PAGCOR opposed to banning online gaming bills

Alejandro Tengco, chairman and chief executive of the Philippine Amusement and Gaming Corp (PAGCOR), opposes bills proposing a ban on all forms of online gambling in the country. He made these comments on Tuesday at a Senate Committee on Ways and Means hearing, as reported by local media.

Mr. Tengco emphasized the need for proper regulation of the online gaming sector to increase tax revenue and curb illegal betting. He warned that passing the proposed bills could result in a loss of PHP40 billion in tax revenues.

On the sidelines of the hearing, Mr. Tengco told reporters that PAGCOR estimates revenue from illegal online operations to be “around PHP200 billion to PHP250 billion.”

“If we don’t regulate it, the money will end up in the pockets of those running these [illegal] operations, and the government won’t benefit even one cent,” he stated.

In late June, Philippine Senator Joel Villanueva urged his Senate colleagues to pass Senate Bill 1281, one of the bills aiming to ban all forms of online gambling in the country. Mr. Villanueva said in a June statement that the country’s gaming regulator needed to “step up its game in shutting down” all online gambling activities.

Mr. Villanueva’s bill calls for prohibiting online gambling and placing wagers or bets through the Internet. It proposes sentencing any person involved in online gambling to up to six months in prison or a fine of up to PHP500,000.

During Tuesday’s hearing, PAGCOR officials reported that since 2022, the agency had collaborated with other departments to block 5,793 out of 7,747 online gambling websites and apps deemed “illegal.”

Mr. Tengco noted that the crackdown had prompted some illegal operators to seek government registration.

“In the last 45 days, three large companies involved in illegal operations have expressed their intention to register,” said the PAGCOR CEO.

Illegal and unlicensed online gaming operations really hinders the growth of regulated online gaming. The government needs to ramp up their actions to alleviate not just illegal operations but also the other problems that stem from those illegal operators.

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