POGOs, or Philippines offshore gaming operators, continue to find themselves struggling in an environment that is becoming stricter. Tax authorities have been cracking down on the operations, ensuring that they give up their proper share to the government, and Makati City is now taking the extreme measure of suspending any new licenses or permits. The move comes following an alleged increase in crime, including prostitution, committed by the companies.

Makati’s mayor, Abby Binay, issued a statement December 8 about the policy change, explaining, “We would no longer accept new applications for Pogo service providers, and crack down hard against illegal activities that are catering to Pogos and their employees within Makati.”

The change also follows a trend that saw POGOs as a major source of real estate growth in the country. However, there is concern that the only outcome, were the sector to be allowed to continue to grow, would be a bubble that could burst at any time. Many POGOs have been employing Chinese workers, leading to an increase in demand for business space and housing, forcing prices to skyrocket. In the long run, though, this won’t last, and Binay adds, “This puts the local property sector at risk of overheating, where its growth becomes unsustainable.”

Makati has shut down four illegal POGO service providers, two brothels that hosted prostitution dens and a restaurant that was violating local codes. The influx of Chinese has overwhelmed the city, and others in the region, leading to what city officials say are unsafe living conditions, uncontrollable crime and no adequately-priced housing.