PH POGO Shutdown: Economic Fallout and Social Challenges Loom

The Philippine government’s decision to shut down the Philippine Offshore Gaming Operator (POGO) industry has sparked a whirlwind of changes, impacting thousands of workers and foreign nationals, and raising concerns about the economy. As the December 2024 deadline approaches, various challenges continue to unfold, from unemployment to human trafficking and the potential exodus of foreign workers.

As of December 2024, the Department of Labor and Employment (DoLE) has completed profiling nearly 28,000 workers affected by the POGO ban. While job fairs and livelihood programs have been set up to assist these workers, there are growing concerns that not all displaced employees will find suitable replacement jobs by the deadline. According to estimates, the total number of Filipino workers expected to lose their jobs in the industry could reach up to 30,000. This includes workers from 51 companies across Metro Manila, as well as service providers and business process outsourcing (BPO) firms that serviced the POGO industry.

DoLE Secretary Bienvenido Laguesma expressed optimism about assisting a significant portion of those affected, through measures such as upskilling programs tailored to workers’ IT and BPO expertise. However, experts warn that many workers may struggle to find new opportunities, as the demand for their skills is still uncertain. Many foreign nationals working in the POGO industry, mostly from China, will also be impacted by the shutdown. The Bureau of Immigration (BI) expects over 20,000 foreign workers to depart the country in the coming months, as their employers close operations.

The shutdown is also shedding light on other serious social issues, including human trafficking and illegal activities associated with POGOs. In particular, there have been reports of children being abandoned by foreign POGO workers. The Philippine Anti-Organized Crime Commission (PAOCC) has been working to address these cases, with the latest reports indicating that 15 children were recently abandoned by foreign workers. Additionally, advocacy groups have raised alarms about the increasing vulnerability of Filipino workers to exploitation and trafficking in the wake of the shutdown.

As the ban deadline nears, rumors and misinformation have spread online, with vloggers allegedly circulating fake news about the shutdown’s impact. The government has issued warnings to those spreading such content, emphasizing the importance of verifying information before sharing it. This has become a critical issue as confusion surrounding the shutdown could add to the already significant stress and uncertainty felt by workers.

Meanwhile, some foreign workers are reportedly leaving the Philippines ahead of the deadline, as many prefer to exit before the crackdown intensifies. The BI is working closely with other agencies to ensure that foreign nationals comply with the mandated exit before the end of the year. These departures are expected to further impact the economy, particularly in sectors reliant on foreign expertise.

The ban on POGOs has undeniably created a cascade of economic and social challenges for the Philippines. While efforts to address these issues are underway, the true impact of the shutdown will likely be felt long after the deadline passes. The government’s response to the crisis will determine how quickly the country can recover from the economic fallout while also addressing the deep-rooted problems tied to the gambling industry. The coming months will be crucial as the Philippines navigates this turbulent period, balancing the need for public safety with the welfare of its workers and the broader economic stability.

Photo credit: PHILIPPINE STAR/EDD GUMBAN