PAGCOR opposes total ban, favors stricter online gambling regulation

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Mark Ernest Villeza - The Philippine Star

July 9, 2025 | 12:00am

In an interview with “Storycon” on One News yesterday, PAGCOR chairman Alejandro Tengco said distinguishing legitimate online operators from illegal offshore groups that evade regulation and taxes and target Filipino users is important.

AFP / Marcus Erricson, File photo

MANILA, Philippines — Despite growing calls for a total online gaming ban, regulation is a more realistic and beneficial path than prohibition, according to the Philippine Amusement and Gaming Corp. (PAGCOR).

In an interview with “Storycon” on One News yesterday, PAGCOR chairman Alejandro Tengco said distinguishing legitimate online operators from illegal offshore groups that evade regulation and taxes and target Filipino users is important.

“We collected around P50 billion from online gaming operations in 2024,” Tengco said, noting that half of the revenue directly funds social services, such as the Universal Health Care Act, Philippine Health Insurance Corp., Philippine Sports Commission and Dangerous Drugs Board.

“If properly regulated, online gaming can be a major contributor to government services and economic development,” he added.

Artificial intelligence tools to monitor and regulate the gambling behavior of online gamers are being explored by PAGCOR.

Tengco said they are investing in AI-powered systems that can track player activity, flag risky behavior and enforce self-exclusion when necessary.

“If you’re depositing more than usual or losing more than you win, your account may automatically be suspended,” Tengco said. 

“We’re also looking at AI-powered Know-Your-Client tools to ensure all registered users are 21 years old and above,” he added.

Canada and the United States are using these technologies that are being adopted locally amid the growth of the online gaming industry, he said.

On July 16, Tengco said PAGCOR will sign a deal with the Ad Standards Council to regulate outdoor and digital advertisements of online gaming operators.

“All online gambling ads, including billboards and primetime TV placements between 5:30 p.m. to 8:30 p.m., will now be covered under stricter guidelines,” he said.

PAGCOR is coordinating with the Department of Trade and Industry and National Telecommunications Commission to address complaints about casino gaming apps pre-installed on mobile phones and aggressive digital advertising targeting users, including minors.

A round-the-clock hotline will be launched by PAGCOR to provide counseling services to gambling addicts.

Online gambling tax

The Department of Finance (DOF) is finalizing its proposal to impose an online gambling tax in the Philippines.

“We will release the details of this proposed measure, supporting policy recommendations and other relevant information at the proper time,” Finance Undersecretary Maria Luwalhati Dorotan-Tiuseco said.

On July 3, the Bangko Sentral ng Pilipinas said it will issue a circular to protect consumers from the risks of online gambling by mandating banks and electronic money issuers to strengthen their safeguards. — Marco Luis Beech, Neil Jayson Servallos, Jose Rodel Clapano, Gilbert Bayoran, Evelyn Macairan

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