POGOs earnings can be used in COVID-19 fight —PAGCOR

The Philippine Amusement and Gaming Corp. (PAGCOR) on Friday said its decision to allow the controversial Philippine Offshore Gaming Operators (POGOs) to partially resume business was meant to generate funds for the government’s COVID-19 response efforts.

PAGCOR chairman Andrea Domingo earlier announced that only 30% of the total POGO workforce will be allowed to work, provided they follow precautionary measures. 

Domingo said POGOs are considered business process outsourcing (BPO) since their clients are abroad.

Businesses classified under ICT-BPO are those that are involved in non-primary business and functions, which will be allowed to operate under the existing community quarantine rule.

“The decision was reached with the intention of helping the national government raise necessary funds to combat the novel coronavirus 2019 (COVID-19) pandemic,” PAGCOR said in a statement.

Citing the revenues from POGOs as a significant source of funds that would supplement efforts to curb the health crisis, Domingo said the PAGCOR management allowed the partial reopening of POGOs, without violating guidelines provided by the government under the enhanced community quarantine (ECQ).

As regulator, PAGCOR requires all POGO licensees to remit 2% of their gross gaming revenues as regulatory fees.

The gaming regulator said that from 2016 to March 2020, it has already collected a total of P20.83 billion from POGOs in regulatory and other related fees.

From P73.72 million in 2016, revenues from POGO significantly increased to P3.12 billion in 2017; P6.11 billion in 2018; and P5.73 billion in 2019, according to PAGCOR.

“These remittances form part of PAGCOR’s contributions to the National Treasury and other mandated beneficiaries, one of which is the Universal Healthcare Law whose funding will be partly sourced from the revenues of PAGCOR,” it said.

The agency noted that partial opening of POGOs will create “ripples” in economic activity, such as the real estate industry which has earned approximately P25 billion on leaseholds and rentals alone, as POGOs occupy 1,000,000 square-meter of office space.  —LDF, GMA News