What will be the policy evolution of the gambling industry if Philippine President Ferdinand Marcos Jr. is re-elected?
This is a focal topic of widespread concern among the Chinese community in the Philippines. In recent years, the gambling industry has rapidly expanded in the Philippines, not only reshaping the local economic structure but also profoundly affecting the daily life and sense of security of the Chinese community.
In fact, the rise of the gambling industry in the Philippines is inseparable from the Duterte administration's empowerment and policy inclination. At the beginning of his term in 2016, Duterte vowed to combat oligarchs and regulate online gambling, with the first target being Roberto Ongpin, a prominent Filipino tycoon.
The Turbulence in Gambling Began with "Oligarch Regulation"
Roberto Ongpin, a former Minister of Trade during the Marcos administration, had established a business empire in various sectors including real estate, gambling, and telecommunications. His company, PhilWeb, had long monopolized the online gambling licenses in the Philippines. In August 2016, Duterte publicly named Ongpin as a "representative of oligarchs" and pushed to terminate PhilWeb's gambling license, causing the company's stock prices to plummet. To save the company, Ongpin had to resign as chairman and suspend the company's gambling operations.
After PhilWeb was ousted, the Philippine Amusement and Gaming Corporation (PAGCOR) regained control of issuing online gambling licenses, and a large number of new gambling companies entered the market, especially the offshore gambling (POGO) industry, which expanded rapidly. Within a few years, a large number of Chinese nationals were recruited to work in the Philippines in gambling-related jobs, benefiting the local catering, real estate, construction, and entertainment industries, and many Chinese merchants also took the opportunity to develop.
From Economic Prosperity to Social Turmoil
However, the expansion of the gambling industry also brought severe security and social issues. From 2017 to 2019, kidnapping cases involving Chinese citizens significantly increased, most of which were related to gambling disputes. According to the Makati police, in 2019 alone, there were at least 21 kidnapping incidents involving Chinese due to gambling debts. The police even planned to arrange anti-kidnapping agents to learn Chinese at Chinese schools to cope with the surge in China-related cases.
During this period, the Chinese government repeatedly pressured the Philippine side to regulate online gambling and control illegal capital outflows. However, Duterte did not cooperate and even joked with PAGCOR executives to encourage them to "open more casinos." Although his promises to combat drug crimes and street violence were loud, the gambling-induced kidnappings, fraud, and illegal immigration issues caused unprecedented panic among the Chinese community in the Philippines.
The Pandemic Quiets Down and the Gambling Industry Recedes
After the outbreak of COVID-19 in 2020, the Philippines closed its borders, and many gambling companies were forced to exit the market due to unstable tax systems and labor shortages. The gambling industry subsequently cooled down, and the economic recovery period also welcomed a window for policy adjustments.
Until the borders were reopened, some gambling operators began to return to the Philippines, but the overall atmosphere of the industry was no longer the same as before. The Chinese community remains cautious about the resurgence of the gambling industry, as the past chaos and trauma are still fresh in their minds.
Where Will Marcos Jr.'s Stance Go?
It is certain that Marcos Jr.'s policy focus will still concentrate on traditional sectors such as agriculture, infrastructure, and new energy. Whether the gambling industry will be re-included in the development priority list remains to be observed.
However, for many Chinese in the Philippines, the resurgence of the gambling industry is not just a policy-level discussion but a major issue related to survival and safety. After all, if similar chaos is not curbed, tragedies like "compatriots kidnapping compatriots" may continue to recur.
