Economic managers downplay POGO ban's impact

Government economic managers on Tuesday downplayed the economic impact of a total ban on Philippine Offshore Gaming Operators (POGOs), noting that their contribution to GDP is less than 0.5%.

National Economic and Development Authority Secretary Arsenio Balisacan said during post-SONA discussions in Pasay City that the benefits of banning POGOs outweigh the costs, as social and reputational costs are very high compared to the small economic losses.

According to a Department of Finance cost-benefit analysis, the POGO industry had a net cost of PHP 99.52 billion or 0.41% of the country's economy in 2021, while contributing only PHP 166.49 billion in direct benefits.

President Ferdinand Marcos Jr. ordered PAGCOR to wind down POGO operations by year-end and tasked DOLE to find job opportunities for displaced workers during his third SONA on Monday.

Marcos cited criminal activities such as scamming, money laundering, prostitution, human trafficking, kidnapping, torture, and murder linked to the POGO industry in justifying the ban.

Balisacan emphasized that while POGOs contribute less than 0.5% to GDP, their presence negatively impacts tourism due to China's regulation of cross-border travel for countries hosting POGOs, making the economic losses minimal compared to social and reputational costs.