PAGCOR Opposes Bills Banning Online Gambling, Cites P40 Billion Loss

The Philippine Amusement and Gaming Corporation (PAGCOR) is opposing Senate bills that aim to ban online gambling, citing significant potential revenue losses. During a recent Senate hearing, PAGCOR President and CEO Alejandro Tengco pointed out the financial repercussions of such a ban and emphasized the importance of regulation over prohibition.

Tengco explained that banning online gambling could result in a revenue loss of P40 billion for PAGCOR. He highlighted the organization’s success in generating significant income from online gaming, with P17.5 billion collected in the first half of 2024 alone. Tengco expressed confidence that if unregistered companies were brought into the fold, PAGCOR could potentially generate up to P42 billion annually from online gaming licensees.

“If this law that is being proposed will be passed, and in these difficult times that everyone is facing today, I believe P40 billion pesos is a big amount if we will forgo that said amount,” Tengco was quoted as saying in a July 16 report published by GMA Network. “I am very confident that PAGCOR will generate anywhere from P38 to around 42 billion pesos from the online gaming licensees alone.”

Tengco advocated for the regulation and stringent monitoring of online gambling rather than an outright ban. He argued that effective regulation would not only curb illegal activities but also ensure that the government benefits from the substantial taxes collected from the online gaming sector.

“No ban…. Napakalaki po ng gray market sa online gaming humigit kumulang sa estimate namin 200 to 250 billion pesos. Kung hindi po natin yan ire-regulate, saan po mapupunta yan kundi sa mga bulsa lamang na nagpapatakbo ng mga operations na ito. Hindi po nakikinabang diyan kahit isang sentimo ang gobyerno,” Tengco remarked.

[“No ban…. The gray market in online gaming is very large, estimated to be around 200 to 250 billion pesos. If we don’t regulate it, where will it go but into the pockets of those running these operations. The government won’t benefit from it, not even a single centavo.

He added: “Sa paniwala ko po if all these online companies are properly regulated napakalaking halaga po ng buwis na kinukulekta ng PAGCOR ang pwedeng maibalik muli sa ating mga kababayan gayundin sa ating bansa.”

[“I believe that if all these online companies are properly regulated, PAGCOR will collect a huge amount of taxes that could benefit our countrymen and the country.”]

Despite PAGCOR’s stance, Senate Bills 63 and 1281, filed by Senator Alan Peter Cayetano and Senator Joel Villanueva, respectively, seek to “prohibit online gambling activities and the placing of wagers or bets through the internet or any form of online gambling activities.”

Lawmakers like Senator Sherwin Gatchalian have expressed concerns over the potential for addiction and other social issues related to online gambling. Gatchalian highlighted the ease with which individuals can open online gaming accounts using fake names and ages, underscoring the need for stringent monitoring.

Gatchalian said: “Definitely, dapat ding bantayang mabuti ito dahil nga nakita natin kanina ‘pag magbubukas ka ng online gaming account madaling magbukas. Pwede kang magbigay ng pekeng pangalan, pekeng age. So far wala tayong nakikita doon kundi addiction…Ang pinaka nakakatakot dito yung mga enforcement agencies natin ay maadik sa online gaming.”

[“Definitely, this should be monitored properly because we saw earlier how easy it is to open an online gaming account. You can give a fake name, fake age. So far, what we see is addiction… The most worrisome part is that our enforcement agencies might get addicted to online gaming.”]

Sources: GMANews / ABSCBNNews