In video carrera, players bet P1 to P100 on a horse race featured in the video games and could win as much as P1,000.
City Police Chief Catalino Cuy said police found the machines abandoned or traced to "fictitious" individuals in seven areas in the city.
Cuy said cases had been filed against video carrera operators nabbed by the police but clarified that the machines burned were the abandoned ones.
He said many of the machines were placed inside houses and stores and that many removed the computer boards from the machines so police could only get the casing.
Duterte warned police commanders of immediate relief and possible dismissal if video machines used for gambling are reported in their areas. Duterte said he received reports that some of the confiscated video carrera machines belonged to some policemen.
Duterte said he understands some policemen engage in income-earning activities "but not at the expense of your jobs.”
He warned against police involvement in illegal video gambling, citing a newspaper cartoon that featured policemen dancing gleefully with criminals.
"Let this be the last. I am warning you. Beginning today stop the video carrera activities," he said.
Calinan police chief inspector Dionisio Abude said they sequestered two video machines earlier and burned them. He said cooperation from the public could hasten their campaign against illegal gambling.