EXPLAINER: How online casinos hit the jackpot in the Philippines

MANILA, Philippines – China wants the Philippines to halt all online gambling operations, after linking the industry to crimes such as money laundering, kidnapping, and extortion.

The industry, run by Philippine offshore gaming operators (POGOs), has hit the jackpot in Manila and raked in billions of cash. The government was also able to collect billions, and is eyeing more. (READ: Online gambling: Good for whose business?)

POGOs, as well as their workers, seem to be in a bind. Gambling is perfectly legal in the Philippines, but is being aggressively taken down by China. (READ: [ANALYSIS] Duterte and the POGO dilemma)

Will President Rodrigo Duterte heed Beijing's call to stop POGOs? How did the industry even prosper to the point that China had to issue a strongly worded statement?

Watch this video explainer. – Rappler.com