Recto wants stricter rules, not ban on online gambling

MANILA, Philippines — Instead of a total ban, the government should tighten rules and enforcement of online gambling operations as the government rakes in stronger revenues from the industry, Finance Secretary Ralph Recto said.

In a message to The STAR, Recto said more stringent rules must be put in place in order to address concerns over Philippine inland gaming operator (PIGO) licenses – more commonly known as e-gambling businesses.

He said PIGOs should not be totally stopped.

“We collect a lot of revenue from PAGCOR (Philippine Amusement and Gaming Corp.) and it’s growing. But that’s not in our radar yet,” Recto said.

As a solution, the finance chief said the government should impose more rigorous rules on the industry.

“Personally, I would prefer that when you open a gambling website, there is a warning that gambling is not good for you,” Recto said.

“Strict enforcement that minors are not allowed to gamble, and maybe instead of self-declaration that you are above 18, we incorporate the national ID to ensure the person is an adult,” he said.

This developed after Senate President Francis Escudero proposed a review of PIGOs to see if these are worth continuing.

Escudero noted that issues raised against the controversial Philippine offshore gaming operators (POGOs) could be leveled against those of PIGOs.

If it is proven that PIGOs are affecting the lives of Filipinos, particularly the poor and those with little disposable income, Escudero said the government should start to consider whether a ban is also in order.

De La Salle University economist Ma. Ella Oplas found the proposal to be misplaced as she noted the country’s need to work double time in generating revenue especially for debt repayments.

“The proposal is backward, especially with the need to reduce our deficit. We have a lot of debts that need to be paid, plus the government has so many weird populist programs [for funding],” Oplas told The STAR.

“I think it’s an untimely proposal given the fiscal condition of the country. It’s noble but where do we get the much needed funds for debt payments?” she said.

After the POGO ban, Oplas emphasized that doing the same to online gambling appears to be too much given that it is a source of government revenue.

Last year, PAGCOR’s revenues hit a new record high of P112 billion on the back of sustained performance of the online gambling sector.

The industry contributed nearly P50 billion in revenues which PAGCOR said is a reflection of the increasing popularity of digital gaming platforms and the impact of technology.

“Even if it is immoral because it encourages betting, we compensate by saying in the name of revenue generation. That’s why PAGCOR is there to regulate,” Oplas said.

The economist warned that unless the government comes up with additional sources of revenues, the budget deficit could increase yet again.

“Although it may seem smaller in proportion, the question is where can we still source our revenue? Definitely no new tax because it will just further hurt us,” she said.