MANILA, (Reuters) – A justice ministry official said on Monday that the Philippines will shut down 175 offshore gambling companies and deport approximately 40,000 Chinese workers as part of a crackdown on the famously opaque online gaming business.
The industry emerged in the Philippines in 2016 and flourished rapidly as operators took advantage of the country’s lenient gaming rules to seek clients in China, where gambling is prohibited.
Philippine offshore gaming operators, or POGOs, employed almost 300,000 Chinese workers at its peak, but the pandemic and increasing taxes caused many to relocate.
“The crackdown was triggered by reports of murder, kidnapping, and other crimes committed by Chinese nationals against fellow Chinese nationals,” stated Jose Dominic Clavano, spokesperson for the Justice Ministry.
The POGOs targeted for closure had licenses that had either expired or had been canceled due to violations such as non-payment of government fees, according to Clavano, who added that deportation of Chinese workers would begin next month.
According to the finance ministry, POGO fees alone produced 7.2 billion pesos ($122.21 million) for the government in 2020 and 3.9 billion last year. Economists estimate that much bigger sums are spent on taxes, employee spending, and office renting.
In a statement, China’s embassy in Manila said Beijing supported deportation and a crackdown on POGO-related crimes, adding that the government “firmly opposes and takes tough measures to combat gambling.”