The Philippine government had previously implemented the Philippine Offshore Gaming Operators (POGO) policy, allowing domestically licensed companies to operate online gambling businesses targeting overseas markets, primarily China. This model flourished during Duterte's administration, forming concentrated industry clusters: hundreds of gambling companies moved into office buildings, employing a large number of foreign workers (mainly Chinese), and enjoyed a relatively relaxed environment for telecommunications and capital flow in the Philippines. However, as the PGO industry became intertwined with telecommunications fraud, money laundering, and other crimes, and faced strong diplomatic pressure from China and other countries, the Philippines has significantly tightened its policies in recent years, announcing a complete ban on POGO by the end of 2023. The withdrawal of the Philippines has made it inevitable for this vast industry chain to find a new foothold. Globally, which countries might become the next "POGO-style" gambling clusters?
Necessary conditions for becoming an offshore gambling cluster:
Legal/Grey Haven: Local laws must allow or tacitly permit the operation of online gambling (at least for foreign players), or there must be regulatory grey areas. The government can issue licenses to legalize operations, or although not explicitly legal, lax enforcement or corrupt indulgence protects gambling companies.
Economic Incentives: The local area seeks to introduce the gambling industry to obtain taxes, investments, and employment. Usually, economically underdeveloped countries are more motivated to attract such high-profit industries. Some countries view online gambling as part of developing the outsourcing/BPO industry, driving infrastructure and service industries.
Infrastructure Freedom: Good communication networks and international internet access, relaxed control over cross-border capital flows, facilitating the operation of gambling platforms and transnational capital settlements. Some countries even provide special parks and free trade zones to reduce regulatory barriers.
Security Control and "Pressure Resistance" Capability: The local government can resist pressure from countries like China to a certain extent, not easily banning these offshore gambling businesses. In other words, either the country has diplomatic autonomy and dares to refuse China's demands (as the Philippines did during Duterte's era by publicly refusing to ban POGO), or the official tacitly allows grey operations, superficially coping externally. High-level corruption or protection by power groups also enhances the industry's survival probability.
From the above situations, even if some countries can withstand pressure from China or promise not to operate in the Chinese market, they cannot withstand pressure from other countries, nor can they prevent rogue operators from targeting more sensitive markets like the USA. Once this happens, the country will face comprehensive global sanctions or pressure from the US crackdown.
POGO cluster umbrella countries are destined to become part of history, leaving POGO in a global guerrilla era.
Comments0
I am optimistic about Turkey.
Now there are almost no countries that simultaneously possess considerable national power, have poor relations with China, hold advantages in the Asia-Pacific region, and have good infrastructure.
East Timor wants to get involved but doesn't look promising; it's too small a country, other countries could take it down in minutes. Out of fear, it will cooperate in the pursuit.
Most of them lose due to poor stress resistance.
The previous balance of terror maintained by the warlords in Myanmar has now been disrupted. Previously, the warlords could easily escalate issues like gambling and fraud into domestic affairs, but now the government is also compliantly cooperating. It's tricky.
Myanmar was the last cluster, and now it's gone too.
Cambodia, this little brother who stabs in the back, is now obediently cooperating.
No chance
Big countries dare not do it; small countries cannot afford to do it.
Indeed, no country dares to do it now, as they all fear offending China and affecting their own economy.
"Success and failure are both due to Xiao He; actually, if Duterte hadn't been so close to China at that time, POGO wouldn't have died. Are you talking about old Duterte? Was his relationship with Xiao Ma really significant? During Aquino's era, online gambling had already begun."
Previously, the Philippines took advantage of the hostility between the two countries and the absence of extradition agreements as a premise to establish POGO, which essentially had the backing of the United States.
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