Authorities in the Philippines are seeking the arrest of a suspended mayor from a small town, who is connected to criminal activities within the offshore gaming sector. A number of legislators argue that the sector plays a role in a broader plan by Beijing to undermine national security.
Gambling revenue in the Philippines for the third quarter has been reported.
Certain lawmakers in the Philippines are alleging that China is making inroads into the nation’s offshore gaming sector. There are allegations that China is employing a deceptive strategy to compromise national security.

Philippine Offshore Gaming Operations (POGOs), predominantly operated by Chinese entities, have been associated with a range of serious criminal activities, such as online fraud, abduction, torture, and even homicide.

In the previous autumn, POGOs underwent a rebranding process and are now known as Internet Gaming Licensees (IGLs). The recent name change aims to help the regulator differentiate between legitimate and illegitimate operators. However, there continue to be demands for a prohibition on the sector. The pressure mounted starting in March, following the involvement of a small-town mayor in crimes associated with POGO.

During a raid on 13 March at a POGO complex in Bamban, Tarlac, law enforcement officials rescued 868 individuals suspected to be victims of human trafficking. A total of nine villas, 46 vehicles, €89,025 in cash, as well as items such as motorcycles and heavy equipment were also confiscated. The facility operated by Zun Yuan Technology Inc was situated on property that was partially owned by Bamban's mayor, Alice Guo.

An investigation revealed that a substantial amount of money, amounting to billions of pesos, was transferred into 36 bank accounts owned by Guo. Senator Win Gatchalian, known for his criticism of POGOs, stated that a significant amount of the funds originated from China and was reportedly utilised to support the offshore operation. Guo's accounts are now frozen.

An independent inquiry has uncovered that the Filipina mayor and an individual holding a Chinese passport, identified as Guo Hua Ping, could potentially be the same person. The fingerprints are identical.

“No one knows her,” remarked President Ferdinand Marcos Jr regarding the mayor, who was elected in 2022 and subsequently suspended following the raid. “We are curious about her origins.” We are looking into this matter in collaboration with the immigration bureau due to the enquiries surrounding her citizenship.

New developments emerge
Last week, after Guo did not appear for a second hearing in the criminal case, the Philippine senate issued a call for her arrest. However, Guo’s attorney asserts that she was unable to attend due to overwhelming stress, having experienced significant cyber-bullying and humiliation.

Amid escalating tensions, a significant situation is unfolding between the Philippines and China regarding territorial claims in the South China Sea. Under the leadership of former Philippine president Rodrigo Duterte, the ties between the nations strengthened significantly. Subsequently, he faced allegations of forming a close relationship with Chinese president Xi Jinping. But Marcos’ pro-US stance has chilled things considerably.

Senate President Pro Tempore Jinggoy Estrada has expressed his concerns regarding the operations of POGO establishments in proximity to military and police facilities located in Quezon City, Pasay City, Taguig City, and Manila. “The existence of approximately 250 unlicensed operators should urge our relevant authorities to take decisive action against these unlawful entities,” he stated.

General Romeo Brawner Jr, the chief of staff of the armed forces, expressed concerns that the “strategic locations of POGOs” in proximity to the capital establish “a perimeter for espionage.”

Security expert Chester Cabalza has described POGOs as a potential threat, likening them to a Trojan horse capable of launching an unexpected assault in the Philippines.

There is a strong call for an urgent prohibition of POGOs.
Alejandro Tengco, the leader of the Philippine Amusement and Gaming Corporation (Pagcor), admitted that criminals might have perceived the Philippine regulator as somewhat lenient previously. They managed to enter without Pagcor being aware that they were engaged in illicit activities rather than legitimate gaming operations.

The regulator is currently collaborating with authorities to pinpoint and eliminate those engaging in misconduct within the sector. In June, Pagcor stood by legitimate POGOs following a raid on illegal sites that uncovered criminal activities.

Gatchalian has expressed his dissatisfaction and called for a “immediate ban” on the offshore operations. “Alongside the alarming increase in serious offences linked to POGOs,” he stated, “the sector has generated significant national security issues that require immediate attention and decisive political action.”

Defense Secretary Gilberto Teodoro agrees. “These coordinated illegal activities undermine our economic stability, impact our national ratings, and erode the integrity of our society,” he stated.

He believes that Beijing may be backing unlawful POGOs to disrupt "our political, economic, social, and peace and order fabric." One of the most impactful strategies for undermining an adversary is to instigate discord within their own borders.