Ceza insists it’s exempt from Pogo ban
The Cagayan Economic Zone Authority (Ceza) on Thursday insisted that it should be exempt from the total ban on Philippine offshore gaming operators (Pogos) in the country, clarifying that it does not host such businesses.
Ceza administrator Katrina Ponce Enrile reiterated the agency’s stance that its licensees, including iGaming and interactive gaming support service providers, operate under a distinct framework and are not affiliated with Pogos regulated by the Philippine Amusement and Gaming Corp. (Pagcor).
When asked whether Ceza falls under the scope of President Marcos’ Executive Order No. 74, which implements the ban, Justice Secretary Jesus Crispin Remulla told the Inquirer that the Department of Justice would “examine the facts” surrounding the matter.
Solicitor General Menardo Guevarra, however, maintained that the ban on all Pogo operations, whether Pagcor-licensed or not, “emanates from a direct order of the President as chief executive who exercises control over all executive agencies.”
“As the Ceza falls under the executive department, it is duty-bound to comply with the President’s order,” Guevarra said in a Viber message to the Inquirer.
Clean record
Enrile explained that Ceza’s iGaming licensees are foreign companies operating outside the Philippines and are prohibited from soliciting or accepting bets within the country.
She acknowledged that the Pogo ban had impacted Ceza’s iGaming sector but emphasized that its operations are distinct and should not be subject to the prohibition.
During a hearing by the House of Representatives committees on public order and safety and on games and amusements in July last year, Enrile expressed support for the government’s efforts to eliminate the criminal activities linked to Pogos.
“To this end, I want to categorically state that there are no Pogos in the Cagayan Special Economic Zone and Freeport. There never was, and there never will be. Pogos are the exclusive creation of the past administration of Pagcor,” she said.
Enrile underscored Ceza’s clean record, noting that no crimes such as kidnapping, human trafficking, torture, scams or murder have been associated with its licensees.
“For more than 20 years that Ceza has been regulating and licensing iGaming and interactive gaming support service providers, it has never encountered such issues,” she added.
Malacañang memo
Enrile also emphasized that Ceza’s operations differ significantly from Pogos, particularly in terms of workforce management.
She explained that Ceza strictly regulates the issuance of working visas and controls physical entry into the Cagayan Special Economic Zone and Freeport, ensuring a balanced ratio of Filipino to expatriate employees.
“All interactive gaming support service providers are encouraged to prioritize local talent,” she said, adding that the employment ratio averages 70-percent Filipino to 30-percent expatriate.
“Unlike Pogos, our interactive gaming support service providers are merely service providers and do not accept bets. Unlike Pogos, we do not allow sublicensing. Unlike Pogos, our iGaming and interactive gaming support service providers operate under licensing based on our charter and implementing rules and regulations,” Enrile said.
Law authored by father
Ceza was established in 1995 under Republic Act No. 7922, a law authored by Enrile’s father, former senator and now presidential legal counsel Juan Ponce Enrile.
Covering 54,000 hectares in Sta. Ana, Cagayan, the ecozone is empowered to license various gaming activities independent of Pagcor.
Following the issuance of EO 74 on Nov. 5, 2024, Malacañang instructed Ceza to adhere to the ban on Pogos and internet gaming licensees through a memorandum signed by Executive Secretary Lucas Bersamin.
“Consistent with Republic Act No. 7922, also known as the ‘Cagayan Special Economic Zone Act of 1995,’ you are hereby instructed to adhere to the directive issued by the President during his State of the Nation Address on 22 July 2024 regarding the immediate ban of Philippine offshore gaming operators or internet gaming licensees in the Philippines, subject to applicable laws, rules and regulations,” the memorandum read.
Final word to Senate
During the Senate’s final hearing on Pogos last November, Ceza reiterated that its licensees should not be included in the ban as their operations occur outside the country.
“We believe that the conduct of interactive gaming licensees of Ceza outside the country is not subject to the provisions of the Executive Order,” Ceza Deputy Administrator Marichelle De Guzman told lawmakers on Nov. 26, 2024.
Two days later, the office of Sen. Risa Hontiveros released a letter from Bersamin indicating that Malacañang had ordered Ceza to collaborate with the Anti-Money Laundering Council (AMLC) to draft guidelines for implementing the ban on offshore gaming hubs.
“Please be informed that this Office has directed the Ceza to coordinate with the AMLC relative to the crafting of the implementing guidelines on the ban of offshore interactive gaming operations and all other offshore gaming operations and services within the Cagayan Special Economic Zone and Freeport,” Bersamin wrote. —WITH A REPORT FROM MELVIN GASCON
