Are some lawmakers pro-jueteng?

Amid the noise at the West Philippine Sea and the fallout from the campaign-related contribution by government project contractors to some lawmakers, a bunch of senators are pushing for the disengagement of mobile wallets from the gaming digital platforms forthwith. Is this a way of diverting attention from the more politically charged issue, we do not know. The fact, however, remains that disengagement of mobile wallets from gaming digital platforms will have ramifications.

Actually, it is so unusual to allocate this space again to gaming digital platforms after just three (3) weeks. Then, this space was dedicated to a similar topic (POGOs are out, what about PIGOs?) on July 26, 2025. The issue though this time is a bit different.

First and foremost, we have to be real. Though, obviously, Philippine Amusement & Gaming Corporation (PAGCOR) lost a lot in regulatory fees and the BIR’s (Bureau of Internal Revenue) collection of franchise taxes dropped due to the demise of POGOs, what was more painful was the sight of hectares of vacant office spaces. Worse, the “office-adjacent economy” also took a hit as restaurants, coffee shops, etc. missed their patrons. Lots of rented houses, apartments and condo units also missed their tenants. Consequently, joblessness prevailed as the POGOs and the affected businesses no longer needed them.

While we haven’t fully recovered yet from the economic downside of POGOs’ departure, the clamor for the PIGOs’ (or Philippine Inland Gaming Operators) demise is now on the rise.  Disengaging mobile wallets is one of those ways of killing the industry. Well-thought-out or not, we do not know. What is certain is, if pushed through, we can again experience joblessness and drop in government revenues like PAGCOR’s regulatory fees, BIR’s franchise taxes and VAT and income taxes from businesses within the “office-adjacent economy” that shall be directly affected. So, what are PIGOs then?

Unlike POGOs, which primarily cater to foreign customers, PIGOs are also authorized by PAGCOR and practically run the same types of gaming establishments and platforms, including online casinos, sports betting, and other gaming services but are exclusively catering to the residents of the Philippines.  So that, should this be stopped, apart from joblessness and government losses on revenues, illegal gambling like “jueteng”, which uses pure cash, or the unregulated foreign-based platforms may just flourish as the shift will likely happen.

This notion is confirmed by The Fourth Wall, a research firm, which surveyed over 1,000 online gamers in the major urban areas in the country. Such survey showed that “53% of respondents oppose banning regulated online gambling altogether. There was instead a call for “better regulations” to “create a safer playing environment and prevent the proliferation of unregulated gambling platforms.” Similar to what we’ve put forward earlier, according to the report, 75% of respondents believed that a ban on regulated online gambling would simply push users toward illegal and unregulated foreign sites.

To address this, we have, at least, two regulators in place, PAGCOR and the Bangko Sentral ng Pilipinas (BSP). They must work together to establish policies, rules and regulations that all mobile wallet providers must strictly adhere to.  Simply put, together they shall strictly regulate the online gaming industry. For one, mobile wallets/digital banks are under the supervisory control of the BSP. As such, the Know Your Client (KYC) policy is strictly in place.  Any individual who may open an account shall go through the rigmarole of providing the needed factual data or information (such as age, source of income, etc.) to complete such transaction.

Moreover, the mobile wallet providers must make sure that payments aren’t made to illegal gambling sites. With a battalion of techies under their employ, they can easily do that. Better still, a daily cap must be established on payments to legal gaming digital platforms.  Also, PAGCOR must coordinate with the providers to establish controls on payouts to gaming sites to make sure that minors (as e-wallet providers have age information) cannot use them to pay for their bets.

More importantly, the fact alone that the BSP (based on their draft circular), in general, is tightening the rules on the use of mobile wallets accentuates the gravity of their commitment.

However, despite these information (about the possible shift) and the regulators’ current and future initiatives, if some lawmakers will still insist, we may ask, are you pro-jueteng?

well as logistics support and buyer matching to connect producers with broader markets.

Once fully operational, the Northern. Palawan hub is expected to serve as a model for replicating community-owned cold chain systems in other fishing regions — a critical step in stabilizing seafood supply, reducing waste, and imroving the country’s food resilience. — Ehda M. Dagooc