THE Philippine Amusement and Gaming Corp. (PAGCOR) has earned P69 billion from the licensing fees of legal online gambling platforms in the first seven months, its chairman said on Tuesday.
The state gaming regulator generated P41 billion from electronics games and P28 billion from other online betting platforms between January and July, proving the growing role of digital gaming as a revenue source for the government, PAGCOR Chairman Alejandro H. Tengco said.
“Because of its huge potential, online gaming has become an important source of funds for our nation-building commitments,” he told lawmakers at a congressional hearing, according to a statement from his office.
Online gaming is currently the target of a campaign for stricter regulation, increased taxation, or even an outright ban amid concerns about social impacts like gambling addiction.
“These illegal sites not only deprive the government of much-needed revenues but also expose Filipino players to numerous risks,” said Mr. Tengco, citing heightened addiction concerns and the possibility of users losing their deposits to unregulated platforms.
Most illegal gambling platforms are operating in other countries, making enforcement difficult and rendering a total digital betting ban futile, he added.
“Ninety-nine percent of illegal platforms are not within the jurisdiction of the Philippines,” he said in Filipino. “They are mostly based overseas, like Cambodia and Timor-Leste.
“That’s what I want to highlight. That even if we impose a total ban, the problem will only become more difficult for us,” he added.
Mr. Tengco said PAGCOR is drafting a joint memorandum with the Department and Information Communications Technology’s Cybercrime Investigation and Coordinating Center to bolster the government’s crackdown on illegal betting platforms.
“It is being spearheaded by the Cybercrime Commission,” he said, citing that PAGCOR cannot take the lead in the campaign against illicit platforms due to lack of authority.
“We do not have the police power to enforce, that’s why… even though we have the mandate to issue licenses, we lack police authority,” said Mr. Tengco.
The state gaming regulator expects legal online gambling platforms to account for 43% of the online betting market by yearend, he said, as state efforts to curb illegal firms ramp up.
“What I expect, by the end of the year, is to increase the share of legal gambling sites to 42-43%,” he said.
About 60% of the Philippines’ online gambling market is occupied by illegal platforms, with only 40% operating under proper licenses, according to a copy of PAGCOR’s presentation to congressmen, of which a copy was obtained by BusinessWorld.
Mr. Tengco said the government has closed down about 8,000 illegal platforms so far. — Kenneth Christiane L. Basilio
