When I penned a column in 2013 expressing concerns about the Philippine government’s aggressive push to establish the country as a gambling hub, I feared the social consequences that could follow.*
I feared the damage to families, the rise of prostitution, and the increase in money laundering that the proliferation of gambling operations would likely cause. Since then, my worries have not only been confirmed but also compounded by a series of troubling developments that underline the steep costs of gambling in our society.
In June 2017, a horrific incident unfolded at Resorts World Manila where a lone gunman, a former government employee with a gambling addiction, wreaked havoc in a desperate attempt to steal casino chips. This attack led to 38 tragic deaths due to a stampede and smoke inhalation. The episode laid bare the potential for gambling venues to become focal points for desperate, destructive behavior and exposed serious security gaps.
Moreover, the establishment and expansion of Philippine Offshore Gaming Operators (POGOs) introduced new dimensions of risk. POGOs, pushed by the Duterte Administration in 2016, have been associated with a rise in crime, including money laundering activities connected to the infamous Bangladesh heist, and a disturbing influx of prostitution rings catering primarily to foreign nationals employed by these operations. Senator Risa Hontiveros’s 2020 investigation into these dens revealed a grim picture of human exploitation, likening the commodification of trafficked women to ordering from a menu.
The government’s decision not only to permit but to encourage such ventures speaks to a troubling prioritization of revenue over social welfare. Gambling establishments, when not properly regulated, are linked not just to financial crimes but to deep-seated social issues, like gambling addiction, human trafficking, prostitution, money laundering and the erosion of community values.
The raids of multi-billion peso POGO facilities in Bamban, Tarlac and Porac, Pampanga further illustrate the dark underbelly of these gambling operations. In the case of the Bamban facility, police said they rescued 383 Filipinos, 202 Chinese, and 73 other foreign nationals. The ensuing arrest and deportation of 167 Chinese nationals working illegally at the Bamban POGO “scam hub” showcases the intertwined nature of gambling with organized crime and fraud.
Despite the Chinese government’s prohibition of gambling and related activities, the proliferation of these enterprises on Philippine soil continues to invite criminal elements, exposing our communities to substantial harm. The Bamban chief of police and nearly 50 police officers assigned to the Bamban Municipal Police Station have been relieved from their posts amid the investigation into illegal POGOs in the town.
POGO operations also now appear to pose a serious national security threat. Senator Hontiveros, who has led the investigation into the citizenship and possible connection of Bamban mayor Alice Guo with the POGO operations, has stated that the Senate investigation into Mayor Guo is about national security. She cited the proliferation of fake identification documents — from PhilHealth IDs to passports — adding that it was proof that Chinese POGO syndicates “have managed to obtain fraudulent Filipino identities through corrupt individuals in our government agencies.” Hontiveros also pointed to alleged hacking and surveillance activities related to POGOs in Bamban. She noted that “considering China’s aggressive influence operations around the world, it would be remiss of the Senate not to look into this angle.”
The stark contrast between the envisioned government windfall from POGOs and the grim realities should serve as a wake-up call for our gambling regulators. To think that we could harbor POGOs in our country to serve online Chinese customers when gambling is illegal in China itself was the height of folly. POGOs must go and the SONA announcement of President Ferdinand Marcos, Jr. banning them is long overdue. The regulation of mainstream gambling facilities also needs serious review. Singapore’s model of imposing restrictions, like banning ATMs in casinos and charging entry fees, is a testament to the importance of protective measures to shield citizens from gambling’s harms.
As we move forward, our leaders must reconsider the expansion of gambling in the Philippines. The evidence is clear: the social and national security costs far outweigh the promised economic benefits. Let us champion policies that protect and uplift our sovereignty, families, and communities, rather than exposing our people to greater risks.
It’s time for a concerted effort to advocate for a reevaluation of our national stance on gambling. In the spirit of the Constitution and the Family Code, we must prioritize the well-being and moral fiber of our families and communities in a growing economy marked by shared prosperity. We owe it to the next generation to foster an environment that promotes their welfare, not one that gambles it away.
*https://tinyurl.com/7frrs3m9
This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines.
Dr. Benito L. Teehankee is chairman of the MAP Shared Prosperity Committee and a full professor of management and organization at De La Salle University.