A year since President Ferdinand R. Marcos Jr. ordered the closure of Philippine Offshore Gaming Operators (POGO), government leaders are at a crossroads once again regarding how much pressure to exert on a multi-billion industry that has proven to be more of a societal cancer than a contributor to inclusive growth.
During the President’s fourth State of the Nation Address on 28 July, Filipinos eagerly awaited his position and policy directions regarding online gambling. However, his non-mention of the issue suggested the government is currently struggling to balance the demand to ban online gambling with the revenues it provides the government.
While lawmakers and civil society groups advocating for a total ban were left dissatisfied by the President’s silence on online gambling, Palace officials quickly defended him, saying he was thoroughly evaluating the impact of online gambling on the people and the country.
Arguably, banning will not only kill the goose that lays the golden egg but will spawn an underground gambling industry that will make it much more difficult to regulate and to protect the public, particularly minors.
Economically, the Philippine Amusement and Gaming Corp. (Pagcor) reported that gross gaming revenues (GGR) grew by 26 percent to P214.75 billion in the first half from P171 billion a year ago. Profits from online gambling accounted for more than half of that at P114.83 billion in the first half.
Various government agencies are also addressing the issue of online gambling. The Bangko Sentral ng Pilipinas (BSP) is collaborating with the banking industry, digital banks, and e-wallet service providers to gather input on proposed measures aimed at protecting consumers from potential financial harm associated with online gambling. The rise of e-wallets has simplified the process of betting and collecting prizes.
Fintech players and e-wallet providers like GCash and Maya have committed to working with the BSP to implement enhanced safeguards, establish cash-in limits, and enforce strict Know Your Customer (KYC) processes.
Contrary to belief, Maya and GCash have landing pages that users must go through before being redirected to a Pagcor-registered online gambling platform. These pages ensure that users are at least 21 years old, are not government employees, and their services are limited to cash-in and cash-out transactions only.
With consumers, industry players, government leaders, and policymakers expressing differing opinions, mainstream and social media have also stirred up significant coverage. Legitimate operators are encouraging the government to impose higher fees, implement stricter measures and penalties, and crack down on illegal site operators.
Last week, the Senate held a hearing to investigate the rise of online gambling and tackle several pending bills pushing for the total ban of all forms of online gambling. At the hearing, BSP shared it gave e-wallet providers 48 hours (since Thursday) to remove in-app links to online gambling sites while it finalizes the regulation. Undoubtedly, online gambling platforms have provided a lucrative source of income, offering quick rewards to consumers through attractive cash prizes. While a portion of the revenues is remitted to the government, the societal harm these platforms cause outweighs their benefits.
As a Poll Starter, we could look into the advantages and disadvantages of online gambling. If the government chooses to regulate, it needs to establish stricter regulations, create a robust law enforcement detection system, implement comprehensive programs, and enforce harsher penalties against illegal operators. But if it bans these platforms entirely, it must find new revenue streams to cover the foregone revenues that help fund its programs.
Deciding the online gambling industry’s future is a daunting task. Decisions may affect not only investors but also government programs and social services. Hence, a careful assessment is essential, not only to protect consumers but to create a favorable environment that encourages legitimate operators to register and establish lawful businesses in the country.
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Paul Anthony Isla is an experienced public relations, government relations, and crisis management professional. He has worked with some of the largest companies in the country, including the leading power distributor, the largest telecommunications firm, a petroleum company, and a venture capital firm. Prior to his corporate career, Paul spent over a decade as a business journalist, covering key sectors such as banking and finance, energy, and information and communication technology. He began his journalism career as a business correspondent for Daily Tribune immediately after completing his internship in 2001.