INQUIRER FILE PHOTO
MANILA – Department of Finance (DOF) Secretary Ralph Recto on Tuesday gave assurance that the agency would help Filipino Philippine Offshore Gaming Operators (Pogos) find new employment.
This, after President Ferdinand R. Marcos Jr., in his third State of the Nation Address Monday, ordered the Philippine Amusement and Gaming Corp. (Pagcor) to wind down and cease Pogo operations by the end of the year.
“We have until the end of the year to ensure that all displaced Filipino workers will have new jobs and I think that is more than enough time. The DOF will work closely with the Department of Labor and Employment (Dole) to ensure that the workers’ incomes will not be severely disrupted and that we provide them with proper reskilling and upskilling training for new employment,” Recto said in a statement.
READ: DOF chief welcomes Marcos’ total Pogo ban order
Recto said he earlier submitted a cost-benefit analysis that recommended the prohibition of Pogo operations due to reputational risks and social costs.
The DOF estimates showed that the net cost of Pogo operations amounts to P99.52 billion annually while the estimated total economic benefits reach P166.49 billion per year.
The economic benefits took into account government revenues, such as tax revenues from the Bureau of Internal Revenue (BlR) as well as gross gaming revenues from Pagcor.
Other estimated direct economic benefits include estimated income from office and residential space rentals, transportation, and the additional demand from the private consumption of employees and entities.
Recto however said that the estimated total economic costs amount to P265.74 billion annually.
The estimated economic costs include the undesired effects of reputational risks which have an impact on foreign direct investments.
READ: Marcos bans Pogo, cites ‘disorder’ it caused PH
According to DOF’s cost-benefit analysis, the Pogo-related crimes also bring negative impact in terms of the country’s attractiveness as a tourist destination.
Recto said Pogos also entail social costs, which include the loss of life as well as physical and psychological harm to victims of criminal activities.
Recto said he fully supports Marcos’ directive to ban Pogos.
“As I have recommended to the President, Pogos come with significant reputational risks and we have seen the negative impacts and destruction they have caused to our country because of crimes. Banning them won’t significantly affect the economy because the costs of keeping them far outweigh the benefits,” Recto said.