State-sanctioned harm

Policy-wise, gambling is generally prohibited in our country. In fact, in the Revised Penal Code (Articles 195-199), the default is that gambling is illegal. Unless permitted by special laws, those who engage in, facilitate, or allow it are criminally liable.

The general prohibition is based on moral grounds, because gambling is a vice that is only tolerable under limited, regulated conditions. Presidential Decree No. 1602, for example, in its ‘whereas’ clause, describes gambling as a “social menace which dissipates the energy and resources of our people.” Thus, special laws permitting gambling must be rooted in a narrow and specific premise. The question, then, is: what is that premise, or what are those premises?

One such premise is that of public amusement or recreation. This is evident in gambling activities that have become part of tradition or are culturally embedded, such as cockfighting during fiestas and bingo games at fundraisers. The underlying idea, supposedly, is that gambling may be allowed when it is limited to the context of leisure or communal celebration.

Another premise, as stated in the law that created the Philippine Amusement and Gaming Corp. (PAGCOR), is economic in nature. It holds that regulated gambling can serve as a source of public revenue and employment, as seen in the case of licensed casinos and e-gaming operations. Unfortunately, this is where much of the confusion lies regarding regulated gambling.

The confusion, or perhaps the self-delusion, stems from government’s failure to read the economic premise of regulated gambling in congruence with the principle that gambling is “a social menace which dissipates the energy and resources of our people,” and therefore must be strictly controlled.

The idea that gambling can generate revenue or jobs should never be allowed to override the fact that it is a vice with harmful social consequences. It’s a delicate balance, and if we fail in this regard, gambling will undermine the economic well-being of our people and ultimately destroy the economy itself.

This balance is precisely what Senator Sherwin Gatchalian seems to be grappling with. He proposes to regulate online gambling, specifically by banning e-wallet betting and requiring a ?10,000 minimum cash-in, apparently in response to how easily gambling now reaches even minors.

In the House of Representatives, at least two congressmen have filed a resolution seeking a legislative inquiry into the harms and regulatory gaps surrounding online gambling. Citing concerns over gambling’s growing impact, the resolution aims to examine online gambling’s toll on Filipinos --“from financial losses to mental health struggles and criminal exposure.”

Immediately, PAGCOR warned that although it supports stricter regulations, an outright ban on online gambling “would affect not only the more than 32,000 jobs created by the online gaming industry but also its ancillary businesses.” PAGCOR reported a net income of ?84.97 billion last year, about half of which came from e-games and e-bingo.

But then again, how can state-sanctioned gambling often be justified as a source of public revenue --supposedly meant to fund social programs and assist the poor-- when it also causes the very poverty it claims to relieve?

At the micro level, individuals and families lose hard-earned income through gambling, often leading to debt and reduced productivity. Some are even driven to theft or corrupt practices to fund their gambling addiction. Local retail shops and small businesses begin to experience weaker sales and shrinking customer demand.

At the macro level, a dip in consumer spending as well as household savings ultimately undermines the domestic economy and weakens overall growth. In effect, the government raises funds with one hand while allowing the other to suck the resources out of the poor and middle class --only to give them back to the same vulnerable sectors it claims to support. It becomes a vicious cycle.

Gambling has, in fact, become more widespread because it is now easily accessible online and conveniently linked to e-wallets. As some experts have noted, online gambling is traditional gambling on steroids: it magnifies the risks through speed, constant availability, and unregulated digital access, making it doubly more harmful.

Senator Juan Miguel Zubiri said on Monday that the revenues earned from gambling are not worth the social cost. “Nasisira na po ang buhay ng ating mga kababayan. Nag-aaway-away na po ang ating mga pamilya. Tumataas ang kaso ng krimen. Nababaon na sa gabundok na utang ang manggagawang Pilipino which then severely affects their mental health,” he said, as he pushed for a total ban on all forms of online gambling.