Casino wars simmer in South East Asia
China issues statement warning Philippine illegal POGO recruiters and junkets
The Philippines government has promised to crack down on illegal recruiters for Philippine offshore gaming operations (POGOs), following China’s statement about online gambling in Manila that could be seen as a warning to junkets and online gaming operations about gambling outside of Macau.
The Chinese embassy in Manila issues a strong statement last Thursday 08 August, indicating that, “If the warning is not heeded by the offshore operators, then China will likely begin a broader crackdown, which would be negative for POGOs and Philippine casinos.”
According to analysts Bernstein, China will be taking a stronger stance in trying to curtail gambling overseas outside of Macau, which in the longer term may be beneficial for the territory, which is the only place in China where gambling is legal.
Following the Chinese Embassy statement, Presidential Spokesperson Salvador Panelo called on the Philippine government to “punish” POGO operators who have been illegally recruiting Chinese citizens: “Anything illegal, we will run after them. It can be illegal if they do not observe the protocols imposed by the government.”
The Chinese embassy has raised concerns over the welfare of its Chinese nationals working in the POGO industry, calling the work conditions of some Chinese nationals “modern slavery,” alleging that Chinese workers had their passports taken away or confiscated while others were subjected to “extortion, physical abuse and torture as well as other ill-treatment.”
The Chinese government also expressed “grave concern” over PAGCOR’s POGO hubs concept, saying that moving thousands of Chinese citizens to “self-contained hubs” might be a violation of their rights.
PAGCOR, however, said the plan was meant for the welfare and protection of the 138,000 Chinese nationals working in the POGO industry. Pagcor Chair and CEO Andrea Domingo said in a statement: “The hubs are, in fact, being established for the protection of the foreign workers. They are no longer exposed to crimes being committed against them on the streets, they are assured of good working conditions and decent living quarters and will be given their proper visas as there will also be other relevant government agencies setting up offices at the hubs.”
However, China’s concerns seem to go further than the POGO saga and showing Beijing’s unease over the number of gambling operations across Asia that are targeting the mainland, either through online streaming, or by luring its nationals overseas. The Chinese Embassy statement follows an article in state media, published in July, that targeted Macau’s largest junket operator, Suncity Group Holdings, “accusing it of illegal online gambling and proxy betting.”
According to local media reports, Macau’s Gaming Inspection and Coordination Bureau (DICJ) has also issued a directive to junkets preventing them from settling overseas transactions in Macau. That order came into force on August 1, and Bernstein has noted that Melco Resorts and Entertainment has curtailed proxy betting at its City of Dreams Manila as of July, while Suncity has denied China’s allegations.
