P3.2-trillion revenue target at risk with online gambling ban, says BIR chief

MANILA, Philippines — Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. has warned that the government’s P3.2-trillion revenue goal for the year may be at risk if the proposed total ban on online gambling is implemented.

Lumagui said the BIR would be forced to recalibrate its fiscal outlook should a ban on internet gaming and other online gambling platforms be enforced.

The BIR chief emphasized the gaming sector contributes significantly to the national treasury.

He said that the BIR is currently on track, having collected P1.5 trillion in the first half of 2025. This, Lumagui added, is 0.5% higher than the agency’s midyear goal.

But the tax chief clarified that removing a substantial source of revenue midyear could create a serious gap in collections, especially as the government continues to rely on tax receipts to fund vital public services.

The statement comes amid renewed calls from lawmakers and civil society groups for a total ban on e-gambling due to alleged links to criminality, addiction and social disruption.

A number of competing bills are currently under deliberation in Congress — some proposing stricter regulations and a 10% gambling tax to fund mental health and rehabilitation services, and the others are advocating for an outright ban on all domestic and offshore online gambling operations.

The Marcos administration has so far remained noncommittal on the issue, with officials saying the matter is under comprehensive review and that a decision will be made based on a careful assessment of economic and social impacts.

Industry stakeholders have expressed concern over the potential loss of tens of thousands of jobs and the migration of users to unregulated or illegal platforms if a ban is imposed without sufficient transition measures.

Lumagui, for his part, urged policymakers to consider the revenue implications and the need to balance moral concerns with economic realities, especially in a post-pandemic economy still recovering from fiscal strain.

As deliberations continue, Lumagui reiterated the BIR's commitment to tax compliance and revenue efficiency, but noted that stability in major tax-contributing sectors will be critical to meeting the agency’s year-end target.