The National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan recently asserted that the closure of Philippine offshore gaming operators (POGOs) will have “very little” impact on the country’s economic growth. Balisacan’s remarks were made during the 2025 budget deliberations at the House of Representatives, where he provided detailed insights into the economic footprint of POGOs in the Philippines.
Economic Contribution of POGOs
According to Secretary Balisacan, POGOs contribute less than one-half of 1% to the Philippines’ gross domestic product (GDP). Specifically, they accounted for 0.23% of the GDP in 2023. This minimal contribution underscores the limited role that POGOs play in the broader economic landscape of the country.
Real Estate Sector Impact
In the first half of 2024, POGOs were responsible for approximately 11% of office occupancy. Despite this notable figure, Balisacan highlighted that the real estate industry has seen a significant uptake of office spaces by various government agencies, which has mitigated any adverse effects on the sector. “We do note that the real estate industry reports a high take-up of office spaces by government, various government agencies, and that helped the situation in the real estate sector,” Balisacan remarked.
Social and Reputational Risks
Beyond the economic considerations, Balisacan emphasized the “social and reputational risk” associated with POGOs. Recent arrests prior to the ban revealed links between POGOs and serious crimes, prompting a nationwide ban on these operations. The government’s decision was driven by concerns over these risks, reflecting a prioritization of societal well-being over the marginal economic benefits provided by POGOs.
Support for the Ban
The announcement of the POGO ban received widespread support from various representatives. Surigao del Norte 2nd District Representative Robert Ace Barbers called on the public to help flush out illegal POGO workers who might be in hiding. Deputy Speaker David Suarez noted a significant decrease in SMS scams following the ban, suggesting a link between POGO activities and these fraudulent schemes. Additionally, Senator Joel Villanueva advocated for the repeal of the law taxing POGOs, further reinforcing the legislative backing for the ban.
While the closure of POGOs might seem significant at first glance, the data presented by Secretary Balisacan illustrates their minimal impact on the Philippine economy. Contributing a mere 0.23% to the GDP and accounting for 11% of office occupancy, their cessation is unlikely to create substantial economic disruption. The government’s focus on addressing the associated social and reputational risks, supported by various representatives, further justifies the ban. This decision reflects a holistic approach to national development, balancing economic metrics with societal well-being.