NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE 
S. N0.2B89
V'-B (£>f .I'f of ti'j ti- ' cl
24 may 21 P4 38
Introduced by Senator Win Gatchalian
AN ACT
REPEALING FOR THE PURPOSE REPUBLIC ACT NUMBERED ELEVEN 
THOUSAND FIVE HUNDRED NINETY, OTHERWISE KNOWN AS "AN ACT 
TAXING PHILIPPINE OFFSHORE GAMING OPERATIONS", AND FOR OTHER 
PURPOSES
EXPLANATORY NOTE
In 2016, the Philippine Amusement and Gaming Corporation (PAGCOR) started 
accepting licensing applications of Philippine Offshore Gaming Operators (POGO). 
During that time, the government allowed POGOs partly to replace the revenue lost 
[i.e., around Ten Billion Pesos (PhP10,000,000,000) annually] from shutting down e- 
bingo and e-games through new licensing fees.1
On 22 September 2021, Republic Act No. 11590 or "An Act Taxing Philippine 
Offshore Gaming Operations" was signed into law by President Rodrigo Roa Duterte. 
The POGO industry has undoubtedly boosted the Philippines' economy. However, 
while the POGOs has brought in revenue and jobs, the Philippines has grappled with 
a surge in POGO-related crimes, raising concerns about the industry's overall impact. 
A number of incidents have come to the Senate's attention, raising serious concerns, 
and prompting calls for investigation, such as the following:
• Raid in Clark: On 04 May 2023, law enforcers raided the compound of Colorful and 
Leap Group Company {i.e., suspected to be a POGO hub inside the Clark Freeport 
Zone). It led to the rescue of 919 foreigners and 129 Filipinos who were allegedly
1 Cordero, T., GMA News Online: "PAGCOR now processing offshore gaming license^' (14 September 2016), available at: 
https://www.gmanetwork.com/news/money/companies/581339/pagcor-now-processing-offshore-gaming-licenses/story/ (Date 
last accessed: 14 May 2024).


forced to work for a fraudulent cyber-enabled industry, victimizing their fellow 
citizens.2
• 
Raid in Las Pinas: On 27 June 2023, the National Capital Region Police Office 
(NCRPO) raided the premises of Xinchuang Network Technology, Inc. (formerly 
known as "Hong Tai"), a PAGCOR-accredited POGO service provider, wherein 
2,724 suspected victims {i.e., 1,190 foreigners and 1,534 Filipinos) of human 
trafficking were rescued at the compound along Alabang Zapote Road in Barangay 
Almanza Uno.3
• 
Raid in Pasay: On 27 October 2023, an anti-human trafficking task force led by the 
Presidential Anti-Organized Crime Commission (PAOCC) conducted a raid on Smart 
Web Technology Corp., an Internet Gaming Licensee (IGL) of the PAGCOR 
previously operating under two companies that were both PAGCOR-accredited 
POGO service provider {i.e., Freego Gaming OPC and Xushen Technology Corp.), 
located in Pasay City. It was discovered that the premises houses aquarium-style 
viewing chambers, a torture chamber, and massage parlors allegedly being used 
for prostitution.4 It was also found that Smart Web was involved in alleged labor 
trafficking and online crypto investment and love scams.5
• 
Raid in Tadac: On 13 March 2024, authorities led by PAOCC raided the premises 
of Zun Yuan Technology, Inc., a grantee of provisional IGL, at the biggest offshore 
gaming operations compound in Bamban, Tarlac. The raid stemmed from a 
complaint filed by a Vietnamese escapee for alleged human trafficking and serious 
legal detention. During the search, they found scripts of a love scam modus and 
confiscated smartphones and iPhones with possible scam transactions.6
2 Dalizon, A., People's Journal: "11 Asian nails face human trafficking raps over dark raid' (05 May 2023), available at: 
https://journalnews.com.ph/ll-asian-natls-face-human-trafficking-raps-over-clark-raid/#gsc.tab=0 (Date last accessed: 14 May 
2024).
3 Tupas, E. & Galvez, D., The Philippine Star: "2,724 POGO workers rescued in Las Pihad' (28 June 2023), available at: 
https://www.philstar.eom/nation/2023/06/28/2277042/2724-pogo-workers-rescued-las-pias (Date last accessed: 14 May 2024). 
'' Bautista, N., The Philippine Star: "Pasay shuts down POGO sex dend' (02 November 2023), available at: 
https://www.philstar.eom/nation/2023/ll/02/2308282/pasay-shuts-down-pogo-sex- 
dens#:~:text=MANILA%2C%20Philippines%20—
%20The%20Pasay%20City,for%20allegedly%20having%20prostitution°/o20dens. (Date last accessed: 15 May 2024).
5 Manabat, J., Rappler: " Internet gaming iicense hub raided in Pasay over aiieged human trafficking' (28 October 2023), 
available at: https://www.rappler.com/philippines/internet-gaming-license-hub-raid-human-trafficking-october-27- 
2023/#:~:text=Smart%20Web%20is%20the%20first,to%20PAOCC%20Undersecretary%20Gilbert%20Cruz. (Date last 
accessed: 15 May 2024).
6 Manabat, J., Rappler: " Authorities raid POGO compound in Tariac over aiieged human trafficking/' (13 March 2024), available 
at: https://www.rappler.com/nation/luzon/raid-pogo-compound-tarlac-march-13-2024/ (Date last accessed: 15 May 2024).


Public outcry over POGO-related crimes has fueled calls for a ban on the 
industry, and the calls were further intensified due to economic costs brought by such 
operations. According to the cost-benefit analysis conducted by the Department of 
Finance (DOF) in 2022, POGO operations generated economic benefits worth PhP 
133.7 to 144.5 billion annually. On the other hand, POGO operations entailed a 
staggering cost of PhP 147.7 billion annually due to foregone potential investments 
and tourism revenues, alongside costs associated in enforcement and immigration. 
This resulted in a net cost of about PhP 3.3 to 14 billion annually, which was equivalent 
to 0.01% to 0.06% of GDP, respectively. This insinuated that POGO operations have 
brought more harm than good, as the economic costs greatly outweigh the benefits 
derived from such operations.
Beyond the financial impact, the rise in human trafficking and online scams 
linked to POGOs is a moral failing we must address. Article II, Section 11, states that: 
" The State values the dignity of every human person and guarantees full respect for 
human rights." Further, in the Bill of Rights of the Constitution, Article III, Section 18 
(2), provides that: "No involuntary servitude in any form shall exist except as 
punishment for a crime whereof the party shall have been duly convicted." As 
legislators, it is our lawful and paramount duty to protect our citizens from human 
rights abuses.
Therefore, in response to ongoing concerns, this bill seeks to repeal the 
taxability of offshore gaming as provided in RA No. 11590, which is the only law that 
acknowledges ang legitimizes POGO operations in the Philippines. By doing so, the 
intent is not to go back to old tax regime, but to repeal the legitimacy of its operations 
and activities thereof. Its main goal is ultimately to outlaw and prohibit offshore 
gaming operations {i.e., now known as internet gaming operations) in the Philippines.
In view of the foregoing, the immediate passage of this measure is hereby 
earnestly sought.
N GATCRALIAN


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE
S. No2689
<■ '(©Kifc of tin' iJ Hm'.T
24 MAY 21 P4 -38
Introduced by Senator Win Gatchalian
AN ACT
REPEALING FOR THE PURPOSE REPUBLIC ACT NUMBERED ELEVEN 
THOUSAND FIVE HUNDRED NINETY, OTHERWISE KNOWN AS "AN ACT 
TAXING PHILIPPINE OFFSHORE GAMING OPERATIONS" AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Declaration of Policy. - It is a declared constitutional principle of the
2 
State that the maintenance of peace and order, the protection of life, liberty, and
3 
property, and the promotion of the general welfare are essential for the enjoyment by
4 
all the people of the blessings of democracy.
5 
As such, it is the policy of the State to ensure the development and protection
6 
of the spiritual, moral, and social well-being of the people, especially the youth, the
7 
promotion and maintenance of peace, law and order, and the promotion and
8 
preservation of moral values, human dignity, and honest labor.
9 
Thus, as a declared policy, the State should prohibit any activities and
10 
operations directly attributable to Philippine Offshore Gaming Operations as it has
11 
increasingly become a social menace and a source of unimaginable corruption. It has
12 
made a mockery of our anti-money laundering, immigration, and tax laws. It has been
13 
a source of untold criminal offenses and heinous crimes related to the conduct of such
14 
operations, especially human trafficking laws. But most of all, it has displaced hard-
15 
working Filipino people in favor of foreign workers. It has dissipated the energy and


16 
resources of our people and there is a need to effectively combat this social menace
17 
because of its increasing danger to the State and its citizens.
18 
It is therefore imperative to repeal the only law that legitimizes offshore gaming
19 
operations and, in effect, declare illegal the offshore gaming operations in the
20 
Philippines.
21 
Sec. 2. Repealing Clause. - Republic Act No. 11590, otherwise known as "An
22 
Act Taxing Philippine Offshore Gaming Operations, Amending for the Purpose Sections
23 
22, 25, 27, 28, 106, 108, and Adding New Sections 125-A and 288(G) of the National
24 
Internal Revenue Code of 1997, as Amended, and For Other Purposes", is hereby
25 
repealed.
26 
All issuances of the Philippine Amusement and Gaming Corporation (PAGCOR)
27 
or any special economic zone authority or tourism zone authority or freeport authority
28 
that issued license to any Philippine Offshore Gaming Operator on taxes, regulatory
29 
fees and permits, and the Bureau of Internal Revenue issuances on Philippine Offshore
30 
Gaming Operations are likewise repealed.
31 
Sec. 3. Report to Congress. - Not later than one (1) year after the date of the
32 
effectivity of this Act, and three (3) years thereafter, the PAGCOR or any special
33 
economic zone authority or tourism zone authority or freeport authority that issued a
34 
license to any Philippine Offshore Gaming Operator shall submit a Report to the
35 
Congress, particularly on the Committee on Ways and Means, on the cancellation of
36 
all licenses that are issued relating to offshore gaming operations.
37 
The report shall contain pertinent information as may be required by Congress
38 
with respect to the requirements of this Act.
39 
Sec. 4. Effectivity. - This repealing Act shall take effect upon its approval. 
Approved,