True cost of online gambling

The rapid rise of online gambling in the Philippines is no longer a cultural or technological trend; it is an economic and social phenomenon with immeasurable consequences. Recent government data show that the industry’s financial contribution is marginal, while its social cost is rapidly escalating.

The Department of Economy, Planning and Development (DEPDev) reports that the electronic gaming sector contributed P81.6 billion to the Philippine economy in 2024. In real terms, this is 0.37 percent of GDP. In comparison, agriculture accounts for over nine percent, and manufacturing for roughly 15.7 percent.

Electronic gaming, therefore, is not a growth driver. It is statistically insignificant in the broader macroeconomic picture. Yet, its footprint in society is anything but small.

Data from the Philippine Amusement and Gaming Corporation (PAGCOR) show that 32.1-million adult Filipinos, nearly half of the country’s 60-million adult population, now participate in electronic gambling. In 2018, the figure was only 469,000. That is an increase of 6,742 percent in seven years. No other consumer behavior in the country has grown at this pace within such a short period.

Survey data further illustrate the depth of this trend. A 2023 Capstone-Intel nationwide study found:

a) 66 percent of Filipinos aged 18–24 gamble online;

b) 57 percent of those aged 41–55 do so regularly, averaging two to three times per week;

c) 70 percent of respondents spend around P1,000 per week on online betting;

d) 20 percent spend up to P3,000 per week on online betting.

To put these figures into context, wagering P1,000 weekly is equivalent to two days’ minimum wage in Metro Manila. A P3,000 weekly habit represents roughly 40 percent of the monthly income of a minimum-wage earner. These amounts are not recreational expenses; they are significant budgetary outflows.

The economic implications are immediate. Online gambling diverts household spending away from essential goods such as food, utilities, transportation, and education. For low-income families, the effect is amplified. As lawmakers have noted, individuals often turn to short-term digital loans to sustain their gambling, creating cycles of debt characterized by high interest rates and recurring late fees.

On a national scale, the question becomes how much the government actually gains from an industry that encourages such widespread consumption of personal savings?

If electronic gaming contributes 0.37 percent to GDP but drains household disposable income, increases borrowing, and reduces long-term financial stability, it is reasonable to conclude that the net economic effect is negative.

The social indicators reinforce this conclusion. Over the past three years, social workers, financial counselors, and mental health professionals have all reported increases in cases linked to gambling-related financial stress, ranging from family conflict to deteriorating mental health and, in severe situations, suicide attempts. While these outcomes are harder to quantify, the cost to public health and social welfare systems is substantial.

Any revenue from online gambling, however framed, is overshadowed by these immeasurable consequences. When an industry produces negligible economic gains but contributes heavily to household debt, reduced productivity, and family instability, its overall value to national development becomes questionable.

The Philippines now faces a policy choice. We can continue treating online gambling as a source of easy revenue, or we can acknowledge that its macroeconomic contribution is minimal while its negative externalities are large and accelerating.

Policymaking must shift from revenue maximization to damage mitigation, with the goal of protecting Filipino households from further financial vulnerability.

Economic growth is meaningful only when it strengthens families and communities. At present, online gambling does the opposite. If the house always wins, then by definition, millions of Filipino families must lose. And that is not an equation any serious nation can afford to ignore.