Gambling Dilemma: Rappler

The global gambling industry is worth about $500 billion, with online gaming on the rise. China has asked the Philippines to shut down its online gambling sites that target mainland Chinese players. The Philippines president is expected to support the POGOs – operations that hire Chinese speakers and target the mainland. “[T]he rise of the POGOs is also a lesson for the Philippine government and industry on how to not disregard the social effects of large flows of migrant workers, whether for temporary employment or otherwise – especially in sectors such as tourism or construction,” explains Bob Herrera-Lim for Rappler. “Beijing is averse to people and families losing their savings or falling into debt.” Online gambling is illegal in mainland China, and the government receives no revenues from the POGOs. The Philippines only recently began collecting taxes. Gambling is often associated with corruption. Herrera-Lim warns cross-border differences can trigger “nationalism or worse, xenophobia.” He points to parallels between China’s worries about unregulated gambling operations taking advantage of workers and citizens and Filipino concerns over abuse of overseas workers. He concludes that sensible foreign investors strive to work with local communities and avoid cultural conflict. – YaleGlobal