and facilities to ensure they are not being used for POGO/IGL and other offshore gambling operations or services.

d. PAGCOR and the Bureau of Internal Revenue (BIR) are responsible for expediting the collection of applicable fees and taxes from the offshore gambling industry in compliance with relevant laws.

All other government agencies, government-owned or controlled corporations (GOCCs), and instrumental organizations are also expected to provide necessary support to ensure the successful implementation of this order.

Section 5. Local Government Support: Local government units (LGUs) are required to fully support and take effective actions to enforce the ban on POGO/IGL and other offshore gambling services and operations within their jurisdictions. LGUs should implement relevant regulations and have the authority to issue ordinances that prevent, suppress, and punish various illegal activities, including gambling and other prohibited games, as provided in Sections 447, 458, and 7160 of the Local Government Code of 1991 (Republic Act No. 468).

To achieve this, the Department of the Interior and Local Government (DILG) will work with LGUs to ensure that POGO/IGL and other offshore gambling operations do not occur or spread in their areas. Additionally, the DILG will provide a channel for LGUs to report any entities involved in POGO/IGL or other offshore gambling operations within their regions.

Section 6. Private Sector Support: In the interest of fairness, justice, and the principles of equity, the private sector is urged to waive any interest, fees, or other related charges that may arise from contracts or services with POGO/IGL and other offshore gambling operators affected by this order. This includes termination fees for services such as property leasing, security, internet, and electricity. This is intended to facilitate the immediate closure of POGO/IGL and other offshore gambling operations.

Section 7. Implementation Guidelines: Where necessary, the Technical Working Groups (TWGs) are tasked with issuing specific guidelines for the implementation of the provisions outlined in this order. These guidelines will help in carrying out the directives efficiently and effectively.

Section 8. Funding: The funding required for the execution of this order will be provided from the available budgets of the relevant agencies, in accordance with applicable budget and auditing regulations. For future years, the funding should be incorporated into the regular budgeting process of the respective agencies.

Section 9. Reporting Requirements: The following reports are to be submitted to the President and processed through the Office of the Executive Secretary:

a. The TWGs must submit: (i) Monthly reports on the implementation of the POGO/IGL ban and the comprehensive strategies outlined in Section 3. (ii) A final report by December 31, 2024, on the complete cessation of POGO/IGL operations and the completion of the comprehensive strategies.

b. The Presidential Anti-Organized Crime Commission (PAOCC) should submit a monthly report on its coordination with relevant agencies in law enforcement actions, and a final report after the completion of the order's objectives.

All other relevant agencies involved must also report their activities and coordinate through the TWGs.

Section 10. Sanctions: Failure to comply with any provisions of this order will result in administrative and disciplinary action against government officials or employees, in accordance with current laws and regulations. Additionally, any individual involved in or supporting illegal offshore gambling activities in the Philippines will face severe legal penalties, including criminal prosecution and fines, to ensure comprehensive sanctions and serve as a deterrent.

Section 11. Severability: If any provision of this order is found to be invalid or unconstitutional, the remaining provisions will continue to remain in full force and effect, and the rest of the order will be enforced as intended.

Section 12. Repeal: All previous orders, rules, regulations, guidelines, and directives that are inconsistent with the provisions of this order are hereby repealed, amended, or otherwise modified as necessary to align with this directive.

Section 13. Effectivity This order takes effect immediately after being published in the Official Gazette or a widely circulated newspaper.

Signed on November 5, 2024, in Manila.

Philippine Gambling Ban - Executive Order and Its Impact

On November 5, 2024, the President of the Philippines signed Executive Order No. 74, which immediately bans all Philippine Offshore Gambling Operations (POGO), internet gambling (IGL), and other related offshore gambling businesses. The order highlights the negative social issues, risks of financial crime, and damage to the country’s international reputation caused by offshore gambling, outweighing the economic benefits. As a result, the President has imposed a complete ban, ordering the shutdown of all POGO and IGL businesses.

Impact on the Gambling Industry

This order essentially serves as a "shutdown" for the Philippine offshore gambling sector. The gambling companies' licenses are revoked, and their operations must cease. No new licenses or authorizations will be granted in the future. This will lead to the complete disappearance of the gambling industry in the Philippines, particularly those catering to foreign clients. This indicates the end of legal gambling operations in the country, although underground activities remain outside the scope of this order.

Impact on Gambling Companies:

• License Revocation and Business Termination: All existing POGO/IGL licenses will not be renewed, and companies are required to close by December 31, 2024. This means gambling companies must exit the Philippine market entirely within this timeframe, halting all online gambling and related activities.
• No New Licenses Issued: PAGCOR and other licensing authorities will no longer issue new POGO/IGL licenses, thus preventing future operations of online gambling businesses. This effectively blocks the growth of the industry and forces existing companies to exit.
• Termination of Affiliate Services: All affiliate services related to gambling companies, such as IT support and content providers, will also cease. This will have a direct impact on service providers that depend on the gambling sector.

Impact on Local Filipino Workers:

• Unemployment and Reemployment: With all POGO companies shutting down, a large number of Filipino workers will lose their jobs, especially those involved in customer service, technical support, and finance.
• Employment Assistance and Retraining: The order mentions the creation of a Technical Working Group (TWG) led by PAGCOR and the Department of Labor and Employment. This group will help displaced workers by providing assistance and training to help them find new employment. However, relocating all displaced workers in the short term may present challenges.

Impact on Foreign Workers in Gambling Companies:

• Deportation and Expedited Removal: The order mandates that law enforcement and immigration authorities expedite the deportation of foreign workers involved in illegal gambling activities. Many foreign workers, particularly from China and other Asian countries, employed in POGO businesses face the risk of deportation. This will affect not only their personal lives but also result in a significant loss of foreign labor in the gambling industry.

Impact on Government and Law Enforcement:

• Comprehensive Strategy and Interagency Cooperation: To enforce this ban, the government will form various technical working groups, including teams focused on employment recovery and anti-illegal offshore gambling operations. Law enforcement agencies such as the Presidential Anti-Organized Crime Commission, Philippine National Police, and National Bureau of Investigation will intensify efforts to combat illegal POGO operations, investigating and penalizing unlawful operators to ensure the full implementation of the ban.
• Local Government and National Department Accountability: The order requires local governments and relevant departments, such as the Department of Tourism and Bureau of Internal Revenue, to cooperate in preventing POGO gambling businesses from continuing operations in their jurisdictions and to closely monitor compliance. This means the government will dedicate more resources and efforts to oversee and enforce the ban.

Private Sector Involvement and Impact

• Private Sector Cooperation in Closing Businesses: The order suggests that private sector companies, such as those providing property leasing, internet services, and security, should be exempted from penalties or fees for terminating contracts related to POGO/IGL businesses. This is intended to facilitate the smooth closure of these operations. While this might impose economic pressure on suppliers who rely on the POGO industry, the aim is to ensure that the necessary services are ended without additional disputes.

TC-Gaming White Label Editor's Additional Summary.

• The Philippine Gambling Ban - Executive Order No. 74 imposes a comprehensive ban on Philippine Offshore Gambling Operations (POGO), Internet Gambling (IGL), and the offshore gambling industry, requiring all companies to cease operations by the end of 2024.
• For ordinary workers, this means the risk of unemployment, but the government is also working to provide reemployment support.
• For gambling operators, they will face business termination, license cancellations, and no possibility of future expansion.
• For the government and law enforcement agencies, the ban increases the workload of enforcement and regulation."

Punitive Measures in Executive Order No. 74

Regarding the penalties in Executive Order No. 74, the order indeed includes specific punitive provisions for companies and individuals who violate its regulations, particularly in Section 10, which addresses sanctions:

Penalty Measures and Sanction Details:

• For government officials or employees who fail to comply with the order: Any government official or employee who fails to comply with the provisions of this order will be subject to administrative and disciplinary action.
• For individuals supporting or assisting illegal gambling: The order clearly states that any individual who participates in, supports, funds, assists, or tolerates illegal offshore gambling activities within the Philippines will face severe legal penalties in accordance with the law.
• Sanctions for gambling operators: Gambling operators who continue to operate or attempt to circumvent the ban will be considered illegal entities and will face strict enforcement actions from law enforcement agencies.
• Expulsion of foreign workers: The order requires the Bureau of Immigration and other law enforcement agencies to expedite the deportation process for foreign workers involved in illegal gambling. Foreign workers engaged in illicit activities will not only be deported but may also be blacklisted and prohibited from re-entering the Philippines.

Summary: Has the Philippine Gambling Industry Come to an End?

The introduction of Executive Order No. 74, which enforces a complete ban on Philippine Offshore Gambling Operations (POGO) and other related offshore gambling activities, essentially marks the end of the offshore gambling industry in the Philippines. The order's comprehensive scope and strict measures not only block the operational possibilities for gambling companies but also ensure that the individuals involved will no longer be able to engage in similar businesses within the country. As this order is enforced, the Philippine gambling industry, particularly offshore gambling catering to foreign clients, will cease to exist. Legal gambling businesses are no longer allowed to operate in the Philippines.

Total Ban on Offshore Gambling Operations

The order completely prohibits the issuance or renewal of POGO and IGL licenses, requiring all existing companies to shut down by December 31, 2024. This means all legal offshore gambling operations must cease, with no possibility of continuation.

Crackdown on Illegal Gambling

Law enforcement will rigorously enforce the ban, targeting any attempts to bypass it and continuing illegal gambling operations. A multi-agency approach will ensure the elimination of illegal gambling activities nationwide, including the deportation of foreign workers and the confiscation of assets from prohibited operators.

Collaboration with Local and Private Sectors

The government has required cooperation from local governments and private companies to enforce the ban. For instance, POGO companies will be prohibited from leasing office spaces or receiving essential services, effectively shutting down their operations within the country.

Severe Penalties and Sanctions

Section 10 of the order imposes severe penalties on individuals and companies continuing to participate in or support illegal gambling, including criminal prosecution, fines, and even deportation for foreign nationals, ensuring strong deterrence.

As a leading white-label iGaming service provider, TC-Gaming has been closely monitoring regulatory changes in the gambling industry and is adjusting its business strategy accordingly. While the Philippine gambling ban has had a significant impact on the market, TC-Gaming remains committed to compliance and is focusing on other regions with more open policies to continue delivering high-quality services to global gambling clients. The company is also exploring new markets and enhancing its product and technological innovations to adapt to the rapidly evolving industry. Going forward, TC-Gaming will continue to expand into emerging markets, ensuring compliance and providing professional, safe, and reliable services to its clients.