Philippines Reevaluate Visa-Free Policy for China Due to POGO Illegalities

The Philippine government under President Ferdinand Marcos Jr. is pulling the emergency brake on travel facilitations for Chinese citizens. The Department of Foreign Affairs (DFA) has launched an official investigation to determine whether the visa-free entry scheme is being systematically exploited for criminal purposes. At the heart of the investigation are the so-called Philippine Offshore Gaming Operators, or POGOs. These companies were originally intended as licensed providers for overseas markets but increasingly became a front for illegal activities. The current review could have far-reaching consequences for the island nation's tourism sector.

The trigger for the tightening was a series of targeted raids by the DFA against suspected illegal POGO hubs. During these operations, 101 foreign nationals were detained and are now awaiting deportation. One figure is particularly explosive: 82 of these individuals are Chinese citizens who entered the Philippines under the new visa-free arrangement. This high proportion suggests that criminal organizations are using the travel facilitation to smuggle personnel into the country for illegal gambling hubs. Palace Press Officer Claire Castro expressed significant concerns to the DFA regarding the adverse consequences of this policy.

Numbers and facts

The economic aspect cannot be ignored in this security debate. China is currently the fourth-largest source market for Philippine tourism. In the first eight months of 2026, the Philippines recorded over 300,000 arrivals from China, accounting for approximately 7 percent of total tourist numbers. In total, the country welcomed 4.42 million visitors during this period. The target for the full year 2026 is an ambitious 6.4 to 6.8 million international guests. Tourism Secretary Dita Angara-Mathay had hoped as recently as last month to expand the visa-free program to additional airports like the Clark Freeport Zone to increase attractiveness.

However, President Marcos Jr. has set a clear line. The entire POGO industry is to disappear completely by January 2027. The reason for this is the massive increase in collateral crime, including kidnappings and scams.

„The DFA would investigate whether the policy was having adverse consequences, particularly whether it was being exploited to facilitate criminal activities in the Philippines." - Claire Castro, Palace Press Officer

Background

For a long time, Chinese tourists were a cornerstone of the Philippine gambling industry, both in land-based casinos and the online sector. But the dark side of POGOs became too large. In addition to security risks, there are also technical challenges. Experts at the IAG Academy Summit in Manila recently argued that Philippine casinos need to better consolidate their data from online and land-based operations to create transparency. The current investigation of visa policy shows that the government is willing to accept short-term losses in tourism to dismantle criminal structures in the long run.

Why it matters for German players

For players in Germany, the developments in the Philippines have no direct impact on the legality of their own gaming but serve as a cautionary tale. While the Philippines struggles with illegal POGOs, the German State Treaty on Gambling 2021 (GlüStV 2021) provides a clear framework. Anyone wishing to play safely in Germany should exclusively use platforms listed on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL). These providers are subject to strict controls, such as a monthly deposit limit of 1,000 euros and a stake limit of 1 euro per spin for virtual slot machines.

The case in the Philippines illustrates the importance of state oversight. While criminal networks there undermine visa rules, systems in Germany like LUGAS and OASIS ensure player protection. German customers are well-advised to avoid providers with licenses from Malta or Curacao, as these do not meet strict German standards and offer no legal protection through the GGL in case of disputes. The security offered by a regulated market is the best remedy against the kind of instability currently shaking the Asian market.

What it means for GGL-licensed casinos

For operators with a GGL license, the situation in Asia reinforces the importance of compliance and Know-Your-Customer (KYC) processes. Philippine authorities must now laboriously try to weed out criminal actors who slipped through gaps in immigration law. German providers, on the other hand, must ensure that players are clearly identified at the time of registration. The strict separation of the legal market from illegal black market structures remains the greatest challenge for the industry worldwide. Those who rely on transparency and state regulation protect themselves from the repressions currently hitting the POGO industry in Southeast Asia.