Things are starting to look pretty dire for the Philippine Offshore Gambling Operators (POGOs). New information revealed by the Bureau of Internal Revenue (BIR) reveals just how much the industry has shrunk, and suggests the trend won’t change unless major developments occur.
Of the previously operating 63 licensed POGOs, the BIR notes that only 15 are currently operating. Workforces have also been cut by as much as 70% to comply with Covid-19 protocols.
The primary reason so few POGOs are back to operations are due to low revenues, but Covid-19 precautions played a major role too. The bureau noted that after many Chinese workers visited their homeland for the Chinese New Year, many could not return due to restricted travel.
But other factors are definitely in play. Taxes have been raised on the industry, decreasing its total profitability even if they do resume operations. A POGO lawyer told the Manila Bulletin the new tax rates are “unreasonable.”
The end result, as a BIR official put it, is that many POGOs simply won’t recover until there’s a Covid-19 vaccine available, and even then, they will need tax rates reduced.
Meanwhile, the Philippine National Police (PNP) has a new boss in General Debold Sinas. The top cop now expected to play some role in policing POGOs brings with him a lot of controversy, and arguably hypocrisy. He was mired in scandal earlier this year when it was revealed he had a birthday party, flouting Covid-19 social gathering restrictions.
He’s now instituting new guidelines for police officers that reveal how far law enforcement needs to progress in the Philippines. He’s reiterated the agency’s policy prohibiting golfing or gambling during work hours, which is an alarming thing to have to remind police officers.
In January, Sinas also commanded his officers to get in shape, as obesity had become a problem amongst Manila’s police force. A rotund man himself, he noted that he was the first target of the new order.
Which will come first, a return of POGOs, or the PNP getting into shape and stopping their own gambling activities? At the rate POGOs are shutting down, we may know sooner than later.
