The government of the Philippines has made a significant move to ban offshore gaming operators, known as POGOs, in an effort to curb the alarming rise of illicit activities associated with the industry. The ban comes as President Ferdinand Marcos Jr. takes a tougher stance against Chinese-linked operations, and as diplomatic tensions simmer between Manila and Beijing.

POGOs have emerged as a popular industry in the Philippines, catering mostly to Chinese gamblers and employing tens of thousands of Chinese and foreign nationals. However, concerns have mounted over their alleged connections to organized crime, including financial scams, money laundering, prostitution, human trafficking, kidnapping, torture, and even murder.

During a state of the nation address on Monday, President Marcos announced the total shutdown of all POGOs, garnering a standing ovation from lawmakers. He emphasized the need to put an end to the grave abuse and disrespect towards the country's system of laws. The ban will affect over 40 licensed offshore gaming operators and dozens of illicit gambling hubs in the country. President Marcos has instructed the country's gaming regulator to close all operations by the end of the year.

The decision to ban POGOs is likely to receive a positive response from the Chinese government. Gambling is largely prohibited in China, apart from Macao, and Beijing has recently cracked down on cross-border gambling, particularly in Southeast Asia.

Under President Rodrigo Duterte, the POGO sector flourished in the Philippines since it was established in 2016. Critics argue that Duterte turned a blind eye to suspected illicit activities, as the industry brought in significant revenue for the state. The Philippines became a major hub for online gaming, attracting tens of thousands of Chinese players.

The COVID-19 pandemic further exacerbated the situation, as many illicit casinos turned to scams when visitor numbers dwindled due to closed borders. Southeast Asia has witnessed an increase in online scam syndicates, resulting in substantial profits at the expense of victims worldwide.

Jaime FlorCruz, the Philippine ambassador to China, highlighted that while POGOs have contributed financially to local treasuries and created employment opportunities, the criminal activities surrounding gaming hubs have tarnished China's image among the Filipino public. FlorCruz believes that the POGO ban will benefit Philippine-China relations, offering an opportunity for cooperation on a mutually beneficial cause.

Many POGOs are known to operate in abandoned malls, converted parking lots, and cheap rented offices, prompting authorities in Manila to increase scrutiny. Recent police raids have exposed these establishments as fronts for various crimes, such as online romance scams.

The Chinese embassy in Manila has supported the ban, stating that it aims to eradicate this "social ill." The embassy revealed its assistance in shutting down five offshore gambling centers and repatriating nearly 1,000 Chinese citizens over the past year.

China's embassy in Singapore also cautioned its citizens against all forms of betting, reiterating that gambling overseas violates Chinese laws. The embassy emphasized that even if overseas casinos are legally opened, Chinese citizens participating in cross-border gambling are suspected of violating Chinese laws.

With the ban on POGOs, the Philippines aims to combat illicit activities, protect its citizens, and strengthen its relations with China. The closure of these offshore gaming operators signals a resolute approach to addressing the concerns surrounding the industry.