Online Gambling Rules Face Overhaul, Not Ban
Finance Chief Confirms Review Amid Revenue Push
New regulations for the online gambling sector are still under consideration, according to Finance Secretary **Ralph Recto**, explaining its absence from President **Ferdinand Marcos Jr.**’s recent State of the Nation Address.
Tightening Grip on Digital Wagers
Discussions are ongoing regarding enhanced oversight and potential revenue streams from online gambling. **Recto** indicated that new rules are anticipated, even as some voices advocate for a complete prohibition of the industry.
“It’s still being studied, and it wasn’t finalized before the SONA,” **Recto** told reporters. He clarified that any new measures would not be classified as taxes, as the Philippine Amusement and Gaming Corp. (Pagcor) already possesses the authority within its charter to implement them.
Revenue Generation Without an Outright Ban
The government is exploring avenues to increase revenue through stricter regulations rather than a total ban, which could inadvertently drive operations underground. Officials estimate that illegal gambling activities constitute about 60 percent of the industry, representing a significant loss of potential government income.
To bolster state coffers, proposals include increasing Pagcor fees and franchise charges. Additionally, the Bureau of Internal Revenue might impose further taxes. Broader regulatory measures could also mandate that licensed operators list on the Philippine Stock Exchange.
Currently, Pagcor collects approximately 30 percent of gross gaming revenues from licensed online operators. The BIR levies a 5-percent franchise tax on top of Pagcor’s 3-percent auditing fee.
A modest 10-percent hike in taxes or fees could potentially generate an additional P20 billion annually for the government.
As a point of comparison, the UK Gambling Commission reported that the total value of the regulated gambling market in Great Britain was £14.2 billion in the year to March 2023, highlighting the significant economic activity within the sector (Gambling Commission May 2023).
