By Kenneth Christiane L. Basilio, Reporter
The Philippines’ economic planning department on Wednesday said a total ban on online gambling would likely have minimal impact on the economy, as it backed moves to either shutter or tightly regulate the industry that has come under close scrutiny due to its social impact.
The Development of Economy, Planning and Development (DEPDev) estimates that the electronic gaming industry contributed P81.6 billion or 0.37% to real gross domestic product last year, according to a copy of its position paper submitted to a House of Representatives committee and obtained by BusinessWorld.
“Given its minimal contribution to the economy and vis-à-vis the significant social cost, we do support either its complete prohibition or stricter regulation,” Socioeconomic Planning Director Desiree Joy O. Narvaez told lawmakers at a congressional hearing.
Online gambling has emerged as a growing concern in the Philippines amid rising cases of addiction, prompting lawmakers to file multiple bills in Congress seeking to either ban or tighten its regulation.
President Ferdinand R. Marcos, Jr. has declared a law on online gambling a priority, while the Department of Finance (DoF) said in July that the government is considering tighter regulation of the industry, including the imposition of more taxes.
“Studies have found that people are more inclined to engage in online gambling due to its high accessibility, affordability, convenience, anonymity and the ability to participate in multiple gaming activities,” according to the DEPDev position paper signed by Socioeconomic Planning Secretary Arsenio M. Balisacan.
“In light of this, we support the need to regulate the online gambling platforms’ linkage to digital financial services,” it added.
The Philippine central bank in August ordered electronic wallets to drop their links that provide users with direct access to gaming or gambling websites.
The Finance department shared DEPDev’s position, expressing support for stricter regulation of the industry but stopped short of endorsing a total ban.
“The DoF recognizes the potential economic benefits arising from online gaming or electronic games… provided that the associated economic and social costs are mitigated through very stringent regulations,” Finance Director Maria Karla L. Espinosa told the hearing.
About 32 million Filipinos, or half of the country’s working-age population, are engaged in online gambling, from 469,000 in 2018, according to government data.
