On Monday, July 22, Philippine President Ferdinand Marcos Jr ordered an immediate ban on the widespread online gambling operations mainly run by Chinese nationals in the Philippines. He accused these businesses of being involved in criminal activities such as financial fraud, human trafficking, torture, kidnapping, and murder.
In his State of the Nation Address at the Philippine Congress on Monday, Marcos announced the decision, stating, “Starting today, all Philippine offshore gaming operators (POGO) will be banned.” He directed the shutdown of these operations by the end of the year and asked labor officials to assist Filipinos who would lose their jobs as a result.
According to reports by the Associated Press, there are over 400 online gambling establishments operated by Chinese individuals in the Philippines, employing tens of thousands of Chinese and Southeast Asian nationals.
Marcos remarked during his speech, “These gambling establishments disguise themselves as legitimate entities, but their operations have ventured into illegal activities far removed from gambling, such as financial fraud, money laundering, prostitution, human trafficking, kidnapping, brutal torture, and even murder. The serious abuse and disrespect they show towards our legal system must stop.”
Marcos also stated that the Philippines will intensify efforts to enhance defense capabilities by establishing security alliances with friendly countries to address threats to Philippine territorial interests in the South China Sea. He emphasized that the Philippines will only resolve disputes through diplomatic means.
The relationship between the Philippines and the Chinese authorities is complex, involving significant trade exchanges and cooperation in combating crime. During former President Rodrigo Duterte’s term, close ties were established with China, leading to unprecedented growth of the online gambling industry operated by Chinese nationals in the Philippines, masking criminal activities such as telecom fraud and human trafficking.
Under Duterte’s administration, no concessions were made to China, but an agreement to maintain the “status quo” was reached, whereby neither the Philippines nor China would take actions that would disrupt the South China Sea.
However, with the current President Marcos taking office, the Philippines has asserted its sovereignty claims in the South China Sea and adopted a tough stance against China. Conflicts between the two sides in the South China Sea have escalated since last year.
Recently, a mayor in a small city in the Philippines was accused of identity forgery and suspected of being a Chinese (Chinese Communist Party) spy, providing facilitation for criminal activities at the casinos, sparking heated discussions online.
In March of this year, the Philippine National Bureau of Investigation (NBI) raided a gambling casino in Bamban City, Tarlac Province, uncovering evidence of criminal activities such as telecom fraud in an 80,000-square-meter online gambling complex. The establishment had nearly 700 employees, including 202 Chinese citizens and 73 individuals from other countries.
The raid unexpectedly uncovered bills and vehicles registered under Mayor Alice Guo, who was elected in 2022. Subsequent investigations revealed that Mayor Guo owned nearly half of the land in the complex.
The NBI also found that this Chinese mayor shares identical fingerprints with a Chinese individual named Guo Hua Ping. In 2003, Guo Hua Ping, who was in her teens at the time, arrived in the Philippines with a Chinese passport.
Guo is also under investigation in another corruption case, leading to her suspension from office and freezing of her assets.
The Chinese mayor denies any wrongdoing but risks disqualification from office if proven to be a Chinese citizen.
According to a report by the BBC last week, Philippine officials stated that Guo, after being suspected of a Chinese Communist Party spy, had gone into hiding. Police have been unable to execute an arrest warrant for Guo and have not found her at any known residences.
Philippine senators have indicated that the flourishing online gambling industry is mainly due to corruption within regulatory agencies and the acceptance of bribes by local officials.