The Philippines considers fee hike for online gambling
Finance secretary Ralph Recto says licence fees may rise to 40 per cent of gross gaming revenue.
The Philippines.- Finance secretary Ralph Recto has said that the government is considering raising the licence fee for online gambling from the current 25 per cent of gross gaming revenue (GGR) to as high as 40 per cent. The proposal is part of a strategy to generate PHP200bn (US$3.42bn) in gaming-related revenue in 2025 between land-based and online platforms.
Recto said several fee structures are under review, including possible 30, 35, or 40 per cent rates. “We’re studying that because if it’s too high, it might lead to a rise in illegal operations,” he cautioned. He estimates that 60 per cent of gambling activity in the Philippines is currently illegal.
The Department of Health’s has classified online gambling as a public health concern and lawmakers have expressed frustration that President Ferdinand Marcos Jr. did not mention the issue in his recent State of the Nation Address despite growing calls for reforms.
Recto said the President is “concerned” and that new regulations are in the works. Potential measures include limiting betting hours, raising minimum cash-in thresholds, removing gambling links from mobile wallets and enhancing coordination with PAGCOR and the Bangko Sentral ng Pilipinas (BSP).
Despite pressure from some legislators to impose an outright ban, Recto warned that doing so would push activity underground. “If you ban, 100 per cent will become illegal. It’s a balancing act,” he said. “My advice: don’t gamble. But if people do, it’s better to regulate than drive them to the black market.”
