China Blacklists the Philippines Due to Gambling Ban Non-Compliance

China Blacklists the Philippines Due to Gambling Ban Non-Compliance

China’s latest pressures towards several states to ban gambling reaches the Philippines. But, no such decision will be made soon. Officials stand firm against any changing requests. They justify this decision by showing the dire employment situation in the country. 

Let’s go into detail to evaluate whether residents should expect any legal changes or not:

Why is China pressing the Philippines to ban offshore gambling?

According to Chinese officials, gambling brings high social costs to both countries. Some contexts require few clarifications: 

• The issue addressed by China concerns POGOs (Philippine Offshore Gaming Operators). These entities provides gambling services exclusively to residents from other countries. And, the Chinese owned them mainly.
• POGOs generate substantial venues from tourism. They are one of the main reasons why foreigners come to the country. 

Thus, the consequences of Chinese individuals coming to the Philippines cause ban pressures for this purpose. The main concern includes crimes. They consist of human trafficking, scamming, and murder. This includes only three illegal acts in this industry. Many victims have been Chinese workers in POGOs. 

Hundreds and thousands of Chinese citizens travel to the Philippines. Furthermore, they work for offshore gambling operators. However, some work for those operating illegally, and officials are directing most of their reproaches towards the Chinese-owned POGOs not paying their taxes or committing other felonies. 

Philippine Offshore Gaming Operators can also provide services online, thus catering to Chinese residents and fueling addiction statistics overseas. 

According to CasinoAlpha, a gambling review company who provides service evaluations and industry insights, there are currently several dozen licensed POGOs in the market. However, the number exceeds 100. This includes illegal operators.

What does this blacklist entail?

In 2018, China developed a social credit system to help evaluate the country’s threats. The procedure involves gathering several types of information, including financial data. 

Its criteria can be applied to individuals and entities, meaning that members from both categories can be added to China’s “blacklist”. 

While the consequences of blacklisting may vary, here are several potential outcomes: 

• Loan applications may get more challenging to obtain, or they may need to be precise. 
• The citizens of a particular country may no longer be allowed to access the entity’s services.
• The entity may face scrutiny.
• Land-use rights may become more difficult to obtain, or they may not be obtainable at all. 
• Blacklisted entities may go through additional checks and paperwork. 

What would happen to the Philippines if POGOs were banned? 

It’s no secret that the economy of the Philippines is in poor condition, with gambling contributing massively to the lowering of unemployment statistics. 

In 2019, the gambling sector paid its employees the highest income out of all arts & entertainment sectors in the country. Its contribution to the state economy is also significant, as its total income in 2022 was P58.96 billion. 

However, is this money indispensable? Many believe that the answer is no, and here’s why:  

• According to statistics, those in the Philippines who benefit from jobs at POGOs are primarily Chinese individuals and not the country’s residents.
• This leaves Filipino citizens facing the same struggles as before the expansion of POGOs since their hiring chances are almost as low.
• POGOs have led to a concerningly high number of crimes, particularly money laundering and kidnapping.
• The adverse social effects seem to surpass the positive ones, as gambling addiction is also considerably more challenging to address in a country with high poverty rates.
  
  

What would happen to the Philippines if POGOs were banned? 

Assuming that the country cannot find a short-term solution to compensate for this sector’s economic contribution, other related options are still available. For instance, the state could expand other gambling industry sectors, with Macau trends being considered. To ensure this doesn’t fuel the previously mentioned social effects, though, urgent regulation would be due. 

Other industries that have received less attention since POGOs were popularized could also be brought back to the officials’ attention. While some mention real estate, achieving this with other entertainment sectors already sought after by the public would be more realistic. 

Where do the Philippines stand after being blacklisted?

The blacklisting of the Philippines surely leads to additional tension between the two countries. China has serious concerns regarding Filipino POGOs, particularly since the damaging effects of their gambling activity directly impact its citizens.

Thus, pressures for POGO dismantling will also increase over the near future. Will Filipino officials make a different decision from their current course of action? Or, will the statements made so far be eventually required legally? We have yet to see, as many contradictory resolutions have been reported since 2019. We can only hope that Filipino residents will not experience any significant negative consequences.