The Philippine Amusement and Gaming Corporation (PAGCOR) on Tuesday voiced strong opposition to a proposed total ban on online gambling, warning that outlawing the entire industry could cost the government hundreds of billions of pesos in lost revenue.
PAGCOR chairman and CEO Alejandro Tengco issued the warning amid growing support in Congress for a bill filed by Manila Rep. Rolando Valeriano that seeks an outright prohibition of all forms of internet gambling—including digital casinos, e-sabong (cockfighting), and the already-banned Philippine Offshore Gaming Operators (POGO).
Valeriano said Tuesday he is confident of rallying majority support in the House for the bill, setting the stage for its early transmission to the Senate, where a similar measure has already been filed by Senator Juan Miguel Zubiri.
“The problem here is not just about the missing sabungeros,” Valeriano said. “During the time that e-sabong was still in operation, we all witnessed its social costs—some people even took their lives, while some sold their personal belongings.”
Tengco, however, argued that eradicating online gambling is not only difficult but potentially self-defeating.
With advanced technology, he said, authorities are only able to monitor 45 to 50 percent of online gaming activity. The rest operates in a digital grey zone, much of it run by offshore syndicates targeting Filipino players.
“What’s really destroying the industry today are the illegal operators coming from other countries who are targeting Filipino customers,” he said. “That’s what is currently destroying the well-regulated online gaming industry regulated by Pagcor.”
Tengco warned that a total ban would drive gambling deeper underground and rob the government of much-needed revenue.
In 2024 alone, PAGCOR generated P50 billion from license fees paid by operators, on top of payments to the Bureau of Internal Revenue. He said one major gaming firm alone accounted for P30 to P40 billion.
“The effect of this is that our country could potentially lose hundreds of billions in revenue if the total ban is enacted,” Tengco said. “As I’ve said, what we need is strict regulation to manage the industry while ensuring government income.”
Aside from potential revenue loss, Tengco said the proposal would also strip thousands of direct and indirect employees of their jobs, including security guards, drivers, messengers, and restaurant staffers.
But Valeriano remained unmoved by the revenue argument, calling it “immaterial.” He vehemently asserted that no amount of revenue can compensate for the damage online gambling has caused to the lives of people, particularly the poor.
“When POGO was totally banned, we saw all the underlying problems come out. That’s what will happen also to online gaming,” Valeriano added. “Give us another two to three years without banning it, and we would face another major problem again.”
“What's the difference between illegal and legal? Either way, people will still spend money—it’s still gambling,” he pointed out.
The Covid-19 pandemic provided fertile ground for the explosion of online gambling under then-President Rodrigo Duterte.
Among them was e-sabong, which was initially regulated by PAGCOR but eventually suspended in May 2022 after the Department of the Interior and Local Government recommended a halt, citing serious societal harm.
A DILG survey conducted at the time showed that 62 percent of more than 8,000 respondents supported stopping e-sabong, citing reasons such as addiction, bankruptcy, family strain, neglect of work and studies, and gambling-related crime.
As early as the second week of the 20th Congress, several bills related to online gaming have been filed in both the House and the Senate.
Some legislators have only called for strict regulation to curb its promotional advertisement and accessibility, especially to the youth. But Valeriano believes that stringent measures will be ineffective with either legal or illegal gambling, thereby proposing a total ban.
According to Valeriano, gambling must be limited in hotel casinos, unlike today, where minors can easily access it via mobile phones.