Our e-gambling republic

At the festive Canada Day reception last month, hosted by Ambassador David Hartman, I bumped into Canadian-born content creator Kyle Jennermann, or Kulas, who is behind the widely popular vlog Becoming Filipino.

Kulas, now a naturalized Filipino, talked to me and fellow journalists about online gaming as he raised concerns over the rise of online betting in the Philippines.

This was after he took a jeepney ride somewhere in Metro Manila and witnessed the driver using a gambling app during stops, seemingly so addicted to the game.

During our chat, he recalled how the driver would check his phone and try to spin a few more slots on an online bingo game. During a long stop, he kept loading more money through his GCash so that he could do more spins.

Kulas said the driver practically blew all his earnings from work that day...in minutes.

“I had the saddest jeepney ride I have ever experienced,” the vlogger said.

Online gambling, indeed, has become so popular in recent years, growing exponentially to the point that brick-and-mortar casinos have been seeing fewer gamblers at their tables.

Revenue jackpot

E-games, which offer a wider spectrum of games – including just about everything in brick-and-mortar casinos, plus the well-loved bingo – have been seeing a phenomenal increase in revenue.

In the first quarter of the year, the Philippine Amusement and Gaming Corp. (PAGCOR) reported that revenues hit P28.07 billion, an 11.2 percent spike from P25.24 billion a year ago, with the bulk of revenues coming from gaming operations, which contributed P25.52 billion.

Of the P25.52 billion, more than half came from the e-games and e-bingo segment, which generated P14.32 billion or 56 percent of the total pie. Imagine that!

The traditional casinos generated P8.32 billion or 32.6 percent, while PAGCOR-operated casinos chipped in P2.88 billion or 11.31 percent of the pie.

Just a little over a decade ago, the country’s tycoons were scrambling to get their respective licenses for brick-and-mortar casinos.

But now, people go to the Las Vegas-style Entertainment City in Parañaque to stroll around, shop or eat instead of just rolling the dice.

It’s no surprise that casino tycoons are now placing their bets on e-games, seeing how listed DigiPlus and other gaming companies are raking it in.

Regulating e-games

Lawmakers, however, are moving to regulate e-games. It’s either they genuinely realize that it needs to be done or they are doing this for their own vested interest.

As I write this, moves to regulate e-games are still being finalized, but for sure, there will be some sort of tightening such as possibly raising the minimum age allowed to participate in e-games to 21 from 18.

For sure, it won’t be business as usual, but I doubt that the Marcos administration can ban it altogether – if it is even considering it.

After all, Marcos’ buddy Al Tengco, the Pagcor chair, does not want an outright ban, but he said he supports stricter regulation.

“In the meantime, rest assured that PAGCOR remains fully committed to intensifying its efforts in the ongoing battle against the proliferation of illegal online gaming activities, together with like-minded agencies and organizations and with the support of all gaming industry stakeholders,” Pagcor said.

Cautionary tale

In any case, moves to regulate e-games are very much welcome. This must happen before the sector implodes and turns the industry into a netherworld with bad actors and even criminals – just like what happened to e-sabong and the POGOs.

The sector doesn’t even have a massive ripple effect on the economy in terms of job creation, unlike the brick-and-mortar casinos.

Gambling no doubt has its social costs, and regulators should keep in mind that addiction – whether to drugs, alcohol or gambling – is a disease. It is medically and legally considered a disease. It’s too convenient to think that gamblers must simply be responsible so they don’t get addicted.

Kulas’ suggestion for e-wallets not to include e-games can help prevent addiction, although I don’t know if this is the right solution or just a palliative. Just the same, I’m sure the e-wallets won’t go bankrupt if they remove the e-games from their platforms.

As it is now, the horror stories are as endless as they are varied.

In Kulas’ vlog, there are tales of workers inventing sob stories to continue on with the addicting habit; of Grab drivers also hooked on e-games and 4Ps beneficiaries using taxpayers’ money to gamble.

Those who are struggling to make ends meet are especially vulnerable to the ill effects of gambling addiction because of their pressing needs.

What’s to stop jeepney drivers, for instance, from spending their fuel subsidies on e-games? Or others in the marginalized sector from betting their ayuda with the hope of winning bigger returns? Or farmers from using their loans – supposedly for fertilizers – on e-games?

The young people, too – including students and out-of-school youth – are likewise vulnerable to e-games and other forms of gambling addiction.

These concerns are real and valid. Addiction to gambling, like other vices such as alcohol and drugs, destroys individuals, families and wrecks one’s future.

Against this backdrop, the government must strike a balance: strengthen the safeguards and accountability of legitimate operators.

Because, as we’ve seen in the country, imposing an outright ban or too stiff regulations will just pave the way for illegal e-games players. When this happens, Filipinos, especially the vulnerable, are the ones who will lose.

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Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.