Regulation Preferred Over Prohibition
The Philippine Amusement and Gaming Corporation (PAGCOR) has rejected proposals for a complete prohibition of online gambling in the Philippines, arguing that stricter regulations rather than an outright ban would better serve the country’s interests while preserving substantial government revenue and employment opportunities.
PAGCOR Chair and Chief Executive Officer Alejandro H. Tengco emphasized during a DZMM interview on Tuesday that regulation remains the key to addressing problems within the gaming industry.
Revenue and Employment Impact
The corporation’s position comes in response to recent legislative proposals, including Senator Juan Miguel Zubiri’s bill seeking a total ban on all online gambling activities and Senator Sherwin Gatchalian’s measure to prohibit e-wallet usage in online gambling platforms.
The government currently generates more than PHP100 billion ($1.8 billion) annually from online gambling operations, both directly and indirectly, according to Tengco. This revenue stream supports approximately 32,000 direct employees within the industry, alongside numerous ancillary businesses including security services, transportation companies, restaurants, and other support services that cater to online gaming operations.
Tengco warned that implementing a total ban could result in the loss of hundreds of billions of pesos in revenue for the country. He highlighted Senator Gatchalian’s support for stricter regulation as a viable alternative that would allow the industry to continue operating under proper oversight while maintaining government revenue streams.
Concerns About Illegal Operators
The PAGCOR chief identified illegal online gambling operations originating from foreign countries as the primary source of chaos within the gaming industry. These unauthorized operators, which target Filipino customers, currently represent 50 to 55 percent of the entire online gaming market that remains beyond PAGCOR’s regulatory reach.
Unlike regulated platforms that restrict access to players aged 21 and above, illegal operators impose no age restrictions, allowing minors to participate and potentially develop gambling addictions. Tengco noted that PAGCOR regularly receives complaints from players of illegal gambling sites who have not received their winnings or deposits.
New Measures to Protect Consumers
To address gambling addiction concerns, PAGCOR plans to establish a 24-hour hotline within the coming months, partnering with specialized foundations and rehabilitation centers. The corporation is also developing artificial intelligence-powered monitoring systems, including self-exclusion buttons and cooling-off periods for players who experience significant losses.
Advertising Controls Under Consideration
Additionally, PAGCOR is coordinating with the Ad Standards Council to regulate outdoor gambling advertisements and restrict primetime television advertising for online gaming licenses. The corporation aims to sign a Memorandum of Agreement within a week to control the proliferation of large gambling billboards across the country.
Presidential Review and Enforcement Efforts
Meanwhile, President Ferdinand Marcos Jr. is exploring better policy options for online gambling, acknowledging the concerns of families affected by gambling addiction.
According to the Philippine News Agency, Palace Press Officer Claire Castro stated that the President sympathizes with families whose household members have become addicted to gambling and is working toward improved policies for the sector.
The President has expressed openness to the Department of Finance’s proposal to regulate and impose taxes on online gaming platforms. The Department of Information and Communications Technology has collaborated with PAGCOR to remove 7,000 unauthorized online gaming sites, according to data released by Malacañang on June 19th.
The Palace encourages the public to report individuals showing signs of gambling addiction to PAGCOR, enabling the corporation to restrict their access to online gaming platforms.
