Philippine Senator Raffy Tulfo criticized Cebu BPO companies for forcing employees to work during an earthquake at a labor committee hearing, and announced the elimination of illegal POGO (Philippine Offshore Gaming Operators) activities in the BPO industry. The President's Anti-Organized Crime Committee (PAOCC) confirmed that 47 companies disguised as BPOs, which are illegal POGOs, are collectively fleeing to islands, Cambodia, and remote network operations. Investigations found that since the POGO ban in 2024, illegal gambling companies have continued to operate in the form of "fake BPOs," involving passport retention, training scam tactics, and cross-border money laundering. Regulatory loopholes, cross-regional enforcement difficulties, and local economic dependencies pose challenges to crackdown efforts, with illegal POGOs evolving towards miniaturization, cross-border operations, and encryption.
Hearing and Investigation Launch
Philippine Senator Raffy Tulfo strongly criticized the behavior of Cebu BPO companies forcing employees to work during the earthquake at the labor committee hearing. He announced a thorough cleanup of illegal POGO activities in the BPO industry, stating "prosecution is just the beginning."
The President's Anti-Organized Crime Committee (PAOCC) subsequently confirmed that 47 companies disguised as BPOs, which are illegal POGOs, are "collectively fleeing," with escape routes including domestic islands, Cambodia, and remote network operation models.
Regulatory Violations During the Earthquake
When an earthquake occurred in Cebu on September 30, several outsourcing companies violated safety regulations, locking doors and forcing employees to continue working. Security used iron chains to block fire exits, and HR threatened employees over the loudspeaker that "leaving without permission will result in a deduction of the entire month's bonus."
It was reported that a pregnant woman, seven months into her pregnancy, was forcibly dragged back to her seat, and two hours after the earthquake, the company still ordered employees to return to work, with 12 employees who took shelter being penalized, and three having their salaries deducted.
False BPO Operating Models
Since the full ban on POGOs in 2024 in the Philippines, a large number of illegal gambling companies have continued to operate by masquerading as "BPO" businesses. Cebu, due to relatively lax regulation, has become a new hotbed for such illegal activities.
The National Bureau of Investigation (NBI) captured 47 "fake outsourcing" companies, finding that they mainly adopted three operating models: resort BPOs (underground hidden gambling customer service), e-commerce shells (disguised data companies actually for scam training), and cross-border customer service (for laundering money for overseas casinos).
Illegal POGO Escape Routes
PAOCC monitored three main escape routes for illegal POGO companies: domestic shifts to Visayas, Mindanao, and other island regions, disguised as family-style lodgings; cross-border migration to areas like Phnom Penh, Cambodia, renting office buildings; and shifting to fully remote operations, using encrypted communication and virtual currencies for salary payments.
Investigators stated that these companies "are no longer in the company, but in the cloud," increasing the difficulty of tracking and crackdown.
Regulatory System Loopholes
The Philippines faces multiple regulatory loopholes in combating illegal POGOs: low efficiency in cross-regional law enforcement, PAGCOR personnel not authorized to investigate across provinces; weak international collaboration mechanisms, with neighboring country officials possibly receiving "protection fees"; deep local economic dependence, with fake BPO companies driving local dining and rental consumption.
A private official admitted: "If we really clean up, half of the business district would collapse first," reflecting the economic realities that law enforcement faces.
Employee Situations and Rights Violations
Employees of fake BPOs were forced to sign "voluntary transfer" agreements and were threatened with "don't think about returning to your country if you leak information." Some gangs destroyed senior data before fleeing, only retaining employee lists, making 12 Chinese employees scapegoats.
Some employees were even imprisoned for two months, unable to call for help. After POGO disbanded, these employees also lost the exploited job opportunities.
Data Impact and Trend Analysis
Investigation data shows that about 30% of newly registered BPO companies after the POGO ban are suspected of being shell companies. Nearly 9,000 foreign gambling personnel are still stranded in the Philippines, with forty percent having moved to remote areas.
Cases related to virtual currency laundering associated with fake BPOs surged by 42%, indicating that illegal fund flows are moving towards more covert channels.
Future Development Trends
Illegal POGO activities are showing three major development trends: miniaturization (split into family-style small teams of more than ten people), cross-border operations (domestic customer acquisition, overseas money laundering), and encryption (using virtual currencies and smart contracts for money laundering).
These changes pose greater challenges to traditional law enforcement methods, requiring more advanced technological means and international cooperation to address.
Law Enforcement Challenges and Policy Dilemmas
The Philippines faces a triple dilemma of strict laws but weak enforcement, economic dependence on gray industries, and insufficient cross-national strike capabilities. These factors together constitute the "deadlock" of anti-POGO actions.
The "cleanup storm" stirred up by Senator Tulfo may force illegal activities to become more dispersed and hidden, thereby increasing the difficulty of thorough eradication.
Long-term Impact and Industry Outlook
The evolving trends of illegal POGOs mean that future law enforcement actions may need to penetrate into guesthouses on Bohol Island, technology parks in Cambodia, or even employees' bedrooms. This decentralized, covert operating model will demand higher regulatory standards.
In the long term, the Philippines needs to strengthen domestic law enforcement capacity building, deepen international cooperation, and address local economic dependence on gray industries to effectively meet this challenge.
