Philippine Government Considers Stricter Regulations for Online Gambling

In a recent announcement, Finance Secretary Ralph Recto confirmed that proposals to tighten regulations on online gambling are still under review. This statement was made during a post-State of the Nation Address (SONA) forum on July 30, 2025, where Recto explained that the issue did not feature in President Ferdinand Marcos Jr.'s fourth SONA due to its ongoing assessment.

As the Philippines grapples with a burgeoning online gambling industry, which is reportedly dominated by illegal operations accounting for approximately 60% of the market, the government's approach is shifting towards increased regulation rather than an outright ban. Recto emphasized, “It’s still being studied, and it wasn’t finalized before the SONA. But clearly, there will be additional regulations and possibly new sources of revenue. However, this is not a tax measure because under Pagcor’s (Philippine Amusement and Gaming Corp.) charter, they already have the authority to implement it.”

Current regulations allow Pagcor to collect about 30% of its gross gaming revenues from licensed online operators, along with an additional 5% franchise tax levied by the Bureau of Internal Revenue (BIR) and a 3% auditing fee. While the government is exploring options such as increased fees for Pagcor and franchise charges, experts believe that a 10% increase in taxes or fees could potentially generate an additional ₱20 billion annually.

Dr. Emily Santos, an economist at the University of the Philippines and a consultant for the National Economic and Development Authority (NEDA), noted the significant revenue potential in regulating the online gambling sector. “The government must balance the need for revenue generation with the social implications of gambling addiction and illegal operations,” she stated in her 2023 analysis published in the Philippine Journal of Economic Policy.

Internationally, the Philippines is not alone in facing challenges related to online gambling. Countries like Australia and New Zealand have implemented strict regulations to mitigate associated risks, including gambling addiction. According to a 2024 report by the World Health Organization, regulatory frameworks in these countries have successfully reduced illegal gambling activities and enhanced consumer protection.

Critics of the government's approach argue that simply tightening regulations may not suffice to address the underlying issues of gambling addiction. “Without comprehensive support systems and public awareness campaigns, simply increasing fees will not resolve the problem,” cautioned Dr. Maria Lopez, a clinical psychologist specializing in addiction at Ateneo de Manila University.

The ongoing discourse around online gambling regulation highlights a critical juncture for the Philippine government, which must navigate the complex interplay between economic benefits and social responsibility. As Recto indicated, the government is actively considering a range of regulatory measures, including requiring licensed operators to list on the Philippine Stock Exchange, which could enhance transparency and accountability within the industry.

As the situation develops, stakeholders from various sectors await the government's next steps, recognizing that effective regulation could transform the online gambling landscape in the Philippines and potentially serve as a model for other nations grappling with similar challenges.