New reforms could generate PHP 10B in revenue while increasing transparency and regulatory control
Push for Greater Accountability Through Public Listing
The Philippine government is considering a major reform that could reshape the online gambling industry: mandating all licensed operators to list on the Philippine Stock Exchange (PSE). The move, revealed by Finance Secretary Ralph Recto, is aimed at increasing transparency and oversight by exposing the financials and ownership structures of operators—currently obscured from public and regulatory scrutiny.
Public listing would compel gambling firms to adhere to regular disclosure requirements, including financial reports, beneficial ownership data, and corporate governance compliance. This initiative is aligned with the government’s broader effort to curb illicit activities in the online gambling sector, which has come under fire for links to money laundering and other criminal enterprises.
Higher Taxes Could Add PHP 10B in Annual Revenue
In tandem with the listing requirement, the government is reviewing a tax increase on online gambling operations. Officials believe that a 10% hike in taxes and licensing fees could generate up to PHP 10 billion ($170 million) annually for state coffers. Currently, operators contribute a 30% share to PAGCOR (Philippine Amusement and Gaming Corporation) and pay a 5% franchise tax to the Bureau of Internal Revenue.
This reform reflects growing fiscal pressure and the state’s desire to extract more value from a highly lucrative industry that has long operated in a semi-regulated grey area.
Industry Players React Amid Market Volatility
Key industry stakeholders are already feeling the impact of regulatory uncertainty. DigiPlus Interactive Corp, the company behind BingoPlus, ArenaPlus, and GameZone, has voiced support for enhanced regulation but suffered a 30% drop in share value in one day. Since its peak in June, DigiPlus has lost over 70% in market value—signaling deep investor concern.
Similarly, Bloomberry Resorts Corp, which launched its MegaFUNalo digital platform, saw its stock price decline by 5.6%. Analysts link the sell-off to anticipated policy shifts and concerns about future profitability under stricter rules.
Broader Regulatory Momentum Gathers Pace
This proposal is not isolated. It complements Senator Sherwin Gatchalian’s proposed bill to overhaul the industry and coincides with central bank initiatives to restrict e-wallet use for gambling. Regulators appear unified in their mission to introduce multi-layered controls—from financial disclosures to player protections.
As the industry awaits formal legislation, the message from Manila is clear: the era of loosely regulated online gambling may be nearing its end. The dual reforms of mandatory PSE listings and increased taxation mark a turning point for an industry at the center of the Philippines’ digital economy and regulatory evolution.
