Government seeks to balance regulation with market stability
Presidential Concerns Drive Reform Discussions
The Philippine Government is considering new regulatory measures to strengthen oversight of the rapidly expanding online gambling sector. The move follows concerns raised by lawmakers and industry observers after the topic was notably absent from President Ferdinand Marcos Jr’s State of the Nation Address.
Finance Secretary Ralph Recto confirmed that the President is aware of the risks posed by unregulated online gaming, prompting an internal review of policies to ensure a more controlled and transparent environment.
Higher Fees and Stricter Oversight on the Table
One of the key proposals under review is a hike in operator licence fees. Currently, online gambling platforms and integrated resorts pay 25% of their gross gaming revenue to the Philippine Amusement and Gaming Corporation (PAGCOR). The government is studying a possible increase to 30% or more, aiming to boost public revenues while curbing illegal operations.
Officials are also considering:
Higher minimum deposits for online players,
Restrictions on mobile wallet links to gambling platforms,
Time limits on wagering sessions to prevent excessive gambling.
These measures, if implemented, would expand PAGCOR’s oversight while reinforcing consumer protection mechanisms.
Illegal Market Remains a Major Challenge
Despite its regulated framework, the Philippines faces a significant illegal gambling problem. Recto estimated that 60% of online gambling activity currently operates outside legal boundaries.
He cautioned against an outright ban, stating:
“If we ban it entirely, 100% may become illegal.”
This stance highlights the delicate balance policymakers must strike between enforcing regulations and avoiding the growth of a shadow market.
Economic Stakes: PHP 200bn in Revenue
The Department of Finance projects PHP 200 billion ($3.45 billion) in gambling-related revenues for 2025, with online gambling expected to play a critical role in future growth. This underscores why the government is keen on regulation rather than prohibition.
Outlook: Regulatory Reform on the Horizon
The ongoing discussions involve both PAGCOR and the Bangko Sentral ng Pilipinas (BSP), with reforms potentially enforceable without congressional intervention.
As the Philippine market continues to evolve, these changes could set the stage for a more secure and sustainable online gambling industry, balancing revenue generation with responsible gaming practices.
