Online Gambling Regulations under ⁣review, Finance Secretary Confirms

MANILA, ‍Philippines – proposed⁤ measures to strengthen oversight of the online gambling sector are still undergoing thorough ⁤examination, according to Finance Secretary Ralph Recto. This ongoing review, he explained, is the reason why the issue was not prominently featured in President Ferdinand marcos Jr.’s⁤ recent fourth State of the Nation Address (SONA).Speaking to reporters on the sidelines of ⁢a post-SONA forum, Recto indicated that the public can anticipate the ⁤implementation of⁢ new rules governing online gambling, a move that comes amid growing calls for a complete prohibition of the industry.

“It’s still being studied,⁣ and it wasn’t finalized before the SONA,” Recto stated.He elaborated that the government is looking at introducing additional regulations ⁣and potentially identifying new⁤ revenue streams from the sector. Importantly, he clarified that these changes would not be classified as tax measures, as the Philippine Amusement and Gaming Corporation (Pagcor)‍ already possesses the authority under its charter to implement such measures.

Recto had previously indicated that the management was exploring ⁤options to increase ⁢taxes and tighten regulations on⁣ online gambling, rather than pursuing an outright ban. The rationale behind this approach is to avoid driving the sector further underground, where it becomes more difficult to monitor‍ and regulate. Officials have highlighted that illegal operations currently account for approximately 60 percent of the industry, representing a⁣ significant loss of ⁣potential ⁣government revenue.

Among the various proposals being considered are an increase in Pagcor fees and franchise charges, the imposition of additional taxes by the Bureau of Internal Revenue (BIR), and broader regulatory requirements, such as mandating licensed operators to list‍ their shares on the Philippine Stock Exchange.

Currently, Pagcor collects about 30 percent of its ⁢gross gaming revenues from licensed online operators. The BIR‍ adds a 5-percent franchise tax, and Pagcor also levies a 3-percent auditing fee. Recto ⁢suggested that a modest 10-percent increase in ⁤these taxes⁢ or fees could potentially generate an additional P20 billion annually for the government.