BIR: Online gambling ban may jeopardize revenue target

Bureau of Internal Revenue (BIR) commissioner Romeo Lumagui Jr. warned that a proposed total ban on online gambling could put the government's P3.2-trillion revenue goal for the year at risk.

Lumagui said that a ban on internet gaming and other online gambling platforms would force the BIR to recalibrate its fiscal outlook.

He also stressed the gaming sector is a significant contributor to the national treasury.

The commissioner's remarks come amid renewed calls from lawmakers and civil society groups for a complete ban on e-gambling, citing alleged links to criminality, addiction and social disruption.

The BIR has collected P1.5 trillion in the first half of 2025, which is 0.5% higher than its midyear target.

Lumagui said the agency is currently on track to meet its goal, but he clarified that removing a substantial source of revenue mid-year could create a serious gap in collections.

He noted the government relies on tax receipts to fund vital public services.

Congress is currently deliberating on several competing bills. Some propose stricter regulations and a 10 percent gambling tax to fund mental health and rehabilitation services, while others advocate for an outright ban on all online gambling operations.

The Marcos administration has remained noncommittal, with officials stating the matter is under comprehensive review and a decision will be made after a careful assessment of economic and social impacts.

Industry stakeholders have voiced concerns over the potential loss of tens of thousands of jobs and the migration of users to unregulated platforms if a ban is imposed without sufficient transition measures.

Lumagui urged policymakers to consider the revenue implications and the need to balance moral concerns with economic realities, particularly as the country's post-pandemic economy continues to recover from fiscal strain.

The BIR reiterated its commitment to tax compliance and revenue efficiency but noted that stability in major tax-contributing sectors will be critical to meeting the agency’s year-end target.