Manila

The Philippines President Ferdinand Marcos Jr. announced on Monday (July 22) that the online casinos catering to gamblers overseas have been banned, a major setback to the China-based gamblers operating Filipino online casinos.

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The development comes just a day after Manila and Beijing reached an understanding on the "provisional arrangement" for resupply missions to Ayungin Shoal in the West Philippine Sea, which China describes as South China Sea.

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"Effective today, all POGOs are banned," President Marcos said during his State of the Nation Address, referring to Philippine offshore gaming operators or POGOs. The Filipino president instructed the gaming regulator to cease operations of these gambling facilities by end of the year.

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These operators, which primarily target Chinese gamblers, saw significant growth during the tenure of former President Rodrigo Duterte.

Critics argue that the economic benefits of POGOs are outweighed by their reputational risks and criminal activities.

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The ban comes as lawmakers investigate into Bamban Mayor Alice Guo, who is accused of money laundering through entities allegedly linked to POGOs. Authorities have frozen up to 90 bank accounts connected to Guo and other individuals over suspicions of laundering, human trafficking, and fraud—allegations that Guo's representatives have consistently denied.

“We hear the loud cry of the people against POGOs,” Marcos declared, receiving enthusiastic applause from lawmakers. "The grave abuse and disrespect to our system of laws must stop."

The president added that POGO operators have expanded into illicit activities, including financial scams, money laundering, human trafficking, kidnapping, and even murder.

Philippines POGOs ban: What it means vis-a-vis China-Philippines ties

The ties between the two countries remain tense over Chinese show of maritime belligerence in and around the West Philippine Sea. On Sunday (July 21), more than a month after the China Coast Guard attacked Filipino soldiers during a resupply mission to Ayungin Shoal in mid-June 2024, it was announced that the two sides had "reached an understanding on the provisional arrangement" with China on these missions. 

In this agreement, Beijing wanted Manila not to bring construction materials, and to give "advance notice and the right to inspect the ships."

Manila rejected these demands and the final arrangement did not include these provisions.

The latest ban on POGOs, which will impact Chinese gamblers the most, adds to the tension between the two countries.

(With inputs from agencies)