Covid-19 is still raging in the Philippines. Meanwhile, the country's government has allowed Chinese casinos to operate again as an "essential" industry.

Philippine President Rodrigo Duterte is working to gradually ease the Covid-19 blockade to facilitate economic growth again. Against this backdrop, the Philippine authorities allowed online Casinos operated by the Chinese to resume operations. This has generated fierce political opposition within the country.

President Duterte's administration has agreed to allow Chinese casinos to reopen in the Philippines during the current anti-Covid-19 social distancing period. Illustration: KT.

Overseas Gambling companies in the Philippines (POGO) are mainly operated by Chinese citizens. These facilities are now increasingly under scrutiny over allegations it is home to crime and social evils. But on the other hand POGO also contributes fees to the administration and in recent years has contributed to the acceleration of economic growth in the capital Manila.

The "Philippine Inter-Agency Task Force for Emerging Infectious Diseases" recently allowed POGO to operate again, with new conditions, including limiting the number of employees per shift, to test negative for Covid-19 before appearing at the casino.

In the past 2 months, the Philippines has imposed very strict anti-Covid-19 blockades. "Essential" industries such as food production, hiring external contractors … although allowed to operate, it must comply with strict limits as in the case of POGO.

Wave of protests against bias against Chinese casinos

As such, philippine President Duterte's administration has treated POGO as an "essential" profession and this has faced a political storm of protest as most Filipino businesses remain closed to implement months-long enhanced community quarantine measures.

In the Philippines, the post-China attitude is adding force. Last week, dozens of lawmakers, including Mr. Duterte's supporters, included public outrage in a new bill aimed at immediately banning POGO's on the pretentation of them creating a "social threat."

Top senators from various political groups have criticized the Duterte administration's seeming bias against Chinese-administered gambling websites.

The bill, led by Philippine House minority leader Bienvenido Abante Jr, attacks Chinese online casinos, treating it as "the source of unimaginable defeat."

This bill argues that it is impossible to justify the operation of those casinos with the amount of revenue derived from it because no matter how large that revenue is, it cannot compensate for the terrible harm to individuals, families and society in general.

The bill also accuses Chinese casinos of mocking Philippine laws on anti-money laundering, immigration, and taxes.

In early May, Philippine Senate minority leader Franklin Drilon expressed his determination to resume an independent commission investigation into POGO and the reopening of these casinos in the midst of the Philippines' ongoing covid-19 lockdown.

Veteran lawmaker Drilon also pledged to investigate the identities of those who had "licensed," thereby exposing allegations of corruption and unsusuped activity. The opposition MP also denounced Mr Duterte's administration as leaning towards China.

Senate President Vicente Sotto III has publicly questioned the Philippine authorities' treatment of Chinese online casinos as "essential" economic zones. This is an issue that many want Mr. Duterte to answer.

Controversy over economic benefits from Chinese casinos

Meanwhile, the Philippines' "business process outsourcing" (BPO) industry has objected to Philippine President Harry Roque's spokesman treating POGO as a form of business process outsourcing.

Rey Untal, head of a local trade association in the information technology sector, argues that Chinese casinos are not part of its BPO industry.

There is also debate about the extent of the economic benefits that POGO brings. According to the Internal Revenue Bureau (BIR, a tax agency in the Philippine Ministry of Finance), most POGO's are late to pay income tax and franchises, which have now reached about 50 billion pesos ($988 million).

Philippine Finance Minister Carlos Dominguez has warned that POGO service providers that want to operate must pay their total income tax debt in 2019.

In addition, the Philippines Anti-Money Laundering Council claims that Chinese-run casinos have been involved in at least $276 million in suspicious activities such as drug smuggling.

In recent weeks, the Filipino public has been unhappy with China itself, not just the issue of online casinos – an activity deemed illegal in mainland China itself and criticized by Beijing.

Amid a wave of vigilance against China, the Chinese Embassy in Manila released a video clip praising China as a good neighbor and a source of help during the Covid-19 pandemic.

The Philippine Television Radio Agency's "Wow China" radio show has been heavily criticized in recent days for playing the a-speak-called china clip.

Netizens of the Philippines expressed dissatisfaction, claiming that the authorities used people's tax money to broadcast Chinese propaganda on the national wave.

But Philippine President Duterte still stands up for these casinos. He said that POGO is clean and that despite being considered a casino, it brings jobs to about 20,000 people in Manila.

According to VOV