Philippines c. bank chief would rather online gambling firms leave

By Fathin Ungku and John Geddie
SINGAPORE, Oct 1 (Reuters) - Banning online gambling will
have little impact on the Philippines economy, its central bank
chief said on Tuesday, after China urged Manila to outlaw the
cross-border activities it says pose money laundering risks.
Philippines Central Bank Governor Benjamin Diokno, who has
ordered a study on the economic impact of halting online
gambling, told Reuters he would rather the operators exit the
country. Regional neighbour Cambodia announced it would ban online
gambling earlier this year.
"There's some benefits, in terms of if they pay their taxes
but there are also some risks. I tend to be risk averse. I'd
rather they leave, if I have my way," Diokno said on the
sidelines of a business event in Singapore.
Online gambling companies, known in the Philippines as POGOs
for Philippine offshore gambling operators, are a boon for the
local economy, drawing many visitors from China who work in
them, fuelling property demand and retail spending.
The POGOs, which bar Filipinos from playing, contribute to
national coffers through license fees.
But Diokno said that the industry contributed only "a few
billion" pesos in tax and had little impact on the real estate
sector, while he said it presented "a risk of money laundering".
China has said it hopes the Philippines will ban online
gaming to support its crackdown on cross-border gambling, which
it said is used by foreign criminals to embezzle funds and
illegally recruit workers.
The Philippine gaming regulator has stopped issuing licenses
to online gambling firms, and lawmakers and some ministers have
called for tighter controls on Chinese visitors, saying many are
illegal workers whose presence raises security concerns.
"We have already stopped giving licenses in the first place.
Should they violate our tax laws, we will expel them," Diokno
said.
According to official data, there are only 60 POGOs
operating in the country, but critics of the industry say that
grossly undercounts the actual number.