THE Philippine Offshore Gaming Operators (POGO) have been allowed to resume operations subject to stringent restrictions due to the existing lockdown or Enhanced Community Quarantine necessitated by COVID-19.
The decision to allow the offshore gaming operations to reopen was made to help the national government raise funds sorely needed in the ongoing effort to stop the pandemic, Pagcor Chairiiman and Chief Executive Officer Andrea Domingo said.
The opening was allowed under the Information and Communication Technology Business Process Outsourcing exemption. Businesses in this classification are those involved in non-primary business and functions, but subject to existing community quarantine rule.
President Duterte himself had earlier said the country is in dire need of substantial funds to support the aid programs launched by the government for the nation’s poor families in the wake of the Enhanced Community Quarantine (ECQ) or lockdown in Metro Manila and all of Luzon from March 16 to April 15, extended to April 30, then further extended to May 15.
The ECQ was needed to stop the spread of the COVID-19 virus from person to person such as in crowded buses, rail coaches, in streets, in offices and factories, even in churches. Because of the ECQ, traditional Holy Week activities such as the Visita Iglesia were banned. So have traditional Ramadan activities. And because, all economic activity was locked down, many families faced two months without work, and therefore without income.
President Duterte has acknowledged the POGOs as good sources of government income. They paid P73.72 million – 2 percent of gross gaming revenues as regulatory fees – in 2016. This grew to P3.12 billion in 2017, to P6.11 billion in 2018, and P5.73 billion in 2019. Together with other fees, POGOs paid the government a total of P20.83 billion from 2016 to March,2020.
These form part of Pagcor’s contribution to the National Treasury and other mandated beneficiaries. One of these is the Universal Healthcare Law, which is now one of the sources of funds used in the total effort to fight COVID-19.
There is yet no end in sight for the ongoing COVID-19 pandemic and the resultant restrictions imposed by the government to slow its spread. The government will need much more funding for programs ahead and the income from the Offshore Gaming Operations are welcome additions to this total effort.
