Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Batasan Hills, Quezon City
NINETEENTH CONGRESS
Third Regular Session
HOUSEBILL10525
_------------------------------.-..--.------------------------------------------------------__--------------
Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
GABRIHLA Women's Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUHL
--------------------------------------.-..-------------------------------------------------.--.--.--------
ANACT
BANNING pHILlpplNE OFFSHORH GAMING OpERATORs a]OGOs) AND
CRIMINALIZING THEIR OPERATIONS
EXPLANATORY NOTE
The Duterte administration laid the Philippines wide open for Philippine
Offshore  Gaming  Operations  (POGOs),  promising  myriad  "economic  benefits"  the
country  will  reap  as  "the  next  gaming  capital."    These  promises  include  "foreign
investments" in the form of companies providing online gambling services to foreigners
setting up shop here, new buildings erected in select gambling Edens, a tourism boom
from China, and the vow of the President of "job generation" for Filipinos.
The groundwork started soon after Duterte sat in power, with the issuances all
claiming  clean  intentions:  regulate  gambling.  On August  26,  2016,  the  Philippine
Amusement and Gaming Coxporation (PAGCOR) issued its Rz4/es cz#c7 Regct/crfz.o#s/or
Pfez./zzxpz.J7e  Ojorjorsfeore  Gcrmz.ng Operczfz.o#s  "to  curtail the proliferation of illegal  online
games in the country as well as to ensure that online games are properly regulated."1
PAGCOR created the Ad Hoc Licensing Committee or "Task Force POGO" which later
became the Offshore Gaming Licensing Department.
1 Foreword, PAGCOR Of f :shore Gaming Regulatory Manual, Iuly 3 , 2;OL8
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On  February  2,  2017,  Duterte  himself came  out  with  Executive  Order  13,
Strengthening the Fight against Illegal Gambling and Clarifying the Jurisdiction and
Authority  Of Concerned Agencies  in the  Regulation and Licensing Of Gambling and
Online Gaming Facilities, andf ;or Other Purposes. This ENIthorLzedpAJGCOR, CaLgzryE[n
Economic  Zone  Authority  (CEZA),  Aurora  Pacific  Economic  Zone  and  Freeport
Authority (APECO),  and Authority of the Freeport Area of Bataan (AFAB) to issue
licenses to operate online gambling activities.
Republic Act 11590 was enacted in September 2021.  In the guise of regulating
POGOs, it amended the National lnternal Revenue Code and mandated the tax treatment
of poGOs-thereby recognizing and making POGOs legitimate.
PAGCOR was proud of its numbers:   POGOs contributed P657 million in just
their first year, hitting P3.924 billion the next, and P7.365 billion in 2018.   Before the
COVID-19  pandemic,  PAGCOR  promised  expected  POGO  revenues  to  reach  P8
billion.      All   Duterte-era   heads   of  agencies,   such   as   Securities   and   Exchange
Commission and Bureau of Internal Revenue, also proclaimed hefty revenues in fees
and taxes from POGOs.
Never mind that what the Philippines essentially did was to make legal here what
is illegal somewhere else, namely, China.  Never mind that, with the influx of poGOs,
it brought with it a swarin of crimes as testified to by police raids, and by the PAGCOR
itself, Anti-Money  Laundering  Council,  and  various  other  agencies-rape,  murder,
illegal recruitment, human trafficking, prostitution, illegal detention,  inhumane labor
terms and conditions, money laundering, immigration bribery schemes, to name just a
few.    According  to  the  Cybercrime  Investigation  and  Coordinating  Center,  many
POGOs started operating during the pandemic as "scam hubs" for fcke online charity,
fake shopping websites,  fake online sellers, fake relative/friend dating and "romance
scams," fake foreign exchange investment, fake loans, and the like.  One raided POGO
in 2020 yielded, among others, enough firearms, ammunitions, and money to make a
small squad or private army funded and (trigger) happy.
With this long list of felonies and the long years that POGOs were allowed to
proliferate  in  the  country,  the  lo-hectare  POGO  hub  raided  in  Bamban  under  the
probable auspices of suspended Mayor Alice Guo might be merely the tip of the iceberg.
Still, Duterte defended POGOs, and repeatedly.2  Still, POGOs have operated-
and continue to operate now, even after his term-to the detriment of their victims: not
2 Among his statements were:
(1 ) "I will assure you under my oath of office as President of this Republic, as elected
by you, POGOs...are clean." (March 2020) and
(2) "Now, why did I allow gambling?  It's because we don't have money. x x x The
most sensible thing is really just to encourage those activities [ganbling]."  (July 2021 )
2


just the economy as a whole but, more importantly, the Filipinos caught in the POGO
web of criminality.   And their touted economic benefits have been declining,  as the
Department  of  Finance  and  other  economic  government  agencies  agree  that  the
contributions of poGOs to government revenues have actually been negligible: it never
went past 1% of GDP, even when it reached its peak in 2019.  We even are at the risk
of losing 0.8% to 1% of GDP, per the conservative estimate of the National Economic
and Development Authority in December 2023.3
It is high time to ban POGOs and criminalize their operations.  For these reasons,
immediate approval of this bill is sought.
GABRIELA Women's Party
During the COVID pandemic, Duterte even ordered that POGOs be reopened amid
the lockdouns.
3 POGO co#trz.bw/z.o" fo eco7?o77!)/ re7#crz.#s c7z.smcr/.  Simeon, Louise Maureen, The Philippine
Star, 6 December 2023
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Republic of the Philippines
HOUSE OF REPRESHNTATIVES
Batasan Hills, Quezon City
NINETEENTH CONGRESS
Third Regular Session
HOUsEB|LL10525
Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
GABRIELA Women's Party Rep. ARLENH D. BROSAS,
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL
ANACT
BANNING pHILlpplNE OFFSHORE GAMING OpERATORs aoGOs> AND
CRIMINALIZING THEIR OPERATIONS
Be  it  enacted by the  Senate  and the  House  Of Representatives  Of the  Philippines  in
Congress assembled:
SHCTION 1.  S#orf rjlJc. -This Act shall be known as the .4#fz.-POGO ,4c/ o/2024.
SEC. 2.  DecJoraJJ.o# a/Po/I.c}?. - It is a declared constitutional principle of the State
that the maintenance of peace and order, the protection of life, liberty, and property, and
the promotion of the general welfare are essential for the enjoyment by all the people
of the blessings of democracy.
It is the policy  of the  State to  ensure the  development  and protection  of the
spiritual, moral, social well-being of the people, especially the youth, the promotion and
maintenance of peace,  law,  and order,  and the promotion and preservation of moral
values and human dignity.
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It is therefore declared by the State that Philippine Offshore Gaming Operations
(POGOs) conducted within the Philippines have increasingly become a social menace
and  a  source  of unimaginable  corruption.    It  has  made  a  mockery  of our  money-
laundering, immigration, and tax laws.  It has been a source of untold criminal offenses
and heinous crimes related to the conduct of such operations, thereby making more
vulnerable  our people,  including  workers.    But  most  of all,  it  has  displaced  hard-
working Filipino people in favor of foreign workers.   It has dissipated the energy and
resources of our people and that there is a need to effectively combat this social menace
because of its increasing danger to the citizens and the State.
S;HC.  3.    Guiding  Principles  in  Prohibiting  POGOs.  - Gorvemrmeul9 yhaouch th:e
agencies tasked with duties and responsibilities under this Act, shall be guided by the
following:
a.   General welfare clause.  The maintenance of peace and order, the protection of
life, liberty, and property, and the promotion of the general welfare are essential
for the enjoyment by all the people of the blessings of democracy.
b.   Crime prevention.   Crime prevention is an increasingly important component
of national strategies for public welfare, safety, and security.  The prohibition of
POGOs  will  immediately  curtail  violations  of ilnmigration  land  laws,  laws
against  money-laundering,  murder,  kidnapping  and  serious  illegal  detention,
human trafficking, as well as laws against bribery, extortion, and corruption of
public officials, and a host other heinous crimes related to their operations.
c.   Money-laundering prevention.   The prohibition of poGOs will immediately
stop money-laundering activities committed in the course of the operations of
POGOs, and will protect our financial system from the influx of capital from
illegal sources.
d.   Vice prevention.  As with crime prevention, vice prevention is also an important
component of national strategies for public welfare, safety, and security, as well
as the protection of the family as a sacred institution.  The prohibition of poGOs
will prevent at-risk behavior and escalation of problematic behavior of people
who are into or prone to gambling.
e.   Address  immigration  corruption  and  Filipino  labor  displacement.    The
prohibition of poGOs will immediately curtail, if not stop, immigration bribery
and corruption due to the influx of foreign POGOs and POGO workers, as well
as stop Filipino labor displacement due to foregone job creation resulting from
the preference for so-called foreign investments such as POGOs.
SEC. 4.  Dcf#../i.oi! a/ rcrms. -For purposes of this Act, the following terms shall be
understood as follows:
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1.   E-ccrsz.7zo  is the  operation  of live  casino games  or random number generator-
based games;
2.   Fo7tez.gr-bczsec7 operczzor  is  a  person  in  any  foreign  country  that  engages  the
services of local gaming agents and service providers  for its offshore gaming
operations;
3.   Gcz"z.ng is  the participation  in  gambling  activities  such  as  but not  limited to
casino games, facilitation of wages in the operation of predicting the outcomes
and results of sporting and/or gambling events;
4.   Gcz772z.73g /czborcz/ory refers to any person, whether located in the Philippines or
not, responsible for the testing of gaming systems and software of all offshore
gaming  operations  and  service  providers,  and  ensuring  that  the  same  pass
technical standards established and accepted by gamingjurisdictions worldwide;
5.   Gcz7%z.#g pcrczpfeer#cz/z.cz  are apparatus,  furnishing,  or accessories used in or are
necessary for the conduct of gaming operations;
6.   £occz/ gr7mz.#g czge#/ refers to any person in the Philippines who will represent
the foreign-based operator in the Philippines;
7.   OjrFfeore grz"j.ng refers to online games of chances or sporting events via the
internet  using  a  network  and  software  or  program,  exclusively  to  offshore
authorized players.   It is broadly categorized into three (3) groups, namely, e-
casino,  pure  sports  betting,  and  sports  betting  on  regulated wagering  events
(SBRWE);
8.   Perso# refers to natural orjuridical person as defined by law;
9.   POGO refers to any person which either conduct offshore gaming operations
themselves or engage service providers;
10. POGO fec{b is a complex which houses any of the operations in the Philippines,
as  well  as  other  logistical,  administrative,  and  support  services  for  offshore
gaming operations;
11.Servz.ce  prov7.der   refers   to   any   person   in   the   Philippines   who   provides
components of offshore gaming operations in the Philippines such as, but not
limited to customer relations  services provider,  strategic  support provider, IT
support provider, gaming software platform provider, live studio and streaming
provider, and special-class BPO;
12. fporfs  bef/z.ng is the acceptance and/or facilitation of wagers in operations of
predicting  the   outcomes   and  results   of  sporting   events   such   as   football,
basketball or any collegiate, amateur, or professional games; and
13. fporfs  be/fz.ng  o#  rear/czfec7 wczgerz.73g  eve73fs  is  where  the  gaming  events  are
regulated under the jurisdiction of other countries, including live event audio and
visual feeds to customers which are regulated by a foreign government.
6


SEC. 5. PrchJ.bJ.Jcd,4cts. -It shall be prohibited for any person to conduct online games
of chance of sporting events via the internet using a network and software or program,
exclusive to offshore authorized players, within Philippine territory.   This prohibition
includes the following acts:
a.   Facilitation of any offshore gaming through any means or device within
Philippine territory;
b.   Acceptance of any form of betting for purposes of offshore gaming operations;
c.   Acting as a service provider for offshore gaming operations in the Philippines
as defined under this Act;
d.   Creation of a POGO hub in the Philippines;
e.   Establishment of a gaming laboratory in the Philippines or providing services
as a gaming laboratory;
f.   Possession ofgaming paraphemalia; and
9.   Aiding in, protecting, or abetting the conduct of any act or activity prohibited
under this Act.
EEC. 6.   Revocation Of Licenses  Granted to POGOs. - Arty Tic;e;ITse griTrited by the
Philippine government to POGOs, foreign-based operators, service providers, and local
gaming agents for purposes of offshore gaming operations in the Philippines, whether
through Philippine Amusement and Gaming Corporation (PAGCOR) or agencies and
wherever situated, are deemed withdrawn, revoked, or denied upon effectivity of this
Act.
SHC. 7.  PredJ.coJc Oj7rc#sc. - Violation of the provisions of this Act shall constitute
"unlawful activity" under RA 9160 or the 4#/z.-Mo#ey fcza4#de7~z.72g £4cJ r4A4L4/ a/ZOO/,
as  amended,  and  shall  therefore  be  subject  to  a  separate  prosecution  for  money
laundering offense in accordance therewith.  For purposes ofANIA:
a.   Any  person  with  participation  in  or  knowledge  of  any  offshore  gaming
operations in the Philippines is considered a "covered person" and
b.   Transactions  entered  into  with  the  use  of any  local  or  foreign  currency  for
purposes  of  offshore  gaming  operations  in  the  Philippines  is  considered  a
"suspicious transaction."
S;EC. 8.    Ban  on  Employment fior  POGOs;  Human  Traffilcking  Offense.  - The
employment,  engagement,  training,  or  apprenticeship  by  any  person,  by  means  of
recruitment,  hiring,  obtaining,  provision,  offer,  transport,  transfer,  or  receipt  of an
individual, whether Filipino or alien, for purposes of offshore gaming operations in the
Philippines shall constitute a violation of RA 10364 or the Expcr72cJec7 4#/z.-rrcz;#3cfrz.ng
7


z.# Perso7?s £4c/ a/20/2,  and shall therefore be subject to a separate prosecution  for
trafficking in persons in accordance therewith.
S;HC.  9.     Responsibility  Of Agencies  Issuing  Visas   and  Work  Permits.  -  The
Department of Labor and Employment (DOLE) is hereby prohibited from issuing any
work permit to any person for puxposes of offshore gaming operations.  The Bureau of
Immigration and other agencies of government tasked by law to issue visas and work
permits to aliens are likewise prohibited from issuing any visa or Alien Employment
Permit for offshore gaming operations in the Philippines.
SEC.  10.  Co"p/I.¢#cc A4lo#J.forJ.#g.  -Not  later than  one  (1)  year  after the  date  of
effectivity of this Act and armually thereafter, the responsible agencies such as but not
limited  to  Department  of Justice  (DOJ),  National  Bureau  of Investigation  (NBI),
Department of the Interior and Local Government (DILG), Philippine National Police,
PAGCOR,  DOLE,  and  the  Anti-Money  Laundering  Council  shall  submit  to  the
President of the Philippines and to both Houses of Congress Compliance Monitoring
Reports  which   shall   contain  their  actions   and   accomplishments   as   regards  the
implementation of this Act.
SEC.11.  PeJ®¢/fz.es. -Subject to Sections 7 and 8 hereof, violations of the provisions
of this Act shall be punishable as follows:
a.   First offense: imprisonment of not less than four (4) years and not more than six
(6) years and a fine of not less than One Hundred Thousand Pesos (P100,000)
nor more than Three Hundred Thousand Pesos (P300,000), with the amount at
the discretion of the court;
b.   Second offense: imprisonment of not less than six (6) years and not more than
eight  (8)  years  and  a  fine  of not  less  than  Two  Hundred  Thousand  Pesos
(P200,000) nor more than Five Hundred Thousand Pesos (P500,000), with the
amount at the discretion of the court; and
c.   Third and succeeding offenses:  imprisonment of not less than seven (7) years
and not more than ten (10) years and a fine of not less than Five Million Pesos
(P5,000,000) nor more than Ten Million Pesos (Plo,000,000), with the amount
at the discretion of the court.
If the offender is ajuridical person, the penalties shall be imposed on the entity's
responsible officers, such as, but not limited to, the president, chief executive officer,
general partner, or partner directly responsible for the violation.
8


If the offender is an alien, he or she shall summarily be deported after service of
sentence and shall forever be barred from re-entering the Philippines.
Any person convicted under this Act shall not be subject to probation.
SrfLC. T2.  Liability Of Government O:fficials and Employees. - Gorve;rrrmenit offictdrs
and  employees violating this Act shall,  in addition to the penalties  in the preceding
section,  suffer  perpetual  absolute  disqualification  from  public  office  as  defined  in
Article  31  of the Revised Penal  Code,  including the  loss  of all  rights  to retirement
benefits for any office currently and previously held.
SEC. 13.  J""##rty/ro" I+ob¢/I.o#. -Any person who serves as a witness for the
government or, voluntarily or by virtue of a subpoena, produces documents material to
the investigation or prosecution of persons for violations of this Act, shall be immune
from criminal prosecution, subject to compliance with the provisions of Presidential
Decree  1732  or  the  Decree   Providing  Immunity  from  Criminal  Prosecution  Of
Gove7`j€"e7cf Wz./7zesses, as well as the pertinent provisions of the Rules of Court.
SEC. 14.  Prosecw/z.o#, Jwdgmc#f, ¢#d For/cJ.fwrc. - In addition to what is provided
under Sections 7 and 8 hereof, any prosecution or conviction under this Act shall be
without prejudice to other proceedings under the Revised Penal  Code and pertinent
laws.
Upon   conviction,   all   buildings   or   other   structure   or   facilities,   materials,
equipment, and instruments used directly or indirectly in activities in violation of this
Act,  as well as the proceeds of such illegal act or activity,  shall be confiscated and
forfeited in favor of the government and may be disposed of in accordance with existing
laws, rules, and regulations.
SEC. 15.   Implementing Rules and Regulations. - Wlthin sixty (60) days from the
effectivity of this Act, the DOJ, DILG, DOLE,  and PAGCOR shall jointly issue the
implementing rules  and regulations:  Provz.dcc7,  772czf failure  of the these  agencies  to
promulgate the IRR within the prescribed period shall not be a bar to the effectivity of
the  provisions  of this Act,  as  well  as  the  liabilities  of responsible  officials  under
pertinent laws and rules for nonfeasance and malfeasance.
Snc. 16.  4aproprJ.a/J.o#s. - The funds necessary to implement the provisions of this
Act shall be charged against the current year's appropriations of the concerned national
government agencies.   Thereafter, such funds as may be necessary for the continued
9


implementation of this Act shall be included in their respective budgets under the armual
General Appropriations Acts.
SE:C.  17.    Repealing  Clause.  -F`apubhiic, Act  11590  or  An  Act  Ilaxing  Philippine
Offshore Gaming Operations, Amending for the Purpose Sections 22, 25, 27,106, [and]
108, and Adding New sections l 2 5-A and 228(G) Of the National Ihiernal Revenue code
Of 1997, as Amended, andf or Other Purposes .isTyere;ky re;pe;2ihed.
Section 10 of presidential Decree 1869, series of 1983, RA 7922, RA 10083, RA
9728, and Executive Order  13, series of 2017, insofar as the mandates of agencies to
issue licenses to persons for offshore gaming operations in the Philippines, are hereby
amended and modified accordingly.
Furthermore, RA 9160 and RA 10364, insofar as Sections 7 and 8, respectively,
are hereby amended accordingly.
All   other   laws,   decrees,   ordinances,   administrative   issuances,   rules   and
regulations, or any part thereof, which are inconsistent with this Act are repealed or
amended accordingly.
SHC. 18.  Sep¢robl./rty CJ¢wsc. - If, for any reason, this Act or any portion thereof is
declared unconstitutional, the remaining provisions  of this Act shall not be affected
thereby.
SHC.19.  Ejorec/z.vrty. -This Act shall take effect fifteen (15) days after its publication
in the OLorcz.cz/ Gczze//e or at least two (2) newspapers of general circulation.
Adopted,
10