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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The year 2024 revealed various illegal activities involving the Philippine Offshore Gaming Operators (POGOs), Internet Gaming Licensees (IGL) and other Offshore Gaming Licensees, such as human trafficking, money laundering, kidnapping, etc. Therefore, in view of maintaining the peace and order in the Philippines and to protect the life, liberty, and property, and promote general welfare of the Filipinos, Executive Order (EO) No. 74 was issued by President Ferdinand R. Marcos, Jr., ordering the immediate ban of POGOs, IGLs and other Offshore Gaming Licensees in the Philippines.
SALIENT PROVISIONS OF EO No. 74
Coverage
Section 1. Coverage. This Order shall cover the following as defined in the Rules and Regulations for POGO, Offshore Gaming Regulatory Manual, Internet Gaming Licensing Regulations, and RA No. 11590:
a. Philippine Offshore Gaming Operators refer to entities that provide and participate in offshore gaming services. POGO as used in this Order shall include:
(a) POGO Licensee which refers to a POGO duly licensed and authorized by PAGCOR to provide offshore gaming services;
(b) POGO Gaming Agent which refers to the representative/s in the Philippines of offshore-based licensees; and
(c) POGO Service Providers which refer to duly constituted business corporations organized in the Philippines which provide components of offshore gaming operations to POGOs such as strategic support provider, IT support provider, live studio and streaming provider, and gaming software platform provider.
b. Offshore Gaming Operations/Services shall refer to online games of chance, limited to livestreamed electronic casino (e-casino) games, online random number generator (RNG) games, and online sports betting, exclusively and directly offered to foreign players, located outside of the Philippines, via the internet or online means. This definition excludes online games of chance conducted in PAGCOR-operated casinos, licensed casinos, or integrated resorts with junket agreements.
For purposes of this Order, POGOs or Offshore Gaming Services/Operations shall include:
i. Internet Gaming Licensees which refer to business-to-consumer licensees whether Philippine- or Foreign-based, catering exclusively to offshore-based/foreign players, which offer or carry out online gaming products limited to livestreamed e-casino games, online RNG games, and online sports betting. IGL as used in this Order shall include:
(a) the local gaming agent which refers to a duly constituted business enterprise of good repute and financial standing organized in the Philippines who represents a Foreign-based IGL Licensee; and
(b) Authorized Gaming Content Provider or Authorized Support Provider which refers to a duly constituted corporation organized in the Philippines providing the components of internet gaming operations.
ii. Other Offshore Gaming Licensees which refer to other offshore gaming operators, whether organized abroad or in the Philippines, duly licensed and authorized, through a gaming license to conduct offshore gaming operations, including the acceptance of bets from offshore customers, issued by any special economic zone authority, tourism zone authority or freeport authority, as authorized under their respective Charters and subject to the supervision and/or jurisdiction under their respective Charters and subject to the supervision and/or jurisdiction of PAGCOR (hereinafter referred to as “other government licensing authorities”). Offshore Gaming Licensees as used in this Order shall include gaming agents and accredited service providing ancillary services to offshore gaming licensees.”
Ban of POGO/GL and Other Offshore Gaming Operations
Section 2. Ban of POGO/GL and Other Offshore Gaming Operations. In the interest of national security, public safety, and the maintenance of public order, as well as to uphold the rule of law, the ban on POGO/IGLs and other offshore gaming operations encompasses the following:
- Illegal Offshore Gaming Operations: All POGOs/IGLs and other offshore gaming operators without the necessary license, permit or authorization from the relevant government licensing authority are classified as illegal gambling entities as defined under Section 2 of Executive Order No. 12 (s. 2017), and are covered by the ongoing and intensified crackdown on illegal gambling activities being implemented by law enforcement agencies.
- License Applications: Applications for new license, permits or authorization of POGO/IGL and other offshore gaming applicants, as well as applications for other licenses, permits, or authorizations for POGO- IGL-, and other offshore gaming-related/auxiliary/ancillary services catering to the foregoing, under the authority of PAGCOR and other government licensing authorities, and within the jurisdiction of the Republic of the Philippines, shall no longer be allowed.
- License Renewals: All existing licenses, permits or authorization issued to POGO/IGL and other offshore gaming operators and POGO-, IGl-, and other offshore gaming-related/auxiliary/ancillary services catering to the foregoing, shall no longer be renewed or extended.
- Cessation of Operations. All POGOs/IGLs and other offshore gaming operations and other offshore gaming-related/auxiliary/ancillary services with issued licenses, permits or authorizations shall completely cease operations, including the winding up of their affairs, on 31 December 2024 or earlier.
Comprehensive Strategy
Section 3. Comprehensive Strategy. To develop and implement a comprehensive strategy that will effectively enforce the ban on POGO/IGL and other offshore gaming operators, the following Technical Working Groups (TWGs) shall be convened:
a. The TWG on Employment Recovery and Reintegration shall:
(i) address the impact of foregoing ban on the affected sectors of the economy; and
(ii) ensure the reintegration of displaced Filipino workers and the provision of assistance and safety nets which include upskilling and reskilling programs to ensure that these displaced Filipino workers can have replacement jobs at the soonest possible time.
The TWG shall be composed of representatives of the following:
Chairperson : PAGCOR
Vice Chairperson : Department of Labor and Employment
Members : DOF;
Department of Trade and Industry;
Department of Budget and Management;
Department of Social Welfare and Development;
Department of Information and Communications Technology;
and
National Economic and Development Authority.
b. The TWG on Anti-Illegal Offshore Gaming Operations shall:
(i) further intensify the crackdown on all illegal POGO/IGLs and other offshore gaming operators without the requisite license, authorization or permit;
(ii) facilitate, coordinate and ensure the immediate investigation of individuals engaged in the offshore gaming industry who are involved in illegal activities and secure their custody through the appropriate law enforcement agency;
(iii) ensure the prosecution of violators to the fullest extent of the law;
(iv) as may be appropriate, initiate and carry out the deportation process of foreigners employed in the offshore gaming industry, in accordance with relevant immigration laws, rules and regulations; and
(v) closely monitor the implementation of the foregoing ban until the complete termination of POGOs/IGLs and other offshore gaming operators or services.
The TWG shall be composed of representatives of the following:
Chairperson : Presidential Anti-Organized Crime Commission (PAOCC)
Vice Chairperson : Department of Justice (DOJ)
Members : Department of the Interior and Local Government (DILG);
Bureau of Immigration (BI);
National Bureau of Investigation (NBI);
AMLC;
Securities and Exchange Commission; and
Cagayan Economic Zone Authority.
The heads of the above agencies shall designate their representatives to theTWGs who shall have a rank not lower than an Assistant Secretary, or its equivalent, and who are fully authorized to decide for or on behalf of their respective heads.
In the performance of the foregoing directives, the above TWGs may enlist the support and assistance of other national government agencies (NGAs), government-owned or -controlled corporations (GOCCs) and other instrumentalities, as well as consult and provide avenues for the private sector, relevant stakeholders, advocacy groups and non-government organizations to participate in the attainment of the objectives of this Order.
Directives to National Government Agencies
Section 4. Directives to National Government Agencies. The following agencies are hereby directed to perform the following:
- The PAOCC, Philippine Drug Enforcement Agency, and other law enforcement agencies, such as the PNP and the NBI, are directed to intensify their efforts against illegal POGOs/IGLs and other offshore gaming operations and services;
- The Department of Human Settlements and Urban Development shall assist the TWG on Anti-Illegal Offshore Gaming Operations in securing the cooperation of homeowners associations to ensure the non-proliferation of POGO/IGL and other offshore gaming operations and services in subdivisions, condominiums and other real estate developments, and to immediately report any such operations or activities to the TWG on Anti-Illegal Offshore Gaming Operations;
- The Department of Tourism shall monitor tourism establishments and facilities to ensure that they are not utilized for POGO/IGL and other offshore gaming operations or services; and
- The PAGCOR and Bureau of Internal Revenue shall expedite the collection of applicable fees and taxes related to the offshore gaming industry, in accordance with relevant laws.
All other NGAs, GOCCs and instrumentalities are hereby directed to provide the necessary assistance and support towards the successful implementation of this Order.
Local Government Support
Section 5. Local Government Support. All local government units are hereby enjoined to fully support and contribute measures to effectively implement the foregoing ban on offshore gaming services and operations within their respective jurisdictions consistent with their power to enact ordinances intended to prevent, suppress and impose appropriate penalties for gambling and other prohibited games of chance under Sections 447, 458, and 468 of RA No. 7160 or the “Local Government Code of 1991,” as amended.
In furtherance of this objective, the DILG shall collaborate and coordinate with local government units towards ensuring that POGOs/IGLs and other offshore gaming operators do not operate or proliferate within their respective jurisdictions. Additionally, the DILG shall provide an avenue for local government units to report to the National Government through the DILG, any business entity involved in POGO/IGL or offshore gaming operations or services in their localities.
Section 6. Private Sector Support. In the interest of promoting fair play, equity and justice, and to support the immediate closure of POGO/IGL and offshore gaming operations, the private sector is strongly urged to waive interests, penalties, fees, and other charges attendant to the termination of ancillary contracts or services, such as, but not limited to, lease of premises, janitorial services, security, internet, and electricity, of duly licensed POGOs, IGLs or other offshore gaming operators affected by this Order.
Sanctions
Section 10. Sanctions. Failure to comply with the provisions of this Order may be a ground for administrative and disciplinary sanctions against any erring public officer or employee as provided under existing laws, rules and regulations. Further, any person or entity who participates, or in any matter supports, finances, abets or aids in illegal offshore gaming operations or services shall be dealt with to the fullest extent of the law.
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