Philippines Senator Joel Villanueva Files Bill to Repeal POGO Tax Law Following President Marcos’ Ban

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In a significant legislative move, Philippines Senator Joel Villanueva has filed a bill aimed at repealing the law that taxes Philippine Offshore Gaming Operators (POGOs). This action follows President Ferdinand R. Marcos Jr.’s decisive announcement during his State of the Nation Address (SONA) last Monday, where he declared a comprehensive ban on all POGOs.

Philippines Senator Joel Villanueva

Senate Bill No. 2752: Key Provisions

Senate Bill (SB) No. 2752, as proposed by Senator Villanueva, seeks the permanent cancellation of all POGO licenses. The bill stipulates a 30-day window for POGO operators to cease their operations in the Philippines. Villanueva emphasized the necessity of this measure, stating, “In compliance with the directive of President Marcos, we must also make sure that there is no more trace of POGO in the Philippines.”

Enforcement and Compliance

A critical component of SB 2752 is the continued mandate for the Bureau of Internal Revenue (BIR) to collect any unpaid taxes from POGO operators despite the repeal. Non-compliance with this directive will result in severe penalties, including imprisonment for 12 to 20 years, a fine of PHP 100 million (approximately US$1.71 million), or both. Additionally, foreign offenders will face deportation after serving their sentences.

Repealing Republic Act No. 11590

If enacted, SB 2752 will repeal Republic Act No. 11590, also known as the Act Taxing POGO, which was signed into law in 2021. This act had previously established the tax framework for POGO operations within the country.

Senator Villanueva’s Stance on POGOs

Senator Villanueva has been a vocal critic of POGO operations in the Philippines even before the President’s ban. He has consistently advocated for the prohibition of all online gambling activities in the country. His stance was further reinforced following a significant illegal POGO raid in Bamban, Tarlac, which led to the arrest of the town’s then-mayor, Alice Guo.

The Future of POGOs in the Philippines

The proposed bill reflects a strong governmental stance against POGOs, aiming to eradicate their presence in the Philippines. If passed, SB 2752 will mark a decisive step towards the complete removal of POGO operations, aligning with President Marcos’ directive and reinforcing regulatory measures to ensure compliance and safeguard public interest.

Impact on the Gambling Industry

The implementation of SB 2752 is expected to have profound implications for the gambling industry in the Philippines. The permanent cessation of POGO operations will not only affect the operators but also the broader economic landscape associated with this sector. The government’s stringent measures underscore its commitment to addressing the challenges posed by POGOs and ensuring a regulated and controlled gambling environment.

Conclusion: The Filing

Senator Joel Villanueva’s filing of SB 2752 represents a significant legislative effort to align with President Marcos’ directive to ban POGOs. The bill’s provisions, including the cancellation of licenses, tax collection mandates, and stringent penalties, highlight the government’s comprehensive approach to eliminating POGO operations in the Philippines. As the bill progresses through the legislative process, its impact on the country’s gambling industry and regulatory framework will be closely monitored.

FAQs About Senate Bill No. 2752 and the Ban on POGOs in the Philippines

1. What is Senate Bill No. 2752?

Senate Bill (SB) No. 2752 is a proposed bill filed by Philippines Senator Joel Villanueva that aims to repeal the law taxing Philippine Offshore Gaming Operators (POGOs) and enforce a permanent ban on their operations in the country.

2. Why was Senate Bill No. 2752 introduced?

The bill was introduced following President Ferdinand R. Marcos Jr.’s announcement during his State of the Nation Address (SONA) declaring a comprehensive ban on all POGOs.

3. What are the key provisions of SB 2752?

Permanent cancellation of all POGO licenses.
A 30-day period for POGO operators to cease operations.
Continued collection of unpaid taxes by the Bureau of Internal Revenue (BIR).
Severe penalties for non-compliance, including 12-20 years imprisonment and fines of PHP 100 million (approximately US$1.71 million).
Deportation for foreign offenders after serving their sentences.

4. What happens to unpaid taxes owed by POGOs?

The Bureau of Internal Revenue (BIR) will continue to collect any unpaid taxes from POGO operators even after the repeal of the tax law.

5. What penalties are imposed for non-compliance with the bill?

Non-compliance will result in 12-20 years of imprisonment, a fine of PHP 100 million (US$1.71 million), or both. Foreign offenders will also be deported after serving their sentences.

6. What law will SB 2752 repeal if passed?

SB 2752 will repeal Republic Act No. 11590, also known as the Act Taxing POGO, which was signed into law in 2021.

7. What has been Senator Villanueva’s stance on POGOs?

Senator Villanueva has been a consistent critic of POGO operations in the Philippines and has previously pushed for banning all online gambling activities in the country.

8. What was the major incident that reinforced Senator Villanueva’s opposition to POGOs?

Senator Villanueva’s opposition was reinforced by a significant illegal POGO raid in Bamban, Tarlac, which resulted in the arrest of the town’s then-mayor, Alice Guo.

9. What is the timeline for POGO operators to cease operations under SB 2752?

POGO operators are given a 30-day window to cease their operations following the enactment of SB 2752.

10. How will the ban on POGOs impact the gambling industry in the Philippines?

The ban will lead to the permanent cessation of POGO operations, affecting operators and the broader economic landscape associated with this sector. The government aims to enforce a regulated and controlled gambling environment through stringent measures.

11. What are the broader goals of SB 2752?

The bill aims to eradicate the presence of POGOs in the Philippines, ensure compliance with the President’s directive, and safeguard public interest by maintaining stringent regulatory measures.

12. How will the government enforce the new regulations if SB 2752 is passed?

The Bureau of Internal Revenue (BIR) and other relevant authorities will enforce the regulations by ensuring that all POGO operations cease, unpaid taxes are collected, and non-compliance penalties are imposed.

13. What are the potential benefits of passing SB 2752?

The benefits include eliminating illegal and potentially harmful POGO operations, ensuring compliance with tax laws, safeguarding public interest, and promoting a regulated gambling environment in the Philippines.