The International Monetary Fund believes the Philippines has made significant strides in combatting money laundering and terrorist financing.  The Philippines has made substantial progress in its fight against money laundering and terrorist financing, according to the International Monetary Fund (IMF).  This positive assessment follows the country's efforts to address concerns raised by the Financial Action Task Force (FATF), a global watchdog focused on these illicit activities. As reported by the Inquirer, IMF said the Philippines made “significant progress” in tackling outstanding anti-money laundering and counter-terrorism financing (AML/CFT) issues. This progress was further validated by the FATF's initial determination that the Philippines has largely fulfilled its action plan.  “The Financial Action Task Force’s (FATF) initial determination that the Philippines has substantially completed its action plan is welcome,” IMF said in its report.  The FATF had placed the Philippines on its "grey list" in June 2021, a designation indicating increased monitoring due to concerns about the country's AML/CFT framework. Being on the grey list can have negative consequences for a country's reputation and its ability to attract foreign investment. However, with the successful completion of the action plan, the Philippines has taken a significant step towards exiting this list. This action plan was a set of measures the Philippines committed to implementing to address identified weaknesses in its financial system. This addressed key areas such as improving on supervising “Designated Non-Financial Businesses and Professions” such as casinos, real estate, and dealers in precious metals–all of which are vulnerable to money laundering.  Another key area involved enhancing controls to prevent money laundering through casino junkets, which are high-roller gambling tours. The Philippines also tightened its requirements for Money or Value Transfer Services, which are commonly used for remittances. This measure aims to prevent unregistered and illegal remittance operators from facilitating illicit financial flows. Additionally, the country improved law enforcement access to beneficial ownership information, which helps to identify the real owners of companies and prevent the use of shell companies for money laundering. Other improvements included increasing the use of financial intelligence in investigations, boosting the number of money laundering and terrorist financing prosecutions, and implementing measures for the non-profit sector to prevent abuse for terrorist financing purposes. The Philippines also enhanced its framework for targeted financial sanctions related to both terrorist financing and proliferation financing, which involves the financing of weapons of mass destruction. While the completion of the action plan is a major achievement, the IMF emphasized the need for continued vigilance. They stressed the importance of keeping up with evolving FATF standards, especially in preparation for the next mutual evaluation in 2027. The IMF also suggested that reforming the bank secrecy law could further strengthen the country's AML/CFT regime and enhance the supervisory powers of the Bangko Sentral ng Pilipinas, the country's central bank. Read related article: Guidelines Could Cut FATF Grey List Countries In Half

Due to the POGO ban, Metro Manila office rent saw a sharp decline in annual net absorption, dropping to 1,500 sqm in 2024 from 271,250 sqm in 2023, reports Cushman & Wakefield. The office rental market of Metro Manila is facing continued pressure, with rents expected to fall even further in 2025 due to a growing oversupply of vacant office space. According to Cushman & Wakefield's Asia Pacific Outlook 2025 report, the average office rent in the region is forecast to decline by an additional 3.2 percent in 2025, following a 2.8 percent drop in 2024. The decline in office rents is primarily attributed to the large volume of vacant spaces in Metro Manila’s commercial real estate market. Cushman & Wakefield reported that the average headline rent for prime and Grade A office spaces in Metro Manila stood at P1,003 per square meter per month in the third quarter of 2024. This is a decrease from P1,010 per square meter per month in the second quarter of 2024, and down from P1,041 per square meter per month in the same period the previous year. Vacancy Rates Hit 20-Year High Alongside the drop in rents, Metro Manila's office market is grappling with a sharp rise in vacancy rates. The latest data revealed that the vacancy rate for office spaces in the capital reached 18.2 percent in the third quarter of 2024, the highest it has been since the second quarter of 2004. The vacancy rate is up by 136 basis points compared to the same period last year, a worrying indicator for landlords and property owners. The increase in vacancies is largely due to a combination of factors, including the total ban on Philippine Offshore Gaming Operators (POGOs), which has led to a significant shift in space demand. POGOs, once a major tenant in Metro Manila’s office market, have faced stricter regulations in recent years, contributing to the exodus of tenants and an oversupply of space. Declining Net Absorption One of the key metrics impacted by the current market trends is net absorption, which refers to the change in occupied office space over a given period. In 2024, net absorption is expected to plummet to just 1,500 square meters, a significant decrease from the 271,250 square meters absorbed in 2023. The sharp drop in absorption is linked to the reduction in office space demand from POGOs and other sectors affected by the pandemic and regulatory changes. However, Cushman & Wakefield forecasts that from 2025 to 2029, the annual net absorption rate will see a positive turnaround, with an expected increase of 36 percent compared to the 2020-2024 average. This recovery is expected to be driven by the IT-BPM (Information Technology and Business Process Management) sector, which continues to show strong demand for office space, particularly for global capacity centers (GCCs). Additionally, the growing trend of “flight-to-quality,” where tenants seek more modern, collaborative, and sustainable office environments, will play a key role in driving future absorption. Impact of Remote Work and Flexible Arrangements Despite the anticipated recovery in net absorption, the office rental market will continue to face challenges in the short to medium term due to ongoing shifts in work arrangements. The full implementation of the CREATE MORE Act, which promotes flexible work setups for IT-BPM companies, could further impact office space demand. The law encourages remote and hybrid work models, leading to potential space rationalization as companies reassess their office requirements. Cushman & Wakefield also cited the total ban on POGOs as a continuing factor in the high vacancy rates. With POGOs no longer occupying large amounts of office space in Metro Manila, landlords will need to find new tenants to fill these vacancies, which may take time due to the slower recovery of demand from other sectors. Reduced New Supply and Slower Lease Rollovers While vacancy rates are expected to remain elevated, Cushman & Wakefield forecasts a slowdown in the supply of new office space in the coming years. An average of 138,000 square meters of new office space is expected to be delivered annually over the next five years. This is a sharp decline of 23 percent compared to the projected new supply for 2024 and a staggering 80 percent lower than the average new supply in the years prior to the COVID-19 pandemic. As the supply of new office space decreases, the overall absorption rate is expected to improve, with more spaces being taken up in the medium term. The reduced new supply will help ease the oversupply situation, although vacancy rates may remain high for some time. The lack of new developments will also reduce the risk of lease rollovers, though at a slower pace than anticipated. Outlook for 2026 and Beyond Looking further ahead, Cushman & Wakefield projects that the office rental market in Metro Manila will begin to recover by 2026. Headline rents are expected to grow at an average annual rate of 3.5 percent from 2026 to 2029, signaling a gradual recovery for the sector as the demand for quality office spaces rebounds. As businesses adapt to new ways of working and office space requirements evolve, the market will likely continue to experience shifts. The growing preference for innovative office designs, sustainable practices, and modern amenities will influence the future landscape of Metro Manila’s office rental market. While Metro Manila’s office rental market faces challenges in the short term, including elevated vacancy rates and declining rents, a recovery is expected, driven by demand from the IT-BPM sector and a growing focus on quality office spaces. However, flexibility in work arrangements and regulatory changes will continue to shape the market dynamics moving forward. Read related article: POGO Exodus Leaves 274,000 sqm of Office Space in 2024

Thailand’s government will have the final say on where its casinos will be as it moves closer to finalizing its proposal to mount entertainment complexes.  Thailand is moving closer to legalizing casinos, with a bill currently under development that will give the government significant control over where these entertainment complexes will be located. According to a recent report in the Bangkok Post , the government will have the final say on the placement of these casino-entertainment venues. "If the locations are chosen by the government, this will allow investors to compete fairly in the bidding. This will prevent the bid specifications or conditions from being designed or fixed to favour a particular bidder,” Deputy Finance Minister Julapun Amornvivat said. He added: "Some investors may have their own land and want to push a casino-entertainment complex to be constructed on their land," he added. This decisive government role underscores the strategic approach Thailand is taking towards integrating casinos into its economic landscape. By retaining the power to determine locations, the government aims to maximize the potential benefits while mitigating potential negative impacts. This centralized control allows for careful consideration of factors such as economic development, tourism promotion, and social implications. The bill, which is expected to be submitted to the cabinet by the end of the year, represents a significant step towards legalizing casino operations in the country. If passed into law, it is anticipated to provide a substantial boost to both tourism and the broader Thai economy. Proponents argue that legalized casinos will attract high-spending tourists, generate substantial tax revenue, and create new employment opportunities. The move to legalize casinos reflects a growing trend in Southeast Asia, with several countries in the region exploring or implementing similar policies. This competition for tourism revenue is likely a contributing factor to Thailand's push to establish a regulated casino industry. While the details of the bill are still being finalized, the emphasis on government control over location decisions signals a cautious yet determined approach to integrating casinos into Thailand's economic fabric. The anticipated submission of the bill to the cabinet marks a crucial milestone in this process, and the outcome will be closely watched by both domestic and international stakeholders. (What will it take for casinos to be legalized in Thailand? Find out through ACN’s in-depth report   here .)  Read related article: Thais “Polarized, Skeptical” About Casino Push: Study

Greg Hawkins was appointed acting Chief Operating Officer of Bloomberry Resorts Corp, the operator of Solaire Integrated Resorts.  MANILA – Bloomberry Resorts Corp, operator of the Philippines' Solaire integrated resorts, has appointed Greg Hawkins as Acting Chief Operating Officer (COO), Inside Asian Gaming  reports. This follows the sudden retirement of Tom Arasi, who stepped down for personal reasons. Hawkins, formerly Chief Casino Officer at Star Entertainment Group and currently head of Solaire Resort North in Quezon City, assumed the interim COO role on December 19. He will oversee operations at both Solaire Entertainment City and Solaire North, as COO of Bloomberry’s operating subsidiary, Bloomberry Resorts and Hotels Inc (BRHI). Arasi’s departure, announced earlier this week, marks the end of a significant era for Bloomberry. He played a crucial role in establishing Solaire as a market leader in the Philippines, overseeing the launch of both Solaire Entertainment City in 2013 and Solaire Resort North earlier this year. He also outlined plans for Bloomberry’s third integrated resort in Cavite. Arasi ranked No. 40 in Inside Asian Gaming’s  2024 Asian Gaming Power 50 list. Hawkins’ appointment comes after his departure from Star Entertainment Group following an inquiry into The Star Sydney’s suitability in 2022. He was among 11 current and former directors and officers of Star facing civil penalty proceedings brought by the Australian Securities and Investments Commission (ASIC) for alleged breaches of their duties under the Corporations Act.  ASIC alleged failures to adequately address risks related to money laundering and criminal associations in dealings with Asian junkets. Specifically, Hawkins, along with others, was accused of not addressing money laundering risks posed by Macau’s Suncity Group. Read related article: Solaire to Launch Gaming App in the Third Quarter of 2025

Morgan Stanley analysts predict that Macau's casino gross gaming revenue (GGR) could reach around MOP238.35 billion (US$29.78 billion). Morgan Stanley has recently lowered its forecast for Macau’s casino gross gaming revenue (GGR) in 2025, signaling a more conservative outlook for the city’s gaming sector. The investment bank now predicts that GGR will grow by 4.8 percent year-on-year, reaching approximately MOP238.35 billion (US$29.78 billion). This figure represents a 4.0-percent reduction from its prior projection, according to its report issued on December 17, 2024.  The revised estimates extend beyond GGR to include earnings before interest, taxation, depreciation, and amortization (EBITDA) for Macau’s casino operators. Morgan Stanley expects combined EBITDA for the industry to hit US$7.99 billion in 2025, which is 7.2 percent lower than its previous forecast. Nonetheless, this figure would still mark a 5.7-percent improvement compared to 2024 levels. The bank’s analysts, Praveen Choudhary, Gareth Leung, and Stephen Grambling, provided insights into the adjustments. They were cited by GGRAsia as saying that Macau’s “GGR and EBITDA could grow by mid-single digits in 2025” but emphasized a cautious stance on industry margins. “We are below sell-side consensus as we are more conservative on margins,” the analysts wrote. They anticipate that weak GGR performance in December 2024 will likely be followed by a stronger first quarter in 2025. One of the key factors influencing the lowered EBITDA forecast is the increased reinvestment costs that many operators are expected to incur. While the bank’s mass GGR assumption remains steady at 118 percent of 2019 levels, these additional costs have led to a 7-percent reduction in the overall EBITDA forecast for 2025.  “We are 6-percent below sell-side consensus as we mark to buy-side consensus, which is lower, in our view,” the analysts explained. In terms of market performance, Morgan Stanley identified Sands China Ltd, Galaxy Entertainment Group Ltd, and SJM Holdings Ltd as likely “gainers” of increased mass-market GGR share in 2025. Conversely, the bank projects that MGM China Holdings Ltd, Wynn Macau Ltd, and Melco Resorts & Entertainment Ltd may experience slight declines in their mass-market share next year. These projections come amidst broader optimism from Macau’s government regarding the city’s gaming and tourism sectors. The government has forecast MOP240 billion in casino GGR for 2025, a figure described by Chief Executive Ho Iat Seng as both “definitely achievable” and a “conservative estimate.” Additionally, Macau’s Secretary for Economy and Finance, Lei Wai Nong, has expressed confidence in the city’s ability to attract visitors. Speaking in late November, Lei projected that Macau could welcome 36 million visitors in 2025, representing a 9-percent increase from the 33 million expected in 2024. Read related article: What Will Happen to Satellite Casinos of Macau?

A report shows that the Philippine office leasing market expanded by 4% despite the ban on Philippine Offshore Gaming Operators (POGOs).  The Philippine office leasing market has defied expectations, expanding by 4% in 2024, despite the government's stringent ban on Philippine Offshore Gaming Operators (POGOs). This growth, totaling 1.1 million square meters (sqm) in transacted deals, is primarily driven by the increased demand from government agencies and traditional offices. Government expansions, particularly relocations and expansions of government offices, have significantly contributed to the market's growth, accounting for 122,000 sqm of leased space. Traditional offices, including corporate headquarters and business centers, have also witnessed a 13% surge in demand, totaling 492,000 sqm. Leechiu Property Consultants said in a release cited by the Philippine Star: “This expansion comes despite challenges such as the POGO ban, high interest rates, and inflationary pressures.” The real estate market experienced contractions due to the POGO ban, leading to a 65% increase in vacated office spaces, totaling 690,000 sq.m. The POGO sector alone accounted for 274,000 sq.m. of these vacancies, with the majority occurring in the last two months of the year.  The POGO ban, while initially causing a 65% contraction in the market, has accelerated a shift towards more sustainable tenants. The IT and Business Process Management (IT-BPM) sectors have adapted to the changing landscape by relocating or consolidating their operations. This strategic move has helped stabilize the market and mitigate the negative impact of the POGO ban. However, the market still faces challenges such as high-interest rates and inflationary pressures. Despite these headwinds, the outlook for the office leasing market remains optimistic. Office vacancy rates remained elevated at 18%, with a total of 3.3 million sq.m. of vacant space. LPC's Director of Commercial Leasing, Mikko Barranda, noted that while vacancies are high, supply and demand trends suggest the market is moving towards equilibrium, with clearer signs of recovery expected by 2027.  Metro Manila recorded a total leasing demand of 881,000 sq.m., with the Bay Area emerging as the top-performing district, primarily due to government relocations. Outside Metro Manila, Cebu led the provincial demand with 113,000 sq.m., representing nearly half of the total demand in provincial areas.  Looking ahead, LPC anticipates that the market will stabilize, with vacancy rates returning to pre-pandemic levels by 2030.  The firm also highlighted the growing demand for data centers in the Philippines, driven by the adoption of artificial intelligence (AI) and the country's strategic location in the Asia-Pacific region. This trend is expected to further bolster the real estate market in the coming years.  As the Philippine economy continues to evolve, the office leasing market is poised to adapt and thrive. The increasing demand from various sectors, coupled with strategic real estate investments, will likely drive further growth. Read related article: POGO Exodus Leads to Increased Vacancies in PH Office Spaces

Macau aims to connect its digital Macau Pataca with the digital renminbi and digital Hong Kong dollar through its e-MOP prototype, advancing Macau digital currency. The Macau SAR Government has officially launched a prototype system for its digital currency, the Digital Macau Pataca (e-MOP), marking a significant step in financial innovation within the Greater Bay Area. The initiative aims to enhance cross-border payment systems, streamline transactions, and bolster economic integration with neighboring regions like mainland China and Hong Kong. Secretary for Economy and Finance Lei Wai Nong emphasized the strategic importance of the e-MOP in an article published by Macau Post Daily. With the Greater Bay Area strengthening financial cooperation, the legal digital currency sector is expected to achieve seamless interoperability in the future. Lei highlighted that integrating the e-MOP with the digital renminbi (China) and digital Hong Kong dollar would create substantial opportunities for cross-border trade and payments. Macau’s unique position as a regional gaming and tourism hub makes this development especially significant. While the Macau Pataca remains the official currency, the Hong Kong dollar is widely used for gaming transactions, and the renminbi dominates in mainland China, where many of Macau’s visitors originate. Features and Functionality of the e-MOP The Monetary Authority of Macau (AMCM) unveiled several key features of the e-MOP system during the launch. Chairman Chan Sau San explained that the Digital Macau Pataca will have the same legal status as physical banknotes and coins, ensuring its acceptance as legal tender. The e-MOP is recognized as legal tender and cannot be refused for payment. This parity with physical cash sets the foundation for widespread adoption across Macau’s economy. Two types of e-MOP wallets will be introduced: Soft Wallets: These digital wallets come in varying tiers to accommodate different user needs. They will support value storage, money transfers, and QR code-based payments. Soft wallets can be topped up via card transfers or other electronic methods. Hard Wallets: Designed as physical cards, hard wallets will allow cash top-ups through self-service exchange machines. These machines will support the Macau Pataca and various foreign currencies, ensuring ease of use for locals and tourists alike. The hard wallet is particularly geared toward individuals who may not be tech-savvy, such as elderly citizens and young children, ensuring that the digital currency remains accessible to all. Benefits for Businesses and Consumers One of the most significant advantages of the e-MOP is its ability to enable instant transaction settlements. Unlike mobile payment platforms, where businesses must wait for banks or financial institutions to finalize payments, the e-MOP ensures immediate settlements at the time of the transaction. This feature eliminates credit risks and improves cash flow, particularly for small and medium-sized enterprises (SMEs). Chan highlighted that a major benefit of the Digital Macau Pataca lies in its capability to enable merchants to settle transactions instantly, significantly boosting the operational efficiency of small and medium-sized businesses. For consumers, the e-MOP offers faster, safer, and more convenient financial transactions. Whether for retail purchases or personal transfers, users will benefit from simplified processes that reduce the time and cost associated with traditional banking systems. Focusing on Retail with Future Expansion Plans The initial phase of the e-MOP rollout will focus on retail applications, such as small-scale payments in stores and restaurants. However, the AMCM plans to expand its use into wholesale markets as technology and financial infrastructure evolve. Additionally, the authority will explore the integration of the e-MOP with other digital currencies, including China’s digital renminbi and the digital Hong Kong dollar. This move would enable real-time cross-border transactions, further streamlining payments for tourists and businesses operating in the Greater Bay Area. Reducing time and transaction costs will be a key benefit of this integration. A Catalyst for Digital Transformation The Macau government views the e-MOP as a tool for driving digital transformation within the local economy. Secretary Lei underscored that the digital currency will improve the efficiency of payments, promote financial inclusion, and stimulate economic innovation. The government also published a white paper detailing the e-MOP’s status as a legal tender. Backed by sufficient assets held by the AMCM, the digital currency carries zero credit risk and holds equal monetary value to physical cash. The launch of the Digital Macau Pataca prototype represents a significant leap forward for Macau’s financial system. By offering real-time settlements, enhancing accessibility for all demographics, and supporting cross-border interoperability, the e-MOP is set to transform how payments are conducted in the region.  Read related article: Macau Casino Revenues Up 15% to $2.3 Billion in Nov 2024

PAGCOR will get a new 40,000 sqm. headquarters near the airport, thanks to a 25-year lease with San Miguel Corporation. San Miguel Corporation (SMC) and the Philippine Amusement and Gaming Corporation (PAGCOR) have inked a 25-year lease agreement for a 2-hectare portion of the 15-hectare Nayong Pilipino property in Pasay City. This strategic partnership will see SMC construct a new P2.45 billion headquarters for PAGCOR at no cost to the government.   The remaining 13 hectares of the property will be utilized by SMC for its ambitious airport development project. This project aims to significantly contribute to the country’s economic growth by addressing the pressing issue of airport congestion.   SMC Chairman and CEO Ramon S. Ang, as reported by Daily Tribune, expressed optimism about the partnership, stating, "Our goal is to maximize the potential of this property for the public’s benefit, ensuring the success of our airport development." PAGCOR Chairman and CEO Alejandro Tengco highlighted the benefits of the new headquarters, emphasizing its role in consolidating operations, creating a world-class facility.  “This project will be more than just a structure,” Tengco said, as reported by The Daily Tribune.“It reflects PAGCOR’s commitment to creating a world-class work environment for its employees; a reflection of our identity, core values and aspirations. “For many years, PAGCOR has operated across various rented locations, with our employees spread out and often working under less-than-ideal conditions. “While we have always managed to deliver on our mandates, we’ve long dreamed of a day when we could bring everyone together under one roof – a place where we could foster a stronger sense of community, collaboration and shared purpose.” PAGCOR will also generate additional income by leasing out unused space in the new building. Read related article: PAGCOR CEO: Online Gaming is the Future of the Industry

A report by Morgan Stanley showed the Philippine government collected US$490 million in taxes from the online gaming sector in the third quarter of 2024 alone. Online gaming in the Philippines is now the biggest source of tax money for the government, according to a study.  A report by Morgan Stanley showed that the Philippine Amusement and Gaming Corporation (PAGCOR) collected a staggering US$490 million in taxes from the online sector in the third quarter of 2024 alone. As reported by Inside Asian Gaming, the sector benefits from a higher tax rate of 35%, although it has been gradually reduced from 50% two years ago. Secondly, the increasing popularity of online gaming among Filipino players has driven significant growth in the industry. A key player in this booming market is DigiPlus, a leading B2C online gaming operator that now holds a 50 percent market share. With an impressive 30 million registered users, DigiPlus has surpassed even established industry giants like Bloomberry Resorts Corp., the operator of Solaire Resort & Casino, in terms of both gross gaming revenue (GGR) and earnings before interest, taxes, depreciation, and amortization (EBITDA). Bloomberry is set to launch its own online gaming app in the third quarter of 2025, but will operate under a separate brand from the existing Solaire app. Morgan Stanley analysts noted that increased competition is likely on the horizon, especially with PAGCOR's decision to lower taxes on domestic online gaming gross gaming revenue (GGR). According to Inside Asian Gaming, starting January 1, 2025, license fees for online gaming will drop to 25% for integrated resorts and 30% for other land-based operators. This adjustment aligns online gaming taxes more closely with land-based GGR rates, which are taxed at 25% for mass gaming and 15% for junket operations. PAGCOR has been actively promoting the growth of domestic online gaming (also known as e-Games), which encompasses various segments such as eCasino, eBingo, sports betting, and specialty games. This strategic focus on online gaming aligns with the government's decision to phase out Philippine Offshore Gaming Operators (POGOs) by January 1, 2025, as ordered by President Ferdinand Marcos Jr. Read related article: PAGCOR Seeking Partner for Online Casino Launch in 2025

Macau gaming tax revenue for the first 11 months of 2024 hit MOP81.04 billion ($10.12 billion), up 37.2% year-on-year, per the Financial Services Bureau (DSF).  Macau's gaming industry continues to show strong post-pandemic recovery as the government reported MOP8 billion ($1 billion) in gaming revenue tax for November 2024. This marks a 20.35 percent increase compared to October's figures and a 6.4 percent rise year-on-year. The impressive numbers align with October's gross gaming revenue (GGR) peak of MOP20.78 billion ($2.6 billion), the highest since the pandemic's impact on the industry. According to the Financial Services Bureau (DSF), tax revenue from gaming for the first 11 months of 2024 reached MOP81.04 billion ($10.12 billion), reflecting a significant 37.2 percent increase compared to the same period in 2023. The gaming sector has clearly emerged as the backbone of Macau's economy, contributing 80.64 percent of the government's total revenue for the January-to-November period.   During the 11-month timeframe, Macau’s overall government revenue stood at MOP100.49 billion ($12.55 billion). Taxes collected from the gaming industry alone accounted for nearly 97 percent of the full-year budgeted estimate, underscoring the sector’s critical role in bolstering public finances.   The surge in tax revenue is directly tied to the growth in gross gaming revenue. Between January and November 2024, Macau’s GGR hit MOP208.58 billion ($26.04 billion), a remarkable 26.8 percent rise compared to the same period last year. The figures reflect the region's ongoing recovery as international travel resumes and tourists flock back to the world’s largest gaming hub.   November’s tax revenue, paired with October’s GGR performance, highlights the sector's stabilization following the COVID-19 disruptions. The sustained growth also reinforces Macau's reliance on gaming as its primary economic driver, despite calls for greater diversification in the local economy.   As the year nears its close, Macau’s gaming tax revenue is on track to exceed initial government projections. With just one month remaining, the gaming taxes collected already represent 96.9 percent of the year’s target. December’s revenue is expected to further push these numbers past the annual forecast, providing additional fiscal flexibility for the government.   The sharp rise in both GGR and tax revenue also signals that the tourism and gaming industries are returning to pre-pandemic levels. This recovery is critical for Macau, as it strengthens its position as a global gaming capital while contributing substantially to the local economy. Macau's heavy dependence on the gaming sector is evident in its government revenue structure, with taxes from casinos forming the majority of its income. While the strong performance of the gaming industry provides a financial boost, it also underscores the need for economic diversification to reduce vulnerability to external shocks, such as global pandemics or geopolitical tensions.   Efforts to promote non-gaming activities and industries have been ongoing, but the latest figures suggest that gaming will remain the cornerstone of Macau’s economy in the foreseeable future. As tourists and high-rollers continue to return, industry experts anticipate continued growth into 2025.    Read related article: Macau Casino Revenues Up 15% to $2.3 Billion in Nov 2024

Due to the Absence of Provision, 53,700 POGO licenses were canceled by Nov 29, 2024, with 18 internet gaming licensees voluntarily surrendering permits. The ban on Philippine offshore gaming operators (POGOs), announced by President Ferdinand Marcos Jr., has revealed several challenges for the government. A key concern is the Absence of Provision for managing assets—such as buildings and lands—seized from operations tied to alleged criminal activities. These confiscated properties now raise questions about proper utilization and the legal framework surrounding them. In recent months, lawmakers and officials have suggested various potential uses for these idle properties. Proposals have included converting them into evacuation centers, schools, or government offices. However, the process of repurposing these facilities is complicated by the lack of clear legal provisions that allow the state to temporarily use seized assets pending the resolution of forfeiture cases. Justice Undersecretary Nicholas Ty, who heads the Inter-Agency Council Against Trafficking (IACAT), emphasized this gap, particularly regarding resources that could be used to support victims of trafficking and POGO employees rescued during raids. “[There is] an absence of a clear provision that expressly empowers [the] state [to] provisionally use assets pending forfeiture, especially money that can be used to maintain victims and facilities,” Ty was quoted as saying in an Inquirer report. Although the Anti-Financial Account Scamming Act, signed into law in July 2024, aims to address this issue, IACAT is still awaiting its implementing rules and regulations. Meanwhile, the government has resorted to a "creative solution" by commandeering raided facilities to temporarily house thousands of trafficking victims. According to IACAT’s records, more than 3,000 POGO employees have been rescued, with many presumed to be victims of human trafficking. Ty highlighted the lack of sufficient shelters for these individuals, noting that releasing them without proper care could lead to re-trafficking or revictimization. This makes the temporary use of confiscated facilities a practical, albeit legally ambiguous, solution. The extent of seized properties remains unclear, as authorities have yet to release a comprehensive inventory detailing the total number of buildings, their floor area, land size, and estimated value. Moreover, no plans have been disclosed regarding inspections to determine the suitability of these properties for conversion into classrooms, offices, medical facilities, or evacuation centers while legal proceedings are ongoing. President Marcos, who formalized the POGO ban in November through Executive Order No. 74 , has set a year-end deadline to shut down all offshore gaming operations. He has also warned against "guerrilla" or rogue POGO and internet gaming licensees attempting to continue operations after their licenses are revoked. “We will never let them wreak havoc on us again. Anyone who attempts to launch illegal operations will face the full force of our laws,” Marcos said in a social media post following a meeting with key government officials, including Philippine Amusement and Gaming Corporation (PAGCOR) chair Alejandro Tengco and Interior Secretary Jonvic Remulla. As of late November, Malacañang reported that 53,700 POGO licenses had been canceled, with 18 internet gaming licensees voluntarily surrendering their permits. By December 31, all licenses will be void, with the government aiming to declare the Philippines “POGO-free” by January 2025. Data from the Duterte administration showed that over 353,000 visas had been issued to foreign workers employed in POGO operations. However, this number has significantly dwindled, with recent figures indicating that only 33,863 workers remain, of which 23,099 have already left the country. A significant portion of these workers, primarily Chinese nationals, initially entered the Philippines as tourists and later took up jobs in POGO establishments. Investigations into the “pastillas scam” revealed that the actual number of foreign workers, both legal and illegal, far exceeds the visas issued. This discrepancy underscores the broader issue of illegal employment and human trafficking within the sector. The legal framework also presents challenges in identifying trafficking victims. Ty noted that many rescued individuals do not perceive themselves as victims, complicating efforts to provide assistance. Unlike traditional perceptions of trafficking victims as impoverished and uneducated, many of those rescued from POGO hubs are college graduates from middle-income families and are technologically savvy. This complexity highlights the evolving nature of human trafficking and the need for nuanced approaches to address it. Ty also pointed out that under the Anti-Trafficking in Persons Act, the proceeds and instruments of human trafficking can be forfeited in favor of IACAT to benefit victims. However, implementing this provision requires overcoming significant legal and logistical hurdles. Authorities are also exploring the use of anti-corruption laws to prosecute enablers of trafficking, including complicit government officials. Read related article : Office Market in Metro Manila Hits Negative Net Take-up After POGO Ban

According to the Department of Finance , the economic costs of POGOs amount to a total of P265.74 billion, which outweighs the supposed benefits amounting to P166.49 billion. The Philippine government's decision to shutter the operations of Philippine Offshore Gaming Operators (POGOs) by the end of the year will not leave a big dent in the country’s economy, based on data from the Department of Finance (DOF). According to the DOF, the economic costs of POGOs amount to a total of P265.74 billion, which significantly outweighs the supposed benefits amounting to P166.49 billion. While some may argue that the industry contributed to the nation's coffers, the economic costs of POGOs far outweigh any potential benefits.  "Abonado pa ng sambayanang Pilipino ng halos isang daang bilyon. (The Filipino people are owed nearly a hundred billion pesos)," Senator Joel Villanueva, co-author of the Anti-POGO Act of 2024, emphasized in his speech at the Senate on December 9, 2024. "These amounts do not even include social costs - loss of life, physical and psychological harm to victims, and the increased sense of fear and anxiety in communities associated with POGO activities. Hindi po ito basta-basta masusukat sa bilang o presyo (These cannot simply be quantified)." Beyond the economic implications, the social costs of POGOs have been significant. The industry has been linked to various social ills, including increased crime rates, human trafficking, and prostitution. The senator highlighted the importance of the Anti-POGO Act in ensuring a comprehensive and lasting ban on POGO operations. "This legislation is vital because the ban must extend beyond the current administration. It will be instrumental in eradicating all traces of POGOs and preventing their resurgence," he stated. As POGOs wind down their operations, thousands of Filipino workers face uncertainty and potential unemployment. To mitigate the impact of job losses, the Anti-POGO Act includes a Workers' Transition Program, which aims to provide affected workers with job training, retraining, and placement assistance. "The ban on POGOs is about safeguarding our society, our economy, and our future. There are still over a hundred POGOs currently operating, notwithstanding the President's order. Thus, this legislation is important and necessary because the ban should go beyond the present administration. This Act will be instrumental in eradicating all traces of POGOs in our country, including any means for them to return and resume their operations. "With the closure of POGOs, many Filipino workers face sudden unemployment, uncertain futures, and the immense challenge of finding new jobs. Our duty as lawmakers is to make sure that no one is left behind and to help affected Filipino workers find secure and quality jobs through a Workers' Transition Program. This is one of the salient features of the Bill filed by this representation and we thank the good sponsor for including this important provision in this measure," Senator Villanueva said.  The senator's call for the swift passage of the Anti-POGO Act underscores the urgency of addressing the multifaceted challenges posed by the industry.  “I think other revenue enhancing measures of the Department of Finance will make up for this [closing down POGOs],” Interior and Local Government Secretary Juanito Victo Remulla Jr. was quoted as saying in a report published by Business World.  Read related article:   PH Electronic Gaming Sector GGR Hits ₱94.61B in Q3 2024