Philippine President Marcos signed the "Anti-Offshore Gambling Act" in October 2025, completely banning offshore gambling operations, with violators facing up to 12 years in prison and a fine of 50 million pesos. This move caused the Philippine peso to fall to 58.85 against the US dollar, the stock market to drop below 5900 points, the real estate market vacancy rate to soar, and a sharp reduction in revenue in the catering and other service industries. The act ended the POGO industry that had been ongoing for nearly a decade in the Philippines. Although aimed at combating associated crimes, it also caused economic pain, highlighting the country's dependence on the gray industry and the challenges of transformation.
Act Content and Economic Impact
The "2025 Anti-Offshore Gambling Act" officially took effect, completely banning offshore gambling operations, with violators facing up to 12 years in prison and a fine of 50 million pesos. After the enactment of the act, the Philippine peso fell to 58.85 against the US dollar, reaching a several-month low, and the PSEi stock index fell below 5900 points. The industry chain supported by about 60 licensed POGOs and more than 200 service providers before the pandemic was directly impacted, and the continuous withdrawal of foreign capital exacerbated financial market fluctuations.
Industry Chain Impact and Social Reaction
The POGO ban led to a significant increase in the vacancy rate of office buildings in areas such as Manila, Pasay, and BGC, with landlords facing a sharp reduction in rental income. The catering industry was significantly affected, with some Chinese restaurants seeing daily sales drop from 500 servings to less than 100. Although the government emphasized that the ban was to combat fraud, money laundering, human trafficking, and other crimes, the public questioned its actual effects, pointing out that issues such as grassroots corruption and prison overcrowding remained unresolved, and considered the policy to be more of a political symbol.
Policy Background and Regional Comparison
While the Philippines introduced the ban, regions such as the UAE were advancing the legalization of gambling, with the Wynn Group obtaining the first casino license in the United States. Analysts believe that the Philippines' excessive dependence on gray industries such as POGOs exposed the vulnerability of its economic structure. In the short term, it faces challenges such as rising unemployment rates and increased inflationary pressures, and in the medium to long term, it needs to deal with the withdrawal of foreign capital and the hollowing out of industries, highlighting the inevitability and pain of transitioning from a gray economy to compliance.
