No Pogos in Cagayan economic zone – Ceza chief

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MANILA, Philippines — There are no Philippine offshore gaming operators (Pogos) in Cagayan Special Economic Zone and Freeport (CSEZFP), Cagayan Economic Zone Authority (Ceza) Administrator Katrina Ponce Enrile said on Wednesday.

During the House of Representatives’ hearing on illegal activities linked to Pogos, Enrile explained that there are internet gaming (iGaming) operations in CSEZFP, but it differs from Pogos.

“To this end, I want to categorically state that there are no Pogos in the Cagayan Special Economic Zone and Freeport. There never was, and there never will be. Pogos are the exclusive creation of the past administration of Pagcor (Philippine Amusement and Gaming Corporation). Ceza has the authority to conduct offshore iGaming operations since it can register enterprises organized or domiciled in the Philippines or any foreign country,” she said.

“We believe congressional hearings are in aid of legislation; hence, we need to better understand the distinctions between Ceza’s iGaming licensees and Interactive Gaming Support Service Providers, and Pagcor’s Pogos,” she added.

According to Enrile, internet gaming in CSEZFP started long before Pogos were created. However, the Pogo was a concept copied from Ceza’s iGaming operations.

“When the interactive gaming industry in [CSEZFP] started in 2003, it was very peaceful and orderly. Everybody knew everybody, and we were actually taken as a gaming jurisdiction very seriously. Ceza established itself as the first interactive gaming jurisdiction in Asia and stood at the forefront of regulatory innovation,” she said.

“In 2017, former President [Rodrigo] Duterte issued Executive Order (EO) No. 13 mandating all gaming and gaming-related activities to operate inside the territorial jurisdiction of the authority that issued the license…In the same year, the Pagcor officially institutionalized the term Pogo,” she added.

However, Enrile said the Pagcor “dictated” rules on how Pogos were supposed to operate, eventually differing from Ceza’s iGaming system.

“Initially, Pagcor Chairman Andrea Domingo was supposed to give Pogo licenses to just 25 operators, but she eventually expanded it. Obviously, they were already dictating the rules on how offshore gaming was going to be operated. With all the iterations and mutations from the original concept, it actually transformed into something else that was not any more reflective of what was being done within [the CSEZFP],” she explained.

“The idea was stolen from us. Its form changed and eventually turned into a hotbed for crime, but it appears they cannot control it. Now, we are being dragged into this mess and blamed for things that we did not do. Please do not do that,” she said in Filipino.

The Senate and the House have been probing Pogos since earlier this year after authorities raided Pogo hubs in Bamban, Tarlac and in Porac, Pampanga, revealing human trafficking, sexual abuses, torture, murder, and even possible money laundering.

Eventually, President Ferdinand Marcos Jr. declared that all Pogos are banned, and instructed Pagcor to wind up Pogo operations by the end of 2024.

READ: Marcos: ‘All Pogos are banned!’

The Ceza was dragged into the discussions on Pogos after the Presidential Anti-Organized Crime Commission (PAOCC) said last June 13 that some gaming hubs are operating near the Enhanced Defense Cooperation Agreement (Edca) sites.

The Edca is an agreement between the Philippines and the United States.

There are currently nine Edca sites, with two located in Cagayan. The Edca site in the Naval Base in Santa Ana, Cagayan, is within the CSEZFP.

READ: PAOCC confirms Pogos operating near Edca sites

Pagcor eventually clarified that there are no Pogo hubs near Edca sites.

READ: Pagcor says no licensed Pogo hubs next to Edca sites

Enrile confirmed that only one of the Edca sites is within the CSEZFP, noting that the military has no concerns placing the base near iGaming operations because it is “safe and secured.”

“Lastly, as to the issue of the presence of 10 offshore operations/gambling areas near Edca sites in Cagayan, may we clarify that there is only one Edca site within the Zone. The other Edca site in the province of Cagayan is located in Lal-lo,” she said.

“The service providers inside Ceza have been in the Zone before the Edca was signed and way before the determination of Edca sites. Hence, it would be safe to assume that the military knows of the presence of gaming service providers, and despite this knowledge, they still chose an area inside Ceza to be one of their Edca sites,” she added.