The Philippines' licensed online gaming operators are backing Philippine Amusement and Gaming Corporation (PAGCOR) and forward-thinking lawmakers in the call to embrace robust regulation instead of a total ban on online gaming, warning that prohibition would push players into an unregulated black market and jeopardize significant economic contributions.

In a statement released by 14 licensed gaming operators, the industry cautioned that ongoing congressional debates about outlawing online gaming or restricting payment channels could have severe consequences.

"Prohibition does not erase online gaming. It only loses the safeguards that protect the Filipino people," the statement said. "The reality is clear -- players will continue to play. The choice is whether they do so on secure, licensed platforms that follow regulations, or on black-market sites that answer to no one."

The licensed online gaming sector in the Philippines highlighted its current stringent protections, including strict Know-Your-Customer (KYC) protocols, multi-factor authentication, cross-referencing players against PAGCOR’s National Database of Restricted Persons, a strict age limit of 21, self-exclusion tools, real-time monitoring for at-risk behavior and advertising restrictions.

Operators stressed that every peso wagered on a licensed platform directly supports public services and bolsters player safety through regulation. Conversely, they argue that money spent on illegal sites is diverted from communities and channeled to illicit operators who disregard Philippine laws.

The industry pointed to international examples, noting that 177 out of 195 countries worldwide regulate online gaming, while only 18, including North Korea, Iran, and Somalia, maintain total bans.

None of these bans have successfully eradicated underground gaming.

In the United States, a 2006 federal ban on online gaming led to players flocking to unregulated offshore sites. By 2013, the U.S. began re-legalizing online gaming, subsequently generating over $71.9 billion in revenues and more than $15 billion in taxes. Countries like Sweden, Brazil, Colombia, and Argentina have observed similar patterns, with regulation proving more effective than prohibition in controlling the industry.

Domestically, the operators cited significant contributions to the Philippine economy. Since regulated online gaming expanded in 2022, PAGCOR’s license fee collections have surged from $12.3 billion to $54 billion in 2024. PAGCOR's total revenues reached $112 billion last year, with online gaming contributing nearly half.

The sector also employs over 50,000 Filipinos in high-value roles across technology, cybersecurity, creative design and artificial intelligence.

Licensed operators warned that a ban or severing legitimate payment channels would lead to massive job losses and cede the entire market to illegal sites, where players would lose all protections, including age checks, data security, and support for problem gambling.

Instead of bans, the industry is urging lawmakers to reinforce existing measures, including tighter age and identity verification, clear limits for at-risk players, stronger anti-money laundering safeguards, faster site takedowns for illegal operators and expanded public education on player rights and responsible play.

"Let’s be clear: the real enemy is not regulated gaming. It is the rise of illegal operators who put profits over Filipino welfare," the operators stated. "Legal operators do not fear tougher rules, they welcome them. What they fear is surrendering our digital future to the black market."

The operators reaffirmed their commitment to collaborate with the government, regulators, and communities to ensure online gaming remains secure, transparent, and a source of national benefit.

The statement was signed by World Platinum Technologies Inc., AB Leisure Exponent, Inc., Total Gamezone Xtreme, Inc., Gamemaster Integrated, Inc., Lucky Taya Gaming Corp., Stotsenberg Leisure Park & Hotel Corporation, Igo Digital High Technology Inc., Megabet Corp., Gavin Ventures Inc., Gotech Entertainment Inc., Meta Interactive Software Solutions, Inc., Nextstage Entertainment Inc., Webzoid System Solutions Corporation and Trojan Wells Entertainment Corp.