The Philippine Amusement and Gaming Corporation (PAGCOR) chairman and chief executive Alejandro H. Tengco has emphasized that alien hacking and scam syndicates, rather than legitimate Philippine Offshore Gaming Operators (POGOs), are the real threats to national security. On Tuesday, Tengco addressed the media following a controversial raid on a POGO facility in Porac, which revealed over 100 illegal workers who were allegedly subjected to torture and human rights violations. The discovered infractions have brought significant public attention and created a whirlwind of debate around the safety and regulation of POGOs.
Speaking firmly on the matter, Tengco said, “To us, the real threat are the alien hacking and scam syndicates who operate underground, and they are the ones that our law enforcement agencies are trying to locate and dismantle. We are cooperating fully with the authorities in this regard.” He pointed out that these criminal organizations, not sanctioned POGOs, are the ones engaging in illegal activities that jeopardize public safety and national security.
Defending PAGCOR’s regulatory measures, Tengco mentioned that legitimate POGO businesses licensed by PAGCOR contributed more than PHP5 billion ($85 million/€79 million/£66 million) to the organization’s gross revenues in 2023. He urged a continued commitment to targeting criminal syndicates rather than shuttering legitimate operators. “We do not need to outlaw POGOs,” Tengco argued. “What we need to do is intensify anti-crime operations against suspected alien hackers, against scammers and cyber-criminals who are usually hiding in highly secured buildings and compounds. These criminal syndicates are not engaged in offshore gaming at all, and even if they are, they are doing it illegally. So they are the real threat, and we must go after them with everything that we have.”
Tengco elaborated on the measures the regulator has implemented to ensure compliance among legitimate POGO operators. According to him, PAGCOR has embedded monitoring teams within the physical venues of all licensed gaming operators, including land-based casinos, to verify adherence to licensing terms.
. Any entities found violating these provisions face severe consequences such as fines, penalties, and potentially losing their license to operate.
The recent raid in Porac was marked by significant controversy due to alleged procedural delays and corrupt interference. PAGCOR revealed that PHP600,000 ($11,200/€10,480/£8,760) in cash, along with jewelry and illegal drugs, were seized across seven buildings within the Lucky South 99 complex. The Presidential Anti-Organized Crime Commission (PAOCC), which led the operation, indicated there were considerable expectations to find more than 1,000 workers, suggesting that some may have been tipped off in advance. Key procedural issues arose when a judge withdrew the search warrant, delaying the raid by several days.
The POGO sector, increasingly controversial within The Philippines, faces allegations of widespread corruption involving influential politicians and members of the judiciary. These controversies were exacerbated by the discovery of grave human rights abuses and the aforementioned procedural irregularities. PAGCOR, however, continues to assert that legal POGOs, which contribute substantially to the economy, should not be scapegoated for the crimes perpetrated by unsanctioned entities.
In a bid to further coordinate efforts against illicit activities, multiple state agencies joined forces in June 2023 to form the Clark Security Advisory Council. This coalition aims to streamline and intensify scrutiny and enforcement measures against illegal operations.
Additionally, in May 2023, police operations shut down the offices of CGC Technologies, a gaming service provider accused of credit card fraud and human trafficking. This raid underscored the growing urgency in addressing cyber-crime and other illegal activities masquerading as gaming operations.
Tengco reiterated PAGCOR’s stand, stating that combating the urgent issue of cyber-criminals and their syndicates requires collective effort and unwavering commitment from all stakeholders. Ensuring that legitimate operators can continue to contribute positively to the economy while safeguarding public and national security remains at the forefront of PAGCOR’s mission.
As debates continue to thrive among the public and policymakers, PAGCOR urges a more nuanced understanding that isolates bona fide POGOs from the broader criminal landscape festering within the sector, advocating that eradication efforts should be precisely targeted at the root causes of the national security threats they face.
