Philippines thought Pogos were gone. Corruption and AI still power them

Two years after the Philippine government officially outlawed its offshore gaming establishments—commonly known as “Pogos”—the sector continues to operate under a veil of corruption and increasingly sophisticated technology. Recent law‑enforcement actions, reported by the South China Morning Post, reveal that despite the 2024 ban, a network of foreign‑run scam hubs remains active, exploiting both the country’s porous immigration controls and the anonymity afforded by digital platforms. The latest raids, which resulted in the arrest of more than 120 Chinese nationals in Makati and a further 244 foreigners in Zamboanga Sibugay, underscore the challenges facing Manila’s authorities as they attempt to dismantle a resilient illicit economy.

Background: The 2024 Pogo Ban and Its Immediate Aftermath

The Philippine ban on offshore gaming in 2024 was a decisive policy move aimed at curbing the social harms associated with gambling, money laundering, and the proliferation of organized crime. The legislation targeted the sprawling complexes that had sprouted in the southern islands, where foreign operators—predominantly Chinese—ran call‑centre‑style operations that catered to overseas gamblers. The ban was expected to dismantle the physical infrastructure of the industry and force a rapid contraction of associated criminal activities.

However, the enforcement landscape at the time was uneven. While some provincial authorities swiftly shut down visible gambling sites, the underlying networks that facilitated illegal financial flows and recruitment of foreign workers proved more difficult to eradicate. The persistence of these networks set the stage for the covert operations uncovered in the recent raids.

The Makati Raid: A Snapshot of Modern Scam Operations

In September, the National Bureau of Investigation (NBI) executed a coordinated raid on a call‑centre‑style facility in Makati City. The operation resulted in the detention of more than 120 Chinese nationals. According to the source material, the suspects were linked to an “illegal trading” scheme and a “lust scam” that coerced victims—both local and foreign—into sending explicit videos. These videos were later weaponized for blackmail, a tactic that reflects a broader trend of leveraging personal data for extortion.

The Makati case illustrates how scam operators have adapted to the post‑ban environment. Rather than relying on large, brick‑and‑mortar gambling halls, they have shifted to smaller, ostensibly legitimate office spaces that can be more easily concealed within the urban fabric of Manila. The use of “call centre‑style” setups suggests a reliance on high‑volume, low‑cost communication technologies, enabling operators to reach a wide audience while maintaining a low profile.

Zamboanga Sibugay: The Largest Pogo Bust Yet

Following the Makati operation, police conducted a second, larger sweep in the southern province of Zamboanga Sibugay. This raid, described as the “largest Pogo bust,” resulted in the arrest of approximately 244 foreigners. The majority were Chinese citizens, accompanied by two Cambodians. The Bureau of Immigration (BI) reported that the detainees were housed at one of the seized properties while undergoing identity verification before deportation.

The scale of this operation points to a significant concentration of foreign nationals engaged in illicit activities within a single province. Zamboanga Sibugay, historically a hotspot for offshore gaming due to its proximity to the southern islands and relatively lax regulatory oversight, appears to have become a hub for the next generation of scam enterprises. The presence of a sizable foreign workforce suggests that these operations continue to rely on overseas labor, likely because local employment restrictions and heightened scrutiny make domestic recruitment more difficult.

Corruption as an Enabler: The Role of Local Authorities

The persistence of Pogos and related scam hubs, despite a nationwide ban, signals an entrenched system of corruption that facilitates their survival. While the source material does not name specific officials, the fact that large numbers of foreign workers could operate openly in both Makati and Zamboanga Sibugay implies a degree of tacit tolerance or active collusion at the local level. Such environments enable operators to secure premises, obtain utilities, and evade law‑enforcement attention.

Corruption in the Philippines has historically intersected with the offshore gaming industry, where bribes and informal payments have been used to secure permits, police protection, and immigration leniency. The recent raids demonstrate that, even after the formal ban, these corrupt practices have not been fully dismantled. The continued ability of foreign nationals to gather in sizable numbers suggests that identity verification and deportation processes remain vulnerable to manipulation.

Technology’s Double‑Edged Sword: From Call Centres to AI‑Powered Scams

Beyond the human element, the raids reveal a growing reliance on technology to conduct illicit activities. The “lust scam” described in the Makati raid involved the collection and exploitation of explicit video content, a method that leverages digital communication tools to extort victims. While the source material does not specify the use of artificial intelligence, the broader trend in Southeast Asian scam operations points toward increasingly sophisticated tech stacks, including deep‑fake generation and automated phishing scripts.

The shift from traditional gambling to data‑driven extortion reflects a strategic pivot by criminal groups seeking higher profit margins with lower operational risk. By targeting personal privacy and employing blackmail, scammers can extract payments without the need for large cash flows typical of gambling operations. This evolution complicates law‑enforcement efforts, as digital evidence is often dispersed across encrypted platforms and cloud services that lie beyond the immediate reach of local authorities.

Implications for Philippine Policy and Regional Security

The persistence of foreign‑run scam hubs raises critical questions for Philippine policymakers. First, the effectiveness of the 2024 ban is called into question; while the physical gambling infrastructure may have been dismantled, the underlying criminal networks have simply adapted. Second, the role of immigration enforcement emerges as a pivotal point of intervention. Strengthening identity verification, tightening work‑permit issuance, and enhancing inter‑agency coordination could curtail the influx of foreign operators who drive these scams.

Regionally, the Philippines’ struggle mirrors broader challenges across Southeast Asia, where transnational crime syndicates exploit jurisdictional gaps and weak regulatory frameworks. The arrests of primarily Chinese nationals also highlight the cross‑border dimension of the problem, suggesting a need for diplomatic engagement with neighboring states to disrupt recruitment pipelines and financial flows.

Looking Forward: Strategies for Disruption and Prevention

To break the cycle of corruption‑enabled scam operations, a multi‑pronged approach is required. Strengthening anti‑corruption mechanisms within local governments—through transparent procurement, whistle‑blower protections, and rigorous oversight of law‑enforcement activities—can reduce the space in which illegal enterprises thrive. Simultaneously, investing in digital forensics capabilities will enable authorities to trace and dismantle the online infrastructure that underpins modern extortion schemes.

Public awareness campaigns aimed at educating potential victims about “lust scams” and other data‑driven extortion tactics can also diminish the profitability of these crimes. By reducing the pool of susceptible victims, the incentive for foreign operators to establish bases in the Philippines diminishes. Finally, sustained diplomatic dialogue with China and Cambodia, focusing on the repatriation of nationals involved in illicit activities, will reinforce the deterrent effect of deportation and reinforce bilateral cooperation against transnational crime.

This article was produced with AI-assisted research and editorial support. Reporting is based on the source material cited below. Sources: South China Morning Post; scmp.com; Global1.News (09 October 2026).

By Kenji Tanaka, Staff Writer