Former POGO Operators Shift To Sri Lanka

Former Philippine Offshore Gaming Operators (POGOs) and their employees are reportedly moving operations to Sri Lanka, where Colombo’s Port City Special Economic Zone has become a focus in discussions about the expansion of overseas-facing online gaming businesses.

An investigation by MonetaBrief found that some major online gaming groups operating in Sri Lanka appear to be connected to former POGO operators whose activities ended after the Philippines introduced a nationwide ban on the sector.

The report said recruiters have been searching for former gaming workers from the Philippines and other Asian countries, promoting Sri Lanka as a potential alternative location for online gaming companies. Advertisements have highlighted the Port City Special Economic Zone as a destination offering a more stable business environment.

Thousands of workers from China, the Philippines, Vietnam and Cambodia have reportedly relocated to Sri Lanka to work in online gaming operations targeting markets where gambling is restricted or prohibited. Some workers are reported to have entered or remained in the country without valid work permits.

Port City Becomes Focus Of Online Gaming Review

The investigation identified the Port City area and Board of Investment-approved business process outsourcing companies as possible locations connected with larger online gaming operations.

Some Sri Lankan BPO and IT firms are reportedly helping foreign companies establish operations and obtain residence visas and work permits. The report identified several Colombo districts, including Fort, Town Hall and Havelock City, as areas where online gaming-related businesses are located.

Recruitment campaigns have reportedly appeared on social media platforms such as Facebook, TikTok and Telegram. Some advertisements target former workers from countries affected by increased enforcement against online gaming and scam networks.

The Philippines previously became a major hub for offshore gaming operations, attracting thousands of workers to areas including Pasay, Makati and BGC. The government later banned POGO activities after concerns emerged over links to criminal activity.

The investigation noted that some former POGO groups shifted toward Sri Lanka after Philippine authorities closed operations connected with the sector.

Sri Lanka’s Deputy Minister for Digital Economy Eranga Weeraratne said planned gambling regulations would apply throughout the country, including the Port City Special Economic Zone. He added that authorities were discussing online gaming issues with relevant agencies and international partners.

“The international collaboration is building on this,” he said. “This does not affect a single country. It is a cross-border issue. Therefore, a knowledge-sharing network is now being developed.”

Authorities Address Cross-Border Risks

Sri Lanka introduced the Gambling Regulatory Authority Act on December 1, 2025, covering both physical and digital gambling activities. However, implementation of regulations has faced delays.

According to Asia Gaming Brief, the investigation said Sri Lankan authorities have already taken action against suspected cybercrime networks. More than 1,000 foreign nationals, mainly from China, Vietnam and India, have reportedly been arrested in connection with cybercrime-related activity since the beginning of 2026.

The report also identified KJC and P3Bet as large online gaming networks allegedly operating from Sri Lanka and targeting Vietnam. It stated that King Group, which faced enforcement action during a Vietnamese cybercrime investigation in July, had also recruited workers for Sri Lankan operations.

Vietnam has become one of the markets targeted by offshore gaming groups, while some operations have also focused on African countries such as Nigeria. The investigation said these businesses often target jurisdictions where certain forms of gambling remain illegal.

Officials have raised concerns that offshore operators can avoid regulatory requirements applied to licensed businesses, including consumer protection measures and responsible gambling controls.

Recruitment Offers Raise Further Questions

The investigation found that some recruitment advertisements promote monthly salaries between US$1,200 and US$2,000, along with commission payments and company-provided accommodation. Roles advertised include marketing, customer service, SEO and administrative positions.

Workers are reportedly offered payments in currencies including US dollars, yuan and cryptocurrency such as USDT. Some suppliers connected with these businesses have also reportedly been offered cryptocurrency payments.

The report said some companies appear to have Chinese ownership structures, while certain senior managers are Malaysian and handle communication with local authorities and businesses.

Sri Lanka is continuing discussions with other countries as governments across Asia attempt to address online gambling, cybercrime and related cross-border activity.

Deputy Minister Weeraratne said consultations were underway with countries including Thailand and Cambodia as part of wider cooperation efforts.