Marcos says Philippines ‘cannot yield’ territory, bans Pogos during state of union

Without naming China in his speech, Marcos said the Philippines would continue to “find ways to de-escalate tensions in contested areas … without compromising our position and our principles”.

His remarks came after the Philippines and China agreed to a “provisional arrangement” for resupply missions to Filipino troops stationed at Second Thomas Shoal, which has been the focus of violent clashes in recent months.

Beijing claims almost the entire South China Sea and asserts its stance by deploying coastguard and other vessels to patrol the disputed waters and reefs.

On Monday, Marcos Jnr also banned gambling operations set up in the Philippines that target gamblers overseas, including Chinese mainlanders, because of crimes linked to the industry.

“Effective today, all Pogos are banned,” he said.

Marcos ordered the gaming regulator to wind down and cease such offshore gaming operations by the end of the year.

“The grave abuse and disrespect to our system of laws must stop,” Marcos said.

The firms had ventured into illegal activities such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, torture and even murder, the President said in his State of the Nation address.

Philippine offshore gambling operators, or Pogos, emerged in 2016, with companies setting up shop in the Southeast Asian nation and targeting overseas markets, including China where gambling is banned.

Senators and business groups have asked Marcos to ban Pogos, which flourished during the term of President Rodrigo Duterte.

The chief of the gaming regulator did not immediately respond to a request for comment.

The Pogos industry employed around 25,000 Filipinos and nearly 23,000 foreigners as of end-2023, government data show.

Additional reporting by Bloomberg