By Aubrey Rose A. Inosante, Reporter
THE PHILIPPINES’ top economist on Wednesday backed a proposal to tax online gambling, but said the government’s economic planning agency has yet to study a total ban.
“We discussed that with the economic managers,” Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan told reporters on Wednesday. “I think at the very least, you can tax [it].”
“You can treat it like your cigarettes — impose taxes, but at the same time, make sure that it will not become a social menace, just like the POGOs (Philippine offshore gaming operators),” he added.
Finance Secretary Ralph G. Recto last week said the government is proposing an online gaming tax, alongside policy options to limit access to gambling platforms.
These may include restricting play time, limiting cash-ins, imposing age restrictions and requiring warnings on the dangers of gambling.
President Ferdinand R. Marcos, Jr. has also expressed support for taxing and regulating the industry to mitigate addiction-related harm.
Still, Mr. Balisacan said present laws might lack the infrastructure to support online gambling taxation.
“I was asking some of my colleagues, ‘Do we have the tools and the infrastructure to tax online gambling?’ And apparently, we still need a law,” he said. “That’s what we need to look at.”
Akbayan party-list group earlier filed a bill at the House of Representatives that seeks to impose a 10% levy on online gambling, with proceeds allocated to addiction treatment, recovery and public education.
Mr. Balisacan said the DEPDev has not made a formal position yet on whether a total ban is feasible.
“We have not been asked, but we also haven’t looked at the issues yet. But we would eventually, because it’s becoming a concern,” he added.
Meanwhile, Philippine Amusement and Gaming Corp. (PAGCOR) Chairman and Chief Executive Officer Alejandro H. Tengco said illegal gambling websites — not licensed operators — are the real threat to the industry.
“The problem of the industry today is not regulated online gamers or online companies, but the illegal [outfits] that have been proliferating all these years,” he told Morning Matters on One News.
PAGCOR monitored almost 11,000 illegal websites in the past two years, taking down about 76% or roughly 8,000 of them. Still, Mr. Tengco said enforcement is difficult due to the internet-based nature of the platforms.
“Because this is internet-based, it is very difficult to cancel or stop them in one blow,” he said. “So that really is the main problem we are trying to address with all our best efforts.”
Mr. Tengco said PAGCOR supports Senator Sherwin T. Gatchalian’s bill seeking tighter regulation through minimum deposit and bet limits. He separately told DZMM radio on Tuesday a total ban on e-gaming is ill-advised, adding that regulation is the better path.
PAGCOR is also planning to launch a 24/7 counseling hotline to support those struggling with gambling addiction.
Analysts and advocates warned that a sweeping ban could lead to underground operations that are harder to regulate.
“If a total ban is pursued, it must be accompanied by strong enforcement mechanisms, public education, and transition support for displaced workers and businesses,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.
He said safeguards remain inadequate to protect vulnerable groups from financial distress, addiction and associated crimes.
Digital Pinoys national campaigner Ronald B. Gustilo said a more practical approach is stricter regulation instead of prohibition.
“The experiences with POGOs and e-sabong (e-cockfighting) have shown that prohibition often drives operators underground, making the industry harder to monitor and control,” he said via Viber.
He urged the government to focus on restricting access to gambling content, including banning advertisements on social media, digital wallets and other platforms.
“Ultimately, we must strike a balance between public welfare, the regulated presence of both online and in-person gambling and the need to curb its harmful effects,” he added.
