Illegal gambling reduces profitability
Illegal gambling is considered as one of the biggest problems operators face in the Philippines.
Philippines.- Illegal gambling has caused the loss of 30 percent revenue in the Philippines. Experts consider illegal gambling as one of the major problems to set a transparent development of the casino industry, as well as a threat for licensed operators who contribute to the country’s economy with monthly taxes.
The money lost to illegal gambling would have been used to help provided medical assistance to Filipinos, according to PCSO Chairman Jose Jorge Corpuz. Licensed gaming operations destine to the Philippine Charity Sweepstakes Office monthly incomes to help the association to provide what society needs.
During a Senate hearing last Tuesday on the proposed creation of the Philippine Charity Office (PCO), some AACs complained that illegal gambling continues to flourish in their areas of operation preventing them from fully meeting their obligations to the government.
Meanwhile, legislators are discussing the implementation of a casino entry fee, which was rejected by Pagcor (Philippine Amusement and Gaming Corp) as the authority argued that it would affect the business. Under the amendment, casino participants would have to pay PHP3000 (US$61) in order to enter to any casino of the country.
President Rodrigo Duterte signed the law that places casino operations under the AMLA on mid-July, which requires that casino transactions worth at least US$100k have to be reported to the AMLC. If an activity gets reported, the court is forced to conduct a hearing in order to determine the freeze order, which cannot exceed a six month period, or the lift of the sanction. If the country gets blacklisted by the APG, it would be put under strict financial monitoring.
