MANILA, Philippines – More than three months after his verbal order, President Ferdinand Marcos Jr. finally released Executive Order (EO) No. 74, the document that lays down the fine print on who is supposed to be included in the all-out ban on Philippine offshore gaming operators (POGOs) that he announced in his State of the Nation Address (SONA) in late July.
The EO, signed on November 5, is much awaited by businesses and government agencies alike, to settle questions about Marcos POGO announcement in his July 22 SONA – specifically if it covers special class business process outsourcing (BPOs) and the licenses issued by the Cagayan Economic Zone Authority (CEZA.
But the fine print is still wanting, particularly with casinos and the Cagayan Economic Zone Authority (CEZA) founded by Juan Ponce Enrile, who is chief presidential legal counsel to Marcos in Malacañang.
“While I laud the aims of the Executive Order, at nagpapasalamat din para sa reintegration program para sa mga displaced workers, may mga bagay pa rin sa EO na hindi malinaw (and thankful for the reintegration for displaced workers, there are still things in the EO that are unclear),” said Senator Risa Hontiveros on Saturday, November 9.
POGOs, IGLs included. What about BPOs and casinos?
First, the EO makes it clear that the ban covers both illegal and licensed POGOs, as well as those under the new name, internet gaming license or IGL. The illegal ones are self-explanatory, while the legal ones fall under Section 2(D) which says they must wind down before the end of the year.
d. Cessation of operations. All POGOs/IGLs and other offshore gaming operations and other offshore gaming-related/auxiliary/ancillary services with issued licenses, permits or authorizations shall completely cease operations, including the winding up of their affairs, on 31 December 2024 or earlier.
Executive Order no. 74
What makes this ban complicated is that there are many BPOs who provide services to POGO or IGL licensees, but are not POGO or IGL licensees themselves. A source at the Philippine Amusement and Gaming Corporation (Pagcor) had earlier told Rappler that they were awaiting the EO to have some clarity on the special class BPOs.
While “special class BPOs” is not explicitly found in the language of the EO, the order says that the ban covers “other offshore gaming licensees.” The EO defines “other offshore gaming licensees” as including “gaming agents and accredited service providers providing ancillary services to offshore gaming licensees.”
Hontiveros, however, raised one more concern. Section 1(b) of the EO says offshore gaming operations “exclude online games of chance conducted in Pagcor-operated casinos, licensed casinos, or integrated resorts with junket agreements.”
”Ibig sabihin ba nito, puwede magpatakbo ng POGO sa mga casino gaya ng City of Dreams? Gaya ng Fontana? O kahit sa mga resorts na may mga casino sa loob?” said Hontiveros.
(Does this mean you can run POGOs inside casinos like City of Dreams? Like Fontana? Or even in resorts that have casinos?)
Is CEZA included?
The other big question is whether the ban covers licensees under the Cagayan Economic Zone Authority (CEZA), which has its own offshore gaming regulatory framework by virtue its charter, Republic Act No. 7922 authored by former senator Enrile. Enrile’s daughter, Katrina Ponce Enrile, is the chief executive officer of CEZA.
CEZA’s offshore gaming is called i-Gaming. Katrina Enrile told the House of Representatives on July 31 that “CEZA enjoys independence from Pagcor and other agencies of the national government in terms of licensing and regulation of gaming within its covered jurisdiction.”
Even Hontiveros said that “hindi pa din malinaw sa akin kung sakop ng ban ang CEZA at iba pang economic zones (it’s still unclear to me if the ban covers CEZA and other economic zones).”
CEZA is not explicitly included in EO 74. In fact, the EO defines “other offshore gaming licenses” as those “authorized under their respective Charters and subject to the supervision and/or jurisdiction of Pagcor.” EO 74 even explicitly mentions AFAB (Authority of the Freeport Area of Bataan) as being under Pagcor supervision, while offshore gaming licenses inside the Aurora Pacific Economic Zone and Freeport Authority (APECO) has been transferred to Pagcor.
“Note that CEZA is not under supervision of Pagcor given its charter. That’s why it was excluded in the EO,” Malacañang’s Communications Secretary Cesar Chavez told Rappler.
So, are CEZA licensees covered by the ban?
Pagcor and the Presidential Anti-Organized Crime Commission (PAOCC) deferred to Malacañang. Rappler has asked Justice Secretary Jesus Crispin “Boying” Remulla and Interior Secretary Juanito Victor “Jonvic” Remulla but both have not responded as of writing time. We will update this story once they do.
Chavez told Rappler: “The Executive Secretary also released a Memo today directing CEZA to comply with the directive on the ban on POGOs.”
The memorandum he was referring to was issued by Executive Secretary Lucas Bersamin, telling CEZA CEO Katrina Ponce Enrile on November 5 to “adhere to the directive” of the President regarding the ban.
The language of the memorandum, however, still leaves room for interpretation.
Consistent with Republic Act No. 7922, also known as the ‘Cagayan Special Economic Zone Act of 1995,’ you are hereby instructed to adhere to the directive issued by the President during his State of the Nation Address on 22 July 2024 regarding the immediate ban of Philippine Offshore Gaming Operators or Internet Gaming Licensees in the Philippines, subject to applicable laws, rules and regulations.
– Memorandum from the Executive Secretary to CEZA, November 5, 2024
If the memorandum were to be consistent with the CEZA charter, the law under Section 6(c) authorizes CEZA to “approve, accept, accredit and allow any local or foreign business, enterprise or investment in the Zone subject only to such rules and regulations as CEZA may promulgate from time to time in conformity with the provisions of this Act and the limitations provided in the Constitution.”
The Bureau of Immigration has been supervising the downgrading of visas for those who were given working visas directly related to POGOs and IGLs. How would that cover CEZA if, under Section 4(e) of their charter, they have the “responsibility and authority to grant such permanent resident status” to special investors and that those special investors and dependents “shall have the freedom of ingress and egress to and from the Zone without need of any special authorization from the Bureau of Immigration.”
In fact, the controversial Chinese tycoon She Zhijiang who is in jail in Thailand for his illegal gambling syndicate — and who is a self-proclaimed Chinese spy — has been able to enter the country using a visa from CEZA, according to his travel records submitted to Senator Risa Hontiveros.
Rappler asked Chavez for a more categorical statement: Should CEZA licensees also wind down and cease operations? Chavez simply repeated that: “In the memo of ES Bersamin, CEZA is instructed to adhere to the directive issued by the President during his SONA on July 22, 2024 regarding the ban on POGO.”
Rappler asked the government’s lawyer, Solicitor General Menardo Guevarra. He said, “All POGOs, whether under the jurisdiction of the Pagcor or not, shall cease operations by 31 December 2024.”
Asked also for a more categorical statement with regards to CEZA, Guevarra said, “I will not preempt the Palace.”
“What this only underscores is that we need a clear law to move forward with a meaningful, clear, unequivocal, and comprehensive ban,” said Hontiveros, adding that the anti-POGO bill is pending in the Senate.
See copies of EO 74 and the CEZA memorandum here:
Executive Order No. 74 re POGO ban by Lian Buan on Scribd
Memorandum to CEZA re POGO ban by Lian Buan on Scribd
– Rappler.com