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With its marble walls, gilded lobby and sign with Chinese characters that can mean “paradise on earth,” the Skytop International Club never tried to be subtle.
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Opened last year on the fringes of the Makati business district, Manila’s Wall Street, the club became known as a place where men would spend big money on booze and women. The decadence ended on Sept. 30, when officers from the National Bureau of Investigation, or NBI, barged in and rescued 95 women — 91 of them Chinese — believed to be victims of sex trafficking. Seven Chinese men and seven local cohorts were arrested.
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Raids like this are expected to intensify in 2020, as Manila’s and Beijing’s law enforcement agencies team up to stop a vicious cycle of vice blamed on the dramatic rise of online casinos.
Businesses known as Philippine offshore gaming operators, or Pogos, rake in billions of dollars a year. Canadian online casinos 2013. Most are Chinese-run and cater to Chinese gamblers. President Rodrigo Duterte’s government sees them as a valuable source of revenue and has resisted calls from China to ban the industry.
Gradually, however, the Philippine authorities are recognizing the real-world costs of this murky cyberworld and are becoming more receptive to cooperation with Beijing, which considers online gambling the “most dangerous tumor in modern society.”
Just last week, Philippine police arrested 335 Chinese employees of one local gaming operator for alleged investment scams and other financial crimes. Officials say prostitution rings like Skytop’s suspected operation are fueled by Pogo insiders eager to spend their spoils.
Now, the involvement of Chinese law enforcement will only turn up the heat.
On Dec. 12, a “high level” Chinese delegation met with officials from the NBI to discuss sharing information on Chinese criminal elements in the Southeast Asian country. “They are very much interested in operations by Philippine law enforcers to go after the syndicates or members of the Chinese mafia who are involved in prostitution, illegal Pogo operations and kidnapping,” NBI Deputy Director Ferdinand Lavin told reporters on Dec. 17.
A day after the visit from the Chinese delegation, NBI agents raided a brothel in Las Pinas City, south of Manila. Five Chinese women believed to have been forced into prostitution were rescued, while their suspected Chinese pimps were arrested and are facing deportation.
“This is a warning,” Lavin said at the briefing. “This is one of the crimes related to Pogo operations.”
Separately, Lavin told the Nikkei Asian Review that information sharing on such crimes will officially begin next year. “Operationalization and tactical enforcement will immediately take place,” he said.
On the surface, the Duterte government has been wildly successful at taking advantage internet betting — a booming business expected to be worth $60 billion worldwide by next year, according to the Philippine National Tax Research Center.
In late 2016, Duterte’s new administration opened the country’s doors to online casino operators, allowing dozens of companies to move in. The welcome mat was unfurled just as Chinese high-rollers were looking for an alternative to brick-and-mortar casinos in Macao, where they faced intensifying scrutiny under President Xi Jinping’s anti-corruption drive. Gambling, of course, is illegal on the mainland.
Gta 5 online ps4 2019 casino car locust. In the ensuing three years, Pogos hired over 400,000 people, many of them Chinese who took marketing and customer service positions. These workers — as well as suspected members of Chinese crime syndicates — joined surging numbers of Chinese tourists, drawn by a relaxed visa policy stemming from Duterte’s Beijing-friendly foreign policy.
But while the operators flourished and the gamblers got their fix, they did not escape China’s watchful eye.
An NBI official said Beijing worries the industry’s growing reputation for criminality is giving China a bad name in the Philippines, where the public already distrusts the emerging superpower amid a territorial dispute in the South China Sea.
In August, the Chinese government accused the Pogos of causing gambling addiction and other “social problems” in China. It also raised concerns that the sector is a conduit for cross-border money laundering.
China’s pressure campaign against online casinos is part of a broader push “to expand its policy reach across borders where substantial expatriate Chinese-national populations are living and working,” said Sam Ramos-Jones, business development director at PSA Consultancy, which tracks the gaming sector.
The Chinese Embassy early this year blew the whistle on an online investment scam in the Ortigas business district of Metro Manila, leading to the arrest of over 200 Chinese nationals. The Philippines, meanwhile, has scrambled to deal with the rising prostitution as well as an alarming series of kidnappings.
By Cliff Venzon, Nikkei Asian Review, 24 December 2019
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