Cagayan province’s northernmost town Sta Ana grapples with POGO ban

BAGUIO CITY (December 28, 2024) -- Sta. Ana, Cagayan where interactive gaming began in early 2000s, is reeling from the government’s decision to shut down Philippine Offshore Gaming Operations (POGOs).

The exit of POGOs and closure of internet gaming facilities is projected to cost the town’s economy around 2,000 jobs and livelihood opportunities, according to Mayor Nelson Robinion. 

He confirmed that many locals, as well as workers who relocated to the town, now face an uncertain future as the job market struggles to absorb the displaced workers.

Malacañang had earlier mandated the Cagayan Economic Zone Authority (CEZA), which oversees the Cagayan Special Economic Zone and Freeport (CSEZFP) in Sta. Ana, to comply with the nationwide ban on POGOs under President Ferdinand Marcos Jr.’s Executive Order No. 74.

CEZA was tasked with revoking all POGO licenses within its jurisdiction and ensuring a complete cessation of operations.

Former public relations consultant of CEZA Dindo Danao said, CEZA was Asia’s first regulated jurisdiction for interactive gaming established in 2003.

CEZA then introduced “i-gaming” to attract foreign investment by licensing offshore gaming operators, positioning Sta. Ana as a brand for regulated gaming.  “It was a unique marketing strategy,” said Danao, who had practiced public relations for 40 years.

According to Danao, CEZA’s jurisdiction hosted dozens of operators, with revenues funding infrastructure projects such as an international airport and a 10-hectare cyber village aimed at enhancing Cagayan Valley’s accessibility and investor appeal.

“In 2016, the landscape changed dramatically with the Philippine Amusement and Gaming Corp.’s (PAGCOR) launch of its POGO framework. Offering operators more favorable conditions, PAGCOR’s centralized system led many companies to relocate, leaving CEZA struggling to retain its market share,” added Danao.

The abrupt closure of POGOs plunged Sta. Ana into economic uncertainty, Danao, who was born and raised in Sta Ana believed. “Once a thriving industry providing jobs in customer service, logistics, security and support roles, POGOs departure has left thousands of Sta. Ana residents unemployed.”

“My hometown depended traditionally on agriculture. It had become increasingly reliant on POGOs, creating a narrow economic base,” he pointed out.  “With the ban, local businesses that thrived on the gaming industry – from food stalls to retail shop – are now struggling to stay afloat.”

Economic analysts claim CEZA and the local government’s efforts to attract new industries are still in their infancy, and the success of these initiatives remain uncertain.

“Sta. Ana’s journey provides a lesson about the dangers of over-reliance on a single industry. The town’s resilience and adaptability will be tested as it strives to create a more stable and diversified economy,” Danao pointed out.