The Philippines' central bank and the Anti-Money Laundering Council are studying the impact of online gambling in the country after Chinese finance ministers raised the alarm that it may potentially be used to fund criminal activities, including money laundering.
The country's finance regulatory chief wants the AMLC and the Bangko Sentral ng Pilipinas to dig into the operations of offshore gaming companies doing business in the Philippines to enable lawmakers to implement stringent measures in reaction to criticism against this growing industry.
In a press conference last Tuesday, central bank Governor Benjamin Diokno disclosed that he had asked the AMLC to submit a report on Philippine offshore gaming operators (POGOs) - which has some 130,000 Chinese nationals as workers - in connection with China's request for local authorities to curb unlicensed Internet-based gambling.
Diokno also acts as chairman of AMLC in an ex-official function, with officials of the Securities and Exchange Commission (SEC) and Insurance Commission (IC) and as members.
"What's the impact on real estate and the Philippine economy? Diokno said, during the briefing conducted by the Economic Journalists Association of the Philippines. "We are studying the possibility of putting sense into this offshore gaming," he said.
The study, Diokno added, began even before Chinese finance officials urged their Philippine counterparts to shut down POGO operations.
An additional 40,000 Chinese employees are said to be working in the illegal gambling operations, which are the focus of an ongoing investigation by Philippine authorities.
Diokno pointed out that the Department of Finance headed by Secretary Carlos Dominguez III is studying the online gaming's tax element while the central bank is worried about the operation's negative impact on the country's financial integrity.
POGO financiers had initially agreed with tax officials for its workers to pay the Bureau of Internal Revenue their income taxes, which the Department of Finance expects to hit P2 billion per month.
For Economic Planning Secretary Ernesto Pernia, he said he would like that POGO operation to move away from mainly rural areas to ease congestion and prevent untoward incidents that may arise from the Chinese and locals.
Chinese foreign ministry representative Geng Shuang urged Philippine gaming officials to impose a total ban on all illegal gaming as China runs after offshore gambling operators to keep its citizens from being enticed into an industry that has become the major cause of social problems in the most populated country in the world.
Geng said he hopes the crackdown will "strengthen law enforcement with China as we jointly tackle crime including online gambling and cyber fraud."
The POGO industry has been lifting the Philippines' real estate prices as demand for commercial and residential spaces has risen in the last few months. Figures from the Philippine Gaming Corporation has shown that there are currently 58 licensed POGO hubs in the country.
