The recent opinion issued by the Department of Justice (DOJ) regarding the Commission on Audit's (COA) jurisdiction to review the gross gaming receipts (GGR) of Philippine Offshore Gaming Operators (POGOs) has raised significant implications for the POGO sector and its potential return in the Bay Area of Metro Manila. This article explores the potential effects of COA's involvement on the Manila Bay Area's real estate sector, particularly in terms of commercial and residential properties for POGO offices and staff.

1. Strengthening Financial Accountability: The DOJ's opinion reaffirms COA's role as a watchdog for government financial operations. With COA gaining the authority to audit POGOs' GGR, the financial accountability of the POGO sector is expected to improve. By ensuring proper taxation and regulatory fees, COA's involvement can prevent potential government revenue loss, thereby enhancing the overall economic stability of the country.

2. Impact on POGO Sector's Potential Return: The POGO sector faced significant challenges in the past due to concerns related to tax compliance and regulatory issues. COA's involvement in auditing POGOs' GGR adds an additional layer of scrutiny to their operations, potentially increasing transparency and trust. This increased oversight could contribute to the sector's potential return, as it offers a sense of reassurance to both investors and the government that POGOs are operating in accordance with the law. The likelihood of the POGO sector making a comeback in the Bay Area of Metro Manila may be positively influenced by this enhanced regulatory framework.

3. Commercial Real Estate Impact: The POGO sector's potential return and COA's jurisdiction to audit their operations can have both direct and indirect effects on the commercial real estate market in the Manila Bay Area. In the past, POGOs were known to lease large office spaces to accommodate their operations and staff. If the sector witnesses a resurgence, it may lead to increased demand for commercial office spaces in the Bay Area. Real estate developers and investors could seize this opportunity to cater to the needs of POGOs, potentially driving up rental rates and bolstering property investments in the area.

4. Residential Real Estate Impact: The POGO sector's return also has implications for residential real estate in the Bay Area. POGO staff members require housing near their workplaces, which creates demand for residential properties in the vicinity. The potential resurgence of the POGO sector could result in an increased need for rental properties or the purchase of condominium units by POGO employees. This could lead to a rise in property values and rental rates in the surrounding residential market.

The DOJ's opinion granting COA the authority to audit POGOs' GGR has significant implications for the potential return of the POGO sector in the Manila Bay Area. COA's involvement strengthens financial accountability and regulatory oversight, which could contribute to the sector's resurgence. The impact on the real estate sector in the Bay Area is expected to be positive, with potential growth in demand for both commercial office spaces and residential properties. As the situation develops and the Supreme Court case related to the issue progresses, it will be crucial to monitor how COA's involvement and the POGO sector's potential return shape the Manila Bay Area's real estate landscape.

BY: CJ MANALO
Marketing Executive, DRIVEN Marketing Group Inc.
0938 829 9733

Source: DOJ: COA can audit POGO receipts

CJ MANALO | 0938 829 9733