Will Philippines outlaw domestic online gambling?
Philippine Senate President Francis Escudero has advocated for a thorough review of Philippine Inland Gaming Operators (PIGOs), asserting that they may pose similar challenges as the now-banned offshore gaming sector.
“We must assess this situation diligently,” Escudero stated in a March 1 announcement. “The adverse effects we aim to mitigate are likely present within PIGOs, which predominantly affect Filipino citizens rather than foreign nationals.”
Escudero drew a parallel between PIGOs (Philippine Inland Gaming Operations) and POGOs (Philippine Offshore Gaming Operations). Following significant concerns around money laundering, human trafficking, prostitution, and fraud, President Ferdinand Marcos Jr. mandated the discontinuation of POGOs last year.
While POGOs primarily targeted international online casino customers, particularly in mainland China, PIGOs engage players directly within the Philippines.
“I understand that the Philippine Amusement and Gaming Corporation (PAGCOR) generates a substantial amount of revenue from these operations,” Escudero remarked, as reported by the Philippine Daily Inquirer. “While this is a critical revenue stream, if PAGCOR could cease operations with POGOs, it should be equally feasible to do so for PIGOs, especially if they are proving detrimental to our citizens.”
Historical Context and the Need for Review
Escudero has previously pushed for an overarching ban on all forms of gambling in the Philippines, stating, “Whether it’s POGO, PIGO, or traditional casinos, we should consider banning them altogether if we sincerely believe they are harmful to our society.”
Regulation Over Elimination
Experts contend that a complete ban on gambling is unlikely. Jeri R. Alfonso, an analyst from Unicapital Securities, emphasized in comments on Viber that PAGCOR has emerged as one of the Philippines’ “third-largest revenue sources, following the Bureau of Internal Revenue and the Bureau of Customs,” contributing approximately PHP 4.59 billion (£62.6 million/€75.6 million/$79.6 million) in cash dividends in 2024.
“A full prohibition on online gambling would significantly impact government budgets,” Alfonso cautioned. “In our analysis, a total ban appears improbable.”
Similarly, Juan Paolo E. Colet, Managing Director of China Bank Capital, suggested that a prohibition would unjustly deprive the government of essential revenues. “PAGCOR has established an adequate regulatory framework to sustain a robust gaming sector that meets substantial market demand and supports the government’s social initiatives,” Colet noted.
He further highlighted that the absence of legal gambling options might drive Filipino players into the black market, which would exacerbate the situation. “The more prudent path forward is to regulate rather than eliminate,” he asserted.
Adding weight to these concerns, Senator Risa Hontiveros called on the Marcos administration to suspend all forms of online gambling, citing fears that POGO operators could be infiltrating the local market.
It is worth noting that PAGCOR legalized PIGOs in 2018, just two years after the introduction of POGOs, indicating a nuanced evolution in the regulatory landscape of the Philippine gambling sector.
