Philippine finance secretary proposes tax hike rather than online gambling ban
Ralph Recto said stricter taxation and regulation would boost revenue and control the sector.
The Philippines.- Finance secretary Ralph Recto has made the case for raising taxes and tightening regulations on online gambling operators rather than a ban. He said this would increase state revenue, improve transparency and maintain oversight of a sector that remains partially unregulated and largely dominated by illegal operators.
Speaking to reporters, Recto said a 10 per cent hike in taxes on online gambling could generate an estimated PHP20bn (US$349m) annually. He noted that the Philippine Amusement and Gaming Corporation (PAGCOR) already collects 30 per cent of gross gaming revenue (GGR) from electronic gaming, with an additional 5 per cent franchise tax from the Bureau of Internal Revenue. “We may increase that even further,” Recto stated.
He said banning the activity would be counterproductive. “If you ban it, everything becomes illegal,” he cautioned, adding that the government would lose the ability to collect revenue or enforce responsible gaming safeguards. Recto also proposed mandatory stock exchange listings for all licensed operators. This would subject companies to strict disclosure rules, helping authorities identify beneficial owners and ensure financial transparency. “We can force them to list so that we know who’s behind them,” he said.
Other regulatory proposals include implementing national ID verification to block underage users, setting a minimum gambling age of 21, and requiring addiction warning labels similar to those on tobacco products. Recto drew comparisons to land-based casinos, where government employees are banned from gambling, suggesting that such restrictions should be mirrored on digital platforms.
President Ferdinand Marcos Jr. is expected to announce formal policy decisions during his State of the Nation Address on July 28.
