Crackdown could cost Chinese nationals visas

According to a Tuesday report from Philippine digital media firm Rappler, Beijing and Manila have initiated a crackdown on tens of thousands of Chinese citizens in the Philippines who work for Philippine Offshore Gaming Operators (POGOs), telling the foreign nationals that they stand to lose their work visas by mid-October. If the visa-holders do not cancel their visas voluntarily, Manila says they will cancel their visas for them. Depending on the source of estimates, the move could affect as many as 150,000-300,000 Chinese workers employed by POGOs.

an unusual meeting of the minds between Chinese and Philippine officials

The crackdown comes amidst an unusual meeting of the minds between Chinese and Philippine officials, who look with displeasure on gambling operations due to the suspected criminal acts that often come from them.

Pogos employees engaging in criminal behavior

Victor Gao, vice-president of the Beijing-based think tank Center for China and Globalization, said: “I think China is opposed to such online gambling, especially if operating outside China with a penetration among the Chinese population.”

Gao noted that the foreign nationals who are likely to lose their Philippine visas are probably providing capital, offering technical expertise, or tracking people down to collect gambling debts. “You’re talking about a huge dark side.”

Manila and China have both taken steps to “wind down” offshore gaming firms by the end of 2024. Manila put out a statement on their website to that effect, and China says they want the Philippines to cancel their gambling operations. China will work with Manila to accomplish this aim.

China, Philippines working together on crackdown

The Chinese Embassy in Manila said on its website in July: “The Chinese government is striking hard against Chinese citizens who travel overseas to gamble, including offshore gambling and other online gambling. The Philippine offshore gaming industry breeds vicious crimes and seriously harms the interests of the two peoples.”

allowed POGOs to conduct business because some of their operations represent legitimate businesses

Former Philippine president Rodrigo Duterte and current President Ferdinand Marcos Jr. allowed POGOs to conduct business because some of their operations represent legitimate businesses. As reported by the South China Morning Post, Eduardo Araral—an associate professor at the National University of Singapore’s public policy school—said that these legal businesses “create jobs, occupy otherwise vacant buildings and pay taxes. Some Chinese operators have combined their gaming services with above-ground hotels and resorts.”

According to the American think tank Center for Strategic and International Studies, POGOs grew to concerning proportions once Cambodia banned online gambling. Chinese nationals invested heavily in gambling operations in Cambodia. Those investments drew blind eyes until recently, once it became apparent that they were creating “trouble for the government.” Araral said: “They don’t pay taxes, they engage in human smuggling, and they have their own police.”