RECEIVED
MAY 07 202:

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

18% Congress
First Regular Session

Office of the Minority Floor Leader

HOUSE BILL No. 6700

INTRODUCED BY REP. BIENVENIDO “BENNY” M. ABANTE, JR.,
REP. JANETTE L. GARIN, REP. JOSE CHRISTOPHER “KIT” Y.
BELMONTE, REP. CARLOS ISAGANI T. ZARATE, REP. FERDINAND
R. GAITE, REP. MA. VICTORIA V. UMALI, REP. FRANCE L. CASTRO,
REP. ARLENE D. BROSAS, REP. SARAH JANE I. ELAGO, REP.
EUFEMIA “KA FEMIA” C. CULLAMAT, REP. GABRIEL H. BORDADO,
JR., REP. LAWRENCE “LAW” H. FORTUN, REP. ARGEL JOSEPH T.
CABATBAT, REP. SERGIO C. DAGOOC, REP. GODOFREDO N. GUYA,
REP. PRESLEY C. DE JESUS, REP. ADRIANO A. EBCAS, REP. MANUEL
LUIS T. LOPEZ, REP. FLORIDA “RIDA” P. ROBES, REP. EDUARDO
“BRO. EDDIE” C. VILLANUEVA, REP. DOMINGO C. RIVERA, REP.
MARIA LOURDES O. ACOSTA-ALBA, REP. TYRONE D. AGABAS, REP.
LUISA LLOREN CUARESMA, REP. EVELINA G. ESCUDERO, REP.
JOCELYN SY LIMKAICHONG, REP. CORAZON T. NUNEZ-
MALANYAON, REP. JOSEPHINE RAMIREZ-SATO, MA. BERNARDITA
“DITAS” RAMOS, REP. DIVINA GRACE C. YU, REP. JOSEPHINE
VERONIQUE R. LACSON-NOEL

AN ACT BANNING AND DECLARING ILLEGAL PHILIPPINE
OFFSHORE GAMING OPERATORS (POGOs) AND OPERATIONS

EXPLANATORY NOTE

“In Defense, Promotion and Preservation of
Moral Values, Human Dignity, and Honest Labor.”

‘This Bill seeks to ban, prohibit and declare illegal the operation of Philippine
Offshore Gaming Operators (POGOs).


Gambling is an evil which undermines the social and economic growth of the
nation, a social menace which dissipates the energy and resources of the people. It
promotes laziness and nurtures a false hope of advancement by luck rather than hard
work. The Bible warns: “He that oppresseth the poor to increase his riches, and be that giveth to
the rich shall surely come to want? (Proverbs 22:16, KJV]

We are a nation and a people that believe in God, in law and order, and in
honest labor, hence, law must conform with and submit to the higher principles of
morality, honesty and decency.

‘Thousands of mainland Chinese nationals have taken up, and continue to take
up, residence all over the Philippines because they have been brought, and are being
brought, in by Philippine Offshore Gaming Operators (POGOs) which provide online
gambling services to foreigners. This is ironic, to say the least, because while online
gambling is illegal in China (which does not, generally, believe in God, being a communist
country) we made it legal through the operations of these POGOs (when our country
has been identified as the only Christian nation in Asia, of which we are proud of). With
this, perhaps we, Filipinos, having made legal the gambling activities of POGOs should
also be proud if our country is to be called the only Christian nation as Gambling Nest in
Asia.

‘The justification given by the government on the matter is the ‘huge’ revenue
generated from the operation of POGOs. But such expected revenue is just a drop if
compared to the revenue lost from graft and corruption. If only the Constitutional
mandates and existing pertinent laws are honestly and fully enforced, implemented,
observed and followed, we would not need the revenues from POGOs and perhaps
even from the PAGCOR itself which are all derived from gambling. If all taxes, fees,
duties, imposts, charges, dues, and the like, due the government are correctly and
properly assessed and honestly collected and paid in full; if such taxes, fees, duties,
imposts, charges, dues, and the like, collected all go to the government coffer; if all
government projects and expenditures are given the correct and honest budget; if only
government projects that are honestly necessary are implemented in all honesty and
strictly according to specifications; and if no part or portion of the budgets for such
government projects and expenditures are given to or taken by whomsoever,
government funds would be sufficient to support itself and provide for the basic needs
of the people even in times of national emergencies.

We have declared in the very Preamble of our Constitution that we are imploring
the aid of Almighty God in order to build a just and humane society and establish a
Government that shall embody our ideals and aspirations. How then can we in
conscience implore the aid of Almighty God in gambling? God is not a God of chance
but a God of design, of truth, of purpose and of assurance.

Any form of gambling ought to be outlawed and eradicated as it springs from
the love of money, and God has this to say: “she love of money is the root of all evit? {1
Timothy 6:10]. Any form of gambling thrives on cheating, deception, fraud and
dishonesty, and leads our people to covetousness and greed, and teach the character
traits which all good citizen should disdain - laziness, dishonesty, fraud and deceit. Let us
hear and listen to what the Lord said: “Behold, I set before you this day a blessing and a curse.


A blessing if you obey the commandments of the Lord your God and a curse if you will not obey”
(Deuteronomy 11:26-28).

Gambling is an evil which undermines the social and economic growth of a
nation, a social menace which dissipates the energy and resources of the people. It
cannot be justified by the amount of revenue that may be derived therefrom, for such
revenue no matter how big it may be would be totally wiped out by the irreparable
harm that results to individuals, families and society in general.

Let us accept the reality that gambling does not lift the people from the
quagmire of poverty but rather pull them down deeper into slavery and
uselessness.

‘The continued operation of POGOs is a public exhibition and a confession of
frustration over, and inability to properly address, our pitiful national economic
condition. To argue that we need the revenues generated from POGOs (and
PAGCOR for that matter) is to admit the helplessness of the national leadership and
a surrender in bended knees to the rule of the UNARMED enemy of society called
gambling. Let us hear the prophet Isaiah’s warning: “Woe unto them that decree unrighteous
decrees, and that write grievousness which they have prescribed” (Isaiah 10:1}.

But even setting aside moral and social considerations, we must wake up to the
realities that these Chinese nationals are making a mockery of our laws, peace and
order, and to our cherished moral values. Police and NBI records and operations show,
among others: their rude behavior; ‘Chinese-only’ restaurants and Chinese signages
bordering on discrimination; hotels and condominium units used by POGOs in their
operation are actually sex dens or for online prostitution; and kidnapping. Added to
these are the issues of taxes on the earnings of POGO employees, and their SSS and
Pag-Ibig covers.

In the light of all the foregoing, the immediate passage of this Bill is earnestly
requested.

BIENVENIDO “BENNY” M. ABANTE, JR.
Minority Leader
Representative - 6! District of Manila


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EIGHTEENTH CONGRESS

(CONGRESS OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

H.B. No. can

INTRODUCED BY REP. BIENVENIDO “BENNY” M. ABANTE, JR.,
REP. JANETTE L. GARIN, REP. JOSE CHRISTOPHER “KIT” Y.
BELMONTE, REP. CARLOS ISAGANI T. ZARATE, REP. FERDINAND
R. GAITE, REP. MA. VICTORIA V. UMALI, REP. FRANCE L. CASTRO,
REP. ARLENE D. BROSAS, REP. SARAH JANE I. ELAGO, REP.
EUFEMIA “KA FEMIA” C. CULLAMAT, REP. GABRIEL H. BORDADO,
JR., REP. LAWRENCE “LAW” H. FORTUN, REP. ARGEL JOSEPH T.
CABATBAT, REP. SERGIO C. DAGOOC, REP. GODOFREDO N. GUYA,
REP. PRESLEY C. DE JESUS, REP. ADRIANO A. EBCAS, REP. MANUEL
LUIS T. LOPEZ, REP. FLORIDA “RIDA” P. ROBES, REP. EDUARDO
“BRO. EDDIE” C. VILLANUEVA, REP. DOMINGO C. RIVERA, REP.
MARIA LOURDES O. ACOSTA-ALBA, REP. TYRONE D. AGABAS, REP.
LUISA LLOREN CUARESMA, REP. EVELINA G. ESCUDERO, REP.
JOCELYN SY LIMKAICHONG, REP. CORAZON T. NUNEZ-
MALANYAON, REP. JOSEPHINE RAMIREZ-SATO, MA. BERNARDITA
“DITAS” RAMOS, REP. DIVINA GRACE C. YU, REP. JOSEPHINE
VERONIQUE R. LACSON-NOEL

AN ACT BANNING AND DECLARING ILLEGAL PHILIPPINE
OFFSHORE GAMING OPERATORS (POGOs) AND OPERATIONS

Be it enacted by the Senate and House of Representatives of the Philippines in Congres assembled:
SECTION 1. Short Title This Act shall be known as the “Anti-POGO Act of 2020”.

SECTION 2. Declaration of Policy. — 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.

Itis the policy of the State to ensure the development and protection of the spiritual,
moral and 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, human dignity, and honest labor.


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Itis therefore declared by the State that “Philippine Offshore Gaming Operations” or
“POGOs” conducted within the Philippines have increasingly became a social menace
and a source of unimaginable corruption. It has made a mockery of our anti-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. 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 State and its citizens.

SECTION 3. Guiding Principles in Prohibiting POGOs. — “Philippine Offshore Gaming
Operations” or “POGOs” has become a social menace that in prohibiting these
activities, the government has been guided by the following principles:

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.

. Crime Prevention. Crime prevention is an increasingly important component

of national strategies for public welfare, safety and security. The prohibition of
these type of activities shall immediately curtail violations of Immigration laws,
‘Anti-Money Laundering Act, Tax Laws, Kidnapping and Serious Illegal
Detention, Murder, Bribery, Corruption of Public Officials and Extortion,
Human Trafficking, and host of other heinous crimes related to its operations.

. Money-Laundering Prevention. The prohibition of these type of activities

will immediately stop any form of money-laundering activities on the part of all
persons who participates in these activities and will protect our financial system
from influx of capital from illegal sources.

. Vice Prevention. As it is with crime prevention, vice prevention is also an

important component of national strategies for public welfare, safety and
security as well as protection of the family as a sacred institution, The
prohibition of these type of activities shall prevent and curtail at-risk behavior
and escalation of problematic behavior of people into or prone to gambling.

. Address Immigration Corruption and Filipino Labor Displacement

Prevention. The prohibition of these type of activities will immediately stop or
at the very least curtail immigration bribery and corruption due to the influx of
foreign POGO workers as well as stop as Filipino labor displacement due to
opportunities that were not created because of POGO activities. It will make
room for other legitimate and real foreign capital investment in the country
worthy of hiring Filipino workers.

SECTION 4. Definitions and Terms. — For this purpose, the following terms or words and
phrases shall be understood as follows:

1.

“Gaming” means participation in gambling events such as but not limited to
casino games, facilitation of wagers in the operation of predicting the outcome
and results of a sporting event and/or gaming event.

. “Offshore Gaming” refers online games of chance 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: (a) E-casino;
(b) Purely Sportsbetting; and (c) Sportsbetting on Regulated Wagering Events
or SBRWE.


. E-Casino refers to the operation of Live Casino games or Random Number

Generator based games.

. Sportsbetting is the acceptance and/or facilitation of wagers in operations of

predicting the outcome and results of sporting events such as football,
basketball or any collegiate, amateur or professional games.

. Sportsbetting on Regulated Wagering Events or SBRWE is where the gaming

events are regulated by other jurisdiction or authority, including live event audio
and visual feeds to customers but are regulated by a foreign governing body.

.. “Foreign-based Operators” refers to any person/entities in any foreign country

that will engage the services of local gaming agent and service providers for its
offshore gaming operations.

“Local Gaming Agent” refers to any person/entity in the Philippines who will

represent the foreign-based operator in the Philippines.

. “Gaming Laboratories” refers to any person/entity, 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 gaming jurisdictions
worldwide.

. “Service Provider” refers to any person/entity in the Philippines who provides

components of offshore gaming operations in the Philippines such as, but not

limited to the following:

‘a. Customer Relations Services Provider refers to any person/entity which
provide customer service to the players and cater to their various needs
through direct contact and interaction by means of any communication,
remote or otherwise.

b. Strategic Support Provider refers to any person/entity that develop or
improve the business process of any offshore gaming operations. These
persons or entities usually operate as the back-office support of the offshore
gaming operations and do not have direct contact with players.

¢. IT Support Provider refers to any person/entity that provide technical
support to any offshore gaming operations, such as but not limited to
diagnosing and solving software faults, IT maintenance, installation and
configuration of computer systems, placement and management of player
accounts, creation and programming of IT system including supply of
hardware and software for their use. Any form of IT services, except for
providing internet connection, that will facilitate offshore gaming operation
shall be considered an IT Support Provider.

d. Gaming Software Platform Provider refers to any person/entity that
provides proprietary products either as gaming systems such as sportsbook
for Sportsbetting or games itself such as RNG based games for E-casino.
This includes, but not limited to, any software program developed by the
person/entity conducting offshore gaming operations.

e, Live Studio and Streaming Provider refers to entities that provide real time
streaming of authorized gaming activities coming from live studios and/or
licensed gaming venues via the internet to the website of offshore gaming
operations.

£, Special class of BPO refers to entities that are servicing gaming operators
abroad and do not in any way handle betting but purely product marketing
and customer relations.


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10. “Philippine-based Offshore Gaming Operator/s” or POGO/POGOs refers
to any person/entities in the Philippines who will either conduct offshore
gaming operations themselves or engage the services of service providers as
defined under par. 9 of this Section.

11.“POGO Hub” 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.

12, “Gaming Paraphernalia” means apparatus, furnishing or accessories used in or
necessary in the conduct of gaming operations.

SECTION 5. Probibitive Acts.—It shall be prohibited for any person or entities, to conduct
online games of chance of sporting events via the internet using a network and software
or program, exclusively to offshore authorized players, within Philippine territory. This
prohibition includes the following acts:
‘A. Facilitation of any offshore gaming thru any means or device within Philippine
territory.
. Acceptance of any form of betting for purposes of offshore gaming operations.
. Acting as a Service provider for offshore gaming operations in the Philippines
as defined under Par. 9 of Section 4 of this Act;
. Creation of a POGO hub in the Philippines;
. Establishment of a gaming laboratory in the Philippines ot providing services
as a gaming laboratory;
F. Possession of gaming paraphernalia,
G. Aiding in, protecting or abetting, the conduct of any act or activity prohibited
or declared illegal under this Act.

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SECTION 6. Licensed Foreign-based Operators/Local Gaming Agents/POGOs. — Any
person/entities who have been licensed by the Philippine government as Foreign-
based Operators, Local Gaming Agents, POGOs, Service Providers, for purposes of
offshore gaming operations in the Philippines, thra PAGCOR, ot any other agencies,
ecozones or otherwise, are deemed withdrawn, revoked ot denied upon the approval
of this Act.

SECTION 7. Predicate Offense. — Violation of the provisions of this Act shall constitute
“unlawful activity” under Rep. Act No. 9160 (“Anti-Money Laundering Act of 2001,
‘As Amended” or “AMLA”) and shall be subject to money laundering offense and
prosecution in accordance with law. For AMLA purpose:
‘A. Any person/entity with knowledge any offshore gaming operations in the
Philippines is considered a “covered person.”
B. Transactions entered into with the use of any foreign currency for purposes of
offshore gaming operation in the Philippines is considered a “suspicious
transaction.”

SECTION 8. Ban on Foreign Employment and Human Trafficking Offense. — Vt shall be
prohibited for any person/entity to recruit, obtain, hire, provide, offer, transport,
transfer, maintain, harbor, or receive any alien, for purposes of employment or training
or apprenticeship on offshore gaming operations in the Philippines.


To recruit, obtain, hire, provide, offer, transport, transfer, maintain, harbor, or
receive a person by any means, including those done under the pretext of employment
or training or apprenticeship, for the purposes of offshore gaming operations in the
Philippines shall be considered unlawful under Section 4 of Rep. Act No. 10364
(“Expanded Anti-Trafficking in Persons Act of 2012”) and shall be punishable under
such law.

SECTION 9. Responsibility of the Bureau of Inmmigration/ DOLE. and other agencis. — The
Department of Labor and Employment (DOLE) is hereby prohibited from issuing any
work permit to any person for purposes of offshore gaming operations. The Bureau
of Immigration is likewise prohibited from issuing any visa or Alien Employment
Permit (AEP) for offshore gaming operations in the Philippines. This prohibition to
issue any visa or work permit is likewise provided to any agency of the government
tasked by law to issue visa or work permit.

SECTION 10. Implementing Ageng.- An Inter-Agency Task Force - POGOs (IATF-
POGOs), which shall have the exclusive power and function to administer and
implement the provisions of this Act, is hereby created. The IAC-SSB shall be chaired
by the Secretary of the Department of Justice and the Secretary of Department of
Interior and Local Government (DILG) as Vice Chairperson. The IATF-POGOs shall
have the following as members:

a. Sectetary of the Department of Finance (DOF);

b. Secretary of the Department of Information, Communication & Technology
@Ich
PAGCOR Chairman
|. SEC Chairman
AMLC Chairman
‘A representative from a nongovernment organization (NGO) involved in
public welfare nominated by DOF in consultation with the concerned NGOs;

mono

‘The Department Secretaries may designate their Undersecretaries as their
authorized representatives to the IATF-POGOs.

SECTION 11. Powers of the LATF-POGOs.- In addition to the respective powers of each
government agency composing the IATF-POGOs under the law, the IATF-POGOs
shall have the following powers:

‘A. To investigate any person/entity for violation of this Act;

B. To issue any orders addressed to any appropriate authority or persons in
violation of this Act, including cease-and-desist orders to any persons/entity
for violation of this Act;

C. To formulate and implement such measures as maybe necessary and justified
under this Act to prevent offshore gaming operations in the Philippines;

D. To enlist the assistance of any branch, department, bureau, office, agency or
instrumentality of the government, including GOCCs, in preventing any
offshore gaming operations in the Philippines, which may include the use of its
personnel, facilities and resources for the more resolute prevention, detection
and investigation of offshore gaming operations and prosecution of offenders
under this Act;


E. To impose administrative sanctions for the violation of laws, rules, regulations,
orders and resolutions issued pursuant thereto.

F. To institute civil forfeiture proceedings and all other remedial proceedings
through the Department of Justice for any violation of this Act, including
prosecution of money laundering offenses and other violations under this Act;

G. To receive and take action in respect of any request from foreign states for
assistance in their own anti-offshore gaming operations, as provided under this
‘Act;

SECTION 12. Compliance Monitoring Not later than one (1) yeat after the date of the
effectivity of this Act, and annually thereafter, the IATF-POGOs shall submit to the
President of the Philippines and to both Houses of Congress a Compliance Monitoring
Report on the compliance of the provisions of this Act. The report shall contain
pertinent information as maybe required by Congress with respect to the requirements
of this Act.

SECTION 13. Penalties.- Except for specific violations and prosecution under other laws
which already provided specific penalties, violations of the provisions of this Act shall
be punishable by:

‘A. First Offense: Punishable by imprisonment of not less than four (4) years nor
more than six (6) years and a fine of not less than One Hundred Thousand
Pesos (Php100,000.00) nor more than Three Hundred Thousand Pesos
(Php300,000.00), at the discretion of the Court.

B. Second Offense: Punishable by imprisonment of not less than six (6) years nor
more than eight (8) years and a fine of not less than Two Hundred Thousand
Pesos (Php200,00.00) nor more than Five Hundred Thousand Pesos
(Php500,000.00), at the discretion of the Court.

C. Third and Succeeding Offenses: Punishable by imprisonment of not less than
seven (7) years nor more than ten (10) years and a fine of not less than Five
Million Pesos (Php5,000,000.00) nor more than Ten Million Pesos
(Php10,000,000.00), at the discretion of the Court.

If the offender is a juridical entity, the penalties shall be imposed on the entity’s
responsible officers, such as, but not limited to, the president, chief executive officer,
general manager, ot partner directly responsible thereof.

If the guilty officer is an alien, he shall summarily be deported after serving his
sentence, and shall be forever barred from re-entering the Philippines.

Any person convicted for violation of any provision of this Act shall not be
subject to probation.

SECTION 14, Liability of Government Employees and Public Officials. ~ If the prohibited act
is committed by a government employee or public official, he shall, in addition to the
penalties provided for in this Act, be dismissed from his employment and shall be
disqualified from re-employment in any government office. In addition, all his
retirement benefits shall be forfeited in favor of the government.


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SECTION 15. Immunity from Prosecution. — Any person who serves as a witness for the
government ot provides evidence in a criminal case involving any violation of this Act,
for who voluntarily or by virtue of a subpoena ‘estfiandum ox duces tecum, produces,
identifies, or gives testimony on, the documents subject of or embraced in such
subpoena, may be placed under the Witness Protection Program pursuant to Republic
‘Act No. 6981, and shall be immune from criminal prosecution, subject to compliance
with the provisions of Presidential Decree No. 1732, otherwise known as “Decree
Providing Immunity from Criminal Prosecution of Government Witnesses” and the
pertinent provisions of the Rules of Court.

SECTION 16. Prosecution, Judgment and Forfeiture. - Except for specific violations and
prosecution under other iaws which already provided specific penalties, prosecution or
Conviction under this Act is without prejudice to prosecution and punishment under
the Revised Penal Code or other existing laws.

Upon conviction, all buildings or other structures or facilities, materials,
equipment and instruments used directly or indirectly in violation of this Act, and 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.

SECTION 17. Implementing Rules and Regulations. ~The IATF-POGOs shall issue the
implementing rules and regulations of this Act, within sixty (60) days from the
effectivity of this Act: Provided, That in the event the implementing rules and
regulations are not promulgated within the specified period, the specific provisions of
this Act shall immediately be executory.

SECTION 18. Appropriations, The amount 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 implementation of this Act shall be included in the budgets of the concerned
national government agencies under the annual General Appropriations Act.

SECTION 19. Repealing Clause. — For this purpose, Section 10 of Presidential Decree No.
1869 (s. 1983), Rep. Act No. 7922, Rep. Act No. 10083, Rep. Act No. 9728; insofar as
their mandate, as interpreted under Executive Order No. 13, Series of 2017, to issue
licenses to any person ot entity for purposes of offshore gaming operations in the
Philippines, as well as any agencies, are hereby repealed, revoked, and modified

accordingly.

Rep. Act No. 9160 (“Anti-Money Laundering Act of 2001, As Amended”),
insofar as Section 7 of this Act, is hereby amended and modified accordingly.

Rep. Act No. 10364 (“Expanded Anti-Trafficking in Persons Act of 2012”)
insofar as Section 8 of this Act, is hereby amended and modified accordingly.

Allother laws, decrees, ordinances, administrative orders, rules and regulations,
or any part thereof, which ate inconsistent with this Act are repealed or amended
accordingly.


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SECTION 20, Separability Clause. — If for any reason any section or provision of this Act,
or any portion thereof, or the application of such section, provision or portion thereof
to any person or entity, group or circumstance is declared invalid or unconstitutional,
the remaining provisions of this Act shall not be affected by such declaration and shall
remain in force and effect.

SECTION 21. Effetivity. —This Act shall take effect fifteen (15) days after its publication
in at least two (2) national newspapers of general circulation.

Approved: