Why PAGCOR rejects total ban, favors stricter online gambling rules

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MANILA, Philippines — The Philippine Amusement and Gaming Corp. (PAGCOR) said it does not support a total ban on online gambling but backs stricter regulation, as lawmakers file bills seeking tighter controls or prohibition.

PAGCOR Chair and CEO Alejandro Tengco argued that a ban on online gambling would neither curb addiction nor halt its growth, and said tighter regulation would at least allow the agency to exercise oversight.

“Regulation is the key and the answer, and not total ban. Sapagkat 'pag tinotal ban mo ‘yan, mas mabibigatan at magkakaproblema ang ating mga kababayan sapagkat wala nang kontrol. Wala nang regulasyon lalong maagrabyado ang ating kapwang Pilipino,” he told DZMM on Tuesday, July 8.

(Regulation is the key and the answer, not a total ban. Because if you implement a total ban, our fellow Filipinos will face greater burdens and problems. There will be no control, no regulation, and our fellow Filipinos will be even more disadvantaged.)

Tengco also said that while online gambling is still relatively new, it now accounts for up to half of the gambling industry.

“Online gaming is in its birth pains, bago pa lang po ito, unfortunately, because of the advances of technology, wala na po tayo magagawa,” he added. 

(Online gaming is in its birth pains, but this is still new, unfortunately, because of the advances of technology, we could not do anything about it.)

Why PAGCOR's against a total ban

PAGCOR believes the real threat comes from illegal foreign-based operators trying to infiltrate the Philippine market and take advantage of Filipino players — not from online gambling itself.

“Pero gusto kong bigyan ng pansin at diin ang nakasisira sa industriya ngayon ay yung iligal na operator na patuloy na malakas at tinataguyod ng ating kababayan,” Tengco said, pointing out that these operators violate rules and let minors bet.

(But I want to highlight and emphasize that what’s harming the industry now are the illegal operators who remain strong and are being supported by our fellow Filipinos.)

Tengco also explained that the government earns billions from gambling operations each year primarily through license fees. In 2024 alone, he said the agency earned more than P50 billion from operators’ license fees.

This figure, he said, does not include the taxes paid separately by gambling operators to the Bureau of Internal Revenue (BIR). He cited, for example, that the country’s largest licensed online gaming firm had paid an estimated P30 to P40 billion in taxes.

Tengco warned that a total ban on online gambling would also have ripple effects on related industries — such as security, transport and food services — which rely on the sector for jobs.

“Kaya ang epekto po nito talaga ay P100 billion sa ating bansa ang ating kita na posibleng mawala kung maisasabatas ang total ban,” Tengco added. 

(This is why the effect would be a P100 billion loss for the country should a total ban be legislated.)

How PAGCOR plans to regulate

To keep up with the digital shift in gambling, Tengco said PAGCOR is exploring AI-driven solutions, such as tools that identify fake IDs and offer users the ability to self-restrict. 

Other regulations they seek to explore include loss-based betting pauses, round-the-clock counseling hotlines and partnerships with rehabilitation centers and foundations.

“Mayroon na ‘yung tie up na ginagawa ang PAGCOR kung saan we are tying up with a foundation na nakakaintindi ng gambling addiction at doon may mga proposal na pinag-aaralan at finafinalize sa pangkasalukuyan,” Tengco said. 

(PAGCOR is already working on a partnership with a foundation that understands gambling addiction, and proposals related to this are currently being studied and finalized.)

PAGCOR’s ongoing policy considerations align with a bill filed by Akbayan Party-list. However, the measure also proposes a 10% tax on online gambling operators to support public health efforts addressing gambling addiction under a whole-of-government strategy. 

Tengco also backs separate Senate proposals to impose deposit or betting limits to protect financially vulnerable individuals. 

PAGCOR reported a gross gaming revenue of P410 billion in 2024, wherein 38% was contributed by online gaming. The agency also projects earnings of up to P480 billion in 2025.

RELATED: Bill eyes 10% online gambling tax to fund rehab, ban e-wallet links

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