WITH VIDEO | Pagcor Opposes Total Ban, Favors Stricter Online Gambling Regulation

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 on Tuesday, July 8, 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.

Don’t ban?

Negros Occidental Rep. Javier Miguel Benitez – whose father engages in the online gaming business – is opposing a total online gambling ban in the Philippines.

“The reality is simple: gambling is here to stay. The only question is whether we want it safely regulated and benefiting our communities or dangerously unregulated and controlled by criminals,” Benitez said.

His father, Bacolod Rep. Alfredo Abelardo Benitez, is reportedly a founder and former majority stockholder of gaming firm DigiPlus, formerly known as Leisure and Resorts World Corp.

DigiPlus reported paying P33.7 billion in taxes, the younger Benitez said.

Regulated online gambling contributes over P200 billion annually to the Philippine economy, he noted.

“That money doesn’t vanish. It goes directly into hospitals, schools, infrastructure projects, community programs and social services that improve our daily lives,” he said.

Banning online gambling would not eliminate the activity as it would flourish illegally underground, he argued.

Online 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 safe-guards.

Senate inquiry

Sen. JV Ejercito has filed a resolution calling for an inquiry into the rapid proliferation of online gam-bling in the Philippines, warning that it is now a more pressing threat than Philippine offshore gaming operators.

A Senate panel would probe the surge of online gambling platforms and their integration into e-wallets and mobile lending apps that made gam-bling more accessible to Filipinos, including minors.

Branding e-wallet services such as GCash as “enablers” of widespread online gambling, Ejercito pro-posed banning e-wallets that serve as conduits to make gambling accessible.

Free access

Rizal Rep. Emigdio Tanjuatco III has filed a bill that would institutionalize free data access to mobile banking and e-wallet services nationwide.

Users will not incur data charges when using mobile banking and e-wallet applications, if House Bill 969 or the “Free Access to Digital Financial Services Act” is passed.

“This bill recognizes that access to financial services is no longer a luxury, but a basic need. By removing the cost barrier to data, we are enabling every Fili-pino – regardless of income or geography – to take part in the digital economy and access vital government and financial services,” Tanjuatco said.

New virus

Online gambling is a new “virus” destroying people, families and communities, the Catholic Bishops’ Conference of the Philippines (CBCP) said on Tuesday.

“It is clear that online gambling is not just a simple form of recreation. It is a deep and widespread mor-al problem that hides behind the pretense of entertainment and technology… The greed for online gambling is a form of slavery,” the CBCP said. — With Marco Luis Beech, Neil Jayson Servallos, Jose Rodel Clapano, Gilbert Bayoran, Evelyn Macairan