PAGCOR Opposes Bills Banning Online Gambling, Cites P40B Revenue Loss

The Philippine Amusement and Gaming Corporation (PAGCOR) has voiced its opposition to Senate bills proposing a ban on online gambling, citing a significant potential revenue loss of P40 billion.

At a Senate hearing, PAGCOR President and CEO Alejandro Tengco warned that enacting these measures would lead to substantial financial shortfalls during already challenging times.

“If this proposed law is passed, we would forgo a significant P40 billion in revenues,” Tengco stated. “Given the current economic climate, this loss is considerable.”

Revenue from Online Gambling

PAGCOR has already seen significant income from online gambling. By the end of 2023, the corporation collected P13.7 billion from gross gaming revenue (GGR) for online games alone. In the first half of this year, PAGCOR generated P17.5 billion.

Tengco emphasized that legalizing currently unregistered online gambling operations could yield between P38 billion to P42 billion annually.

Gray Market Concerns

Tengco also highlighted the vast size of the gray market in online gambling, estimated at P200 to P250 billion. Without regulation, these funds benefit only the operators, not the government.

“Regulating these online companies could result in significant tax revenue that would benefit the public and the country,” Tengco noted.

Legislative Efforts

Senate Bills 63 and 1281, filed by Senators Alan Peter Cayetano and Joel Villanueva, respectively, aim to prohibit online gambling activities. However, PAGCOR advocates for regulation rather than prohibition, arguing it would control the gray market and generate vital tax revenue.

PAGCOR’s Senior Vice President for Security Monitoring Cluster, Raul Villanueva, reported significant efforts in shutting down illegal online gambling sites. Of 7,747 identified illegal sites, 5,793 have been closed, with 1,954 still active.

Need for Further Study

Senator Sherwin Gatchalian, who presided over the hearing, emphasized the need for further study and stringent monitoring of online gambling to prevent addiction and misuse. Gatchalian noted the ease of creating online gaming accounts with fake information and the potential risk of law enforcement officers becoming addicted to online gambling, leading to illegal activities.