Marcos open to online gaming tax

Philippine President Ferdinand R. Marcos, Jr. is open to taxing online gaming activities as well as proposals seeking to limit digital gambling to help curb the harms brought about by addiction, the Palace said on Monday.

“The DoF’s (Department of Finance) proposal to impose a tax to help restrict online gaming is for the welfare of Filipinos,” Palace Press Officer Clarissa A. Castro told reporters in Filipino during a news briefing. “The President is aware of the consequences of gambling addiction, and he will not oppose this proposal as long as it is supported by studies.”

“We want to limit this kind of gambling and those who are addicted to it. The President will not oppose proposals, including laws, that aim to do this… We will study any bills that will be passed by Congress to assess their impact on the economy and Filipinos’ welfare.”

Finance Secretary Ralph G. Recto last week said they will propose an online gaming tax and are also studying other policy options “to deter unimpeded and practically unrestricted access to gambling, particularly digital gambling platforms.”

These include imposing limits on playing time or cash-in to help prevent addiction, age restrictions, as well as displaying clear warnings about the risks of gambling, Mr. Recto said.

Ms. Castro said the government is also ramping up its crackdown on unlicensed and illegal online gaming sites.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said the DoF’s tax proposal is a “good way to increase government revenues.”

“The (online gambling) industry is growing quickly,” he said in a Viber message. “Whether it curbs gambling addiction is hard to answer, as it requires proper intervention and programs to promote responsible gaming.”

He added that an online gaming tax can serve as a barrier for new players while helping the government fund its programs.

Several lawmakers have filed bills seeking to curb online gambling amid its rising popularity among Filipinos.

On Monday, Senator Juan Miguel F. Zubiri said that he is seeking an outright ban on online gambling platforms, calling the rise of gambling addiction a “silent epidemic,” especially among the youth.

“The taxes earned are not worth the social cost. The lives of our countrymen are being ruined, families are fighting, crime is rising, and they are drowning in debt,” Mr. Zubiri said, adding that foregone revenues from the outright ban may reach P47 billion annually.

Senate Bill No. 142, or the Anti-Online Gambling Bill, seeks to ban online gambling on mobile gadgets. Internet service providers are also mandated to limit public access to online gambling platforms and applications.

It also seeks to prohibit electronic wallets and other digital payment systems from being used on online gaming platforms.

The Akbayan party-list also filed a bill in the House of Representatives that seeks to regulate online gaming sites.

“We cannot gamble away our youth’s future. Our children cannot become collateral in the jackpot dreams of gambling tycoons,” Party-list Rep. Jose Manuel “Chel” I. Diokno said in a statement.

House Bill No. 1351, or the Kontra E-Sugal bill, seeks to impose regulations for online gambling platforms, citing the need to safeguard public welfare, protect vulnerable groups, and ensure responsible gambling practices.

The bill wants to impose strict age verification protocols to prevent minors from accessing these platforms and limit advertising and promotion of digital gaming. It also seeks to impose a betting and loss limit.

Gross gaming revenue (GGR) rose by 27.44% to PHP 104.12 billion in the first quarter, the Philippine Amusement and Gaming Corp. earlier said, with electronic gaming out-earning physical casinos for the first time. Electronic businesses generated PHP 51.39 billion or 49.36% of GGR in the period. — Chloe Mari A. Hufana and Adrian H. Halili, Reporters