Philippine president orders shutdown of Chinese-run online gaming industry that employs thousands

MANILA, Philippines (AP) — Philippine President Ferdinand Marcos Jr. on Monday ordered an immediate ban on large-scale online gambling operations, mostly run by Chinese nationals, accusing them of engaging in crimes including financial fraud, human trafficking, torture, kidnapping and murder.

His decision to ban Chinese-run online gambling companies – which number more than 400 in the Philippines and employ tens of thousands of Chinese and Southeast Asian nationals – came as part of a Beijing-backed crackdown.

This has led to the closure of several sprawling complexes where authorities suspect thousands of Chinese, Vietnamese and other nationals, mainly from Southeast Asia, were illegally recruited and forced to work in deplorable conditions.

Marcos announced the decision during his State of the Nation address, during which he also said the Philippines would continue its efforts to strengthen its defensive capability by forging security alliances with friendly countries to counter threats to its territorial interests in the South China Sea, adding that his country would only resolve disputes through diplomacy.

The Philippines has a complex relationship with China, including significant trade and cooperation on crime fighting. But it is also embroiled in long-running disputes in the South China Sea.

In related news, Philippine senators have ordered the arrest of a mayor in Tarlac province, north of Manila, who failed to appear at public hearings where allegations against her were being investigated, including her alleged ties to a large online gambling complex near her city hall and suspicions that she fraudulently concealed her Chinese nationality to be able to run for a Filipino-only public office.

Mayor Alice Guo has denied wrongdoing but has been suspended from office and her financial assets frozen. Philippine senators say the online gambling industry has thrived largely on corrupt regulatory agencies and bribes to local officials.

“Under the guise of legitimate entities, their operations have ventured into illicit areas far removed from gambling, such as financial fraud, money laundering, prostitution, human trafficking, kidnapping, brutal torture, and even murder,” Marcos said in his speech. “The gross abuses and disrespect for our system of laws must stop.”

Marcos ordered the gaming agency to shut down gaming establishments by the end of the year, drawing loud cheers in the House of Representatives. He asked labor officials to find alternative jobs for Filipino workers who would be laid off due to the shutdown.

In laying out his vision for the coming year, Marcos outlined measures to address a range of problems, including soaring food and electricity costs, poverty and low wages.

His administration’s “bloodless war” against dangerous drugs was never aimed at “extermination,” Marcos said, sharply criticizing his predecessor’s brutal crackdown on drugs that left thousands of mostly innocent suspects dead.

The International Criminal Court (ICC) is investigating drug-related killings committed under former President Rodrigo Duterte, which may constitute crimes against humanity. President Rodrigo Duterte has denied authorizing extrajudicial killings.

Regarding the increasingly hostile conflicts between Manila and Beijing, Marcos stressed that the Philippines would not back down but would only resort to peaceful means to resolve any dispute.

“The West Philippine Sea is not just a figment of our imagination. It belongs to us,” Marcos said, using the Philippine name for the part of the South China Sea claimed by Manila.

“In the face of challenges to our territorial sovereignty, we will assert our rights and interests in the same just and peaceful manner as we have always done,” Marcos said. “Appropriate diplomatic channels and mechanisms within the rules-based international order remain the only acceptable means to resolve disputes.”

Recent clashes on Second Thomas Shoal and in surrounding waters have raised fears of a broader conflict that could involve the United States, a longtime treaty ally of the Philippines.

In the worst confrontation, Chinese forces on motorboats repeatedly rammed and then boarded two Philippine navy boats on June 17 to prevent Filipino personnel from transferring food and other supplies, including firearms, to the ship’s outpost in shallow waters off the shoal, according to the Philippine government.

The Chinese took control of the Philippine Navy boats and damaged them with machetes and improvised spears. The violent confrontation left several Philippine Navy personnel injured in a chaotic skirmish.

The Philippine government announced Sunday that it had reached an agreement with China in hopes of ending the fighting over Second Thomas Reef. Neither side has released the text of the agreement.

___

Associated Press writer Joeal Calupitan in Manila contributed to this report.