By Aubrey Rose A. Inosante and Revin Mikhael D. Ochave, Reporters
THE DEPARTMENT of Finance (DoF) is proposing a tax on online gaming, as well as studying potential policies to curb unrestricted access to gambling, including digital gambling platforms.
At the same time, the Bangko Sentral ng Pilipinas (BSP) is set to issue a circular that would require banks and e-wallets to protect their users from the growing risks of online gambling.
This comes as some lawmakers have filed measures seeking stricter regulation of online gambling amid reports of growing addiction among Filipinos.
Finance Secretary Ralph G. Recto told BusinessWorld in an e-mail that the department is “cognizant of the concerns of Filipinos regarding online gambling.”
“Given this, we are already studying and will propose an online gaming tax,” he said, without giving details.
“We are also studying other potential policy options to deter unimpeded and practically unrestricted access to gambling, particularly digital gambling platforms.”
Mr. Recto proposed implementing limits on playing time or cash-in to help prevent addiction, as well as displaying clear warnings about the risks of gambling. He also proposed a ban on government officials from participating in all types of gambling, including online gambling.
“However, a careful study must be done by regulatory authorities on the administrative feasibility of implementing these proposals, and other additional requirements that may be imposed to limit the potential harmful effects of gambling,” he said.
Mr. Recto said the DoF supports “strong safeguards” to regulate all forms of gambling in the country.
“In particular, we strongly support restricting access to gambling facilities to those who are at least of legal age. PAGCOR (Philippine Amusement and Gaming Corp.) already prohibits minors and financially vulnerable individuals from entering gaming venues,” he said.
Senator Sherwin T. Gatchalian earlier filed a bill that seeks to implement stricter regulations on online gambling, such as raising the minimum legal gambling age to 21 from 18, to protect young Filipinos from early exposure to online gambling.
Mr. Gatchalian’s bill also seeks to prohibit e-wallets from linking to gambling sites.
It also proposed to hike the minimum cash-in requirement for online gambling platforms to P10,000, while a P5,000 minimum top-up is required to discourage compulsive gamblers.
At the House of Representatives, a bill seeking to stop electronic wallet platforms from promoting gambling apps was also filed.
BSP CIRCULARIn a statement, the BSP said the circular would require BSP-supervised institutions (BSIs), primarily banks and electronic money issuers, to protect users from risks associated with online gambling.
“Protection may come in the form of various limits to gaming access,” it said, adding the draft circular is awaiting feedback from stakeholders.
“The BSP is taking a collaborative approach to crafting the circular, to ensure that the final policy strikes a balance between protecting consumers and preserving access to digital payments for licensed businesses,” it said.
The BSP had previously prohibited BSIs from dealing with unlicensed gambling operators, and ordered e-wallets and other BSIs to remove links to electronic sabong (e-sabong) from their platforms.
“This move by the BSP is a step in the right direction. Requiring banks and e-wallet providers to impose limits and safeguards will help shield vulnerable users, including young people and those in financially precarious situations, from the growing threat of online gambling,” Ronald B. Gustilo, national campaigner for Digital Pinoys said in a Viber message on Thursday.
However, Daesik Han, founder, chair and chief executive officer of Hann Group said stricter restrictions will slow the growth of the Philippine gaming industry.
“As a regulator, it is very reasonable for (the government) to come up with something stricter, like regulation, because there is some kind of negative side (of gambling) in society,” Mr. Han said on Money Talks with Cathy Yang on One News.
The PAGCOR in May reported its gross gaming revenue (GGR) rose by 27.44% to P104.12 billion in the first quarter, with electronic gaming out-earning physical casinos for the first time.
The electronic businesses generated P51.39 billion or 49.36% of GGR in the January-to-March period.
GAMING STOCKSMeanwhile, shares of DigiPlus Interactive Corp. and Bloomberry Resorts Corp. continued to slide on Thursday amid concerns over possible legislation to curtail online gaming.
Shares of Tanco-led DigiPlus fell by 13.89% to close at P38.75 apiece, while Razon-led Bloomberry dropped by 6% to close at P4.70 each.
DigiPlus is the company behind sports betting platform ArenaPlus, digital bingo platform BingoPlus, and online gaming platform GameZone.
On the other hand, Bloomberry launched its MegaFUNalo online gaming platform last month to compete against DigiPlus.
“The heightened regulatory risk has sparked a broad sell-off across the gaming sector, with DigiPlus seen as particularly vulnerable to potential restrictions given it is a leading digital gambling operator,” Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message.
“On July 3, DigiPlus’ stock plunged to its 30% daily limit amid a spike in trading volume, more than eight times the norm, following reports that the bill had progressed in Congress. Likewise, Bloomberry fell by 22% since its recent peak,” she added.
Ms. Estacio-Cruz said gaming stocks are projected to decline further amid uncertainties caused by the proposed stricter online gambling rules.
“For now, although the initial sell-off appears to be driven by sentiment, continued downward pressure is likely if regulatory risks intensify or remain unclear,” she said.
COL Financial Group, Inc. First Vice-President April Lynn C. Lee-Tan said in a Viber message that investors might stay on the sidelines until there’s further clarity on the bill’s progress.
“No one knows what the final version will be. The bill is definitely scary for them (gaming companies) because it will make it difficult for the poor to continue playing,” she said.
Meanwhile, DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin said a relief rally is expected as there’s no finality yet regarding the details of the bill.
“While the bill could hurt growth if passed, it remains pending — prompting a strong relief rally. The market now awaits further clarity on whether the bill gets passed or not,” he said in a Viber message.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the steep decline in gaming stocks is only transitory.
“Our expectation is that any final legislation will promote and enhance responsible online gaming given the significant revenue contribution to the government,” he said in a Viber message.
