PHILIPPINE FINANCE CHIEF ASSERTS POGO BAN WON'T IMPACT ECONOMY

MANILA, July 23 (Bernama-Xinhua) -- Philippine Finance Secretary Ralph Recto stated on Tuesday that banning Philippine Offshore Gaming Operators (POGOs) would not significantly impact the economy, as the costs of maintaining POGOs far outweigh the benefits, reported Xinhua.

In his State of the Nation Address on Monday, Philippine President Ferdinand Romualdez Marcos announced the ban on all POGO operations in the country, directing the Philippine Amusement and Gaming Corp. to wind down and cease POGO activities by the end of the year.

Recto welcomed the ban as POGOs "come with significant reputational risks."

"We have seen the negative impacts and destruction (the POGOs) have caused to our country because of crimes. Banning them won't significantly affect the economy because the costs of keeping them outweigh the benefits," Recto said.

In a cost-benefit analysis, the Department of Finance estimates showed that the net cost of POGO operations reached around 99.52 billion pesos (US$1.7 billion) annually.

 According to the analysis, POGOs' estimated total economic benefits are only 166.49 billion pesos (roughly US$2.85 billion) per year, significantly lower than the estimated total economic costs of 265.74 billion pesos (US$4.55 billion) annually.

Recto said the estimated economic costs of POGOs include the undesired effects of reputational risks, which impact foreign direct investments. POGO-related crimes also negatively affect the country's attractiveness as a tourist destination.

Social costs entailed by POGOs are unquantifiable, said the finance chief, adding that POGO operations also affect communities by increasing fear and anxiety associated with illegal activities.  

--BERNAMA-XINHUA