“`html
By Aubrey Rose A. Inosante and Revin Mikhael D. Ochave, Reporters
THE PHILIPPINE administration is contemplating extensive reforms for digital gambling operators, which encompasses compulsory stock exchange listings and heightened taxes, aiming to enhance regulation and minimize the societal ramifications of gambling addiction.
Finance Secretary Ralph G. Recto mentioned that the Department of Finance is advocating for new taxation and licensing fees for online gaming companies, receiving support from President Ferdinand R. Marcos, Jr.
“We can compel them to list so that we identify who the individuals behind it are,” he informed reporters on Wednesday. “This increases transparency.”
If enacted, the action will subject online gaming platforms to the same public examination as listed firms such as Bloomberry Resorts Corp. and DigiPlus Interactive Corp., which manage ArenaPlus, BingoPlus, and GameZone.
The Philippine Amusement and Gaming Corp. (PAGCOR) enforces a 30% rate on e-gaming platforms, while the Bureau of Internal Revenue adds a further 5% franchise tax and a 3% auditing fee, culminating in an overall effective rate of approximately 38%.
“We may elevate that even more,” Mr. Recto stated, alluding to a broader initiative to enhance government income and dissuade unregulated gambling.
Earlier this year, PAGCOR decreased the remittance rate for e-games to 30% from 35% and lowered the rate for e-games within integrated resorts to 25%, citing the operational costs of physical venues. Despite these modifications, illegal gaming persists.
Mr. Recto indicated that roughly 60% of the gaming sector functions illegally. “The losses from uncollected taxes could reach around P500 billion, given that the P200 billion [in gross gaming revenue] is legitimate,” he remarked.
The gross gaming revenue (GGR) is anticipated to exceed P200 billion this year.
The Finance head added that the government is also examining whether to impose taxes on individual bets made online, although taxing GGR might be easier to execute. “We increase [tax] by what? 10%? That’s P20 billion a year,” he noted.
Analysts endorsed the initiative to mandate online gaming firms to list publicly, citing enhanced governance and transparency, but mentioned it could disadvantage smaller entities.
“Many smaller players might struggle to meet the conditions and challenges of operating as a public company, thus favoring larger gaming corporations,” Juan Paolo E. Colet, managing director at China Bank Capital Corp., conveyed in a Viber message.
Foundation for Economic Freedom President Calixto V. Chikiamco observed that while transparency is beneficial, it may be complex to require all firms to go public.
“Some may prefer to remain private,” he remarked, adding that a viable approach could involve taxing transactions made through digital wallets like GCash.
Economic Planning Secretary Arsenio M. Balisacan has also voiced his support for taxing online gaming and its users, stating that monitoring e-wallet transactions could facilitate tax collection.
John Paolo R. Rivera, a senior research associate at the Philippine Institute for Development Studies, mentioned that mandatory listings could potentially boost competition. “New entrants with robust digital platforms might draw investor interest and capture market share.”
Luis A. Limlingan, sales head at Regina Capital Development Corp., indicated that the introduction of more online gaming platforms might present challenges but could also invite institutional investment and enhance legitimacy.
Mr. Recto also clarified that the government is not contemplating a complete ban, despite President Marcos having previously ordered the phaseout of Philippine offshore gaming operators.
‘BLACK MARKETS’
“I don’t believe it should be prohibited,” the Finance chief stated. “I think increased regulation and higher taxes are sufficient. Hopefully, with this, the number of players will diminish.”
He indicated that a discussion at the presidential palace was recently convened to address the rise of online lottery platforms not associated with the Philippine Charity Sweepstakes Office.
Mr. Recto suggested that further specifics regarding the online gaming reform strategy might be disclosed during the President’s state of the nation address on July 28.
Meanwhile, DigiPlus encouraged lawmakers to emphasize regulation over a total ban.
“The experiences of other nations have demonstrated that prohibiting licensed platforms does not eliminate the demand for online gaming but merely transfers users to unregulated black markets,” it stated in a communication on Wednesday evening.
The firm remarked that a regulated marketplace could safeguard players, generate billions in income, and support over 40,000 jobs in technology, marketing, entertainment, customer service, and compliance.
DigiPlus shares tumbled 30% or P8.36 to conclude at P19.54 each on Thursday amidst regulatory ambiguity.
Company Chairman Eusebio H. Tanco stressed that DigiPlus endorses “intelligent and balanced” regulation. “We are convinced regulation is the route to protecting players. It’s the exclusive method to ensure player safety, maintain jobs, and eliminate illegal, underground platforms operating without oversight,” he remarked.
Mr. Tanco mentioned that the company is prepared to collaborate with lawmakers and regulators to position the Philippines as a “model for safe, transparent online gaming in Asia.”
DigiPlus stated it already employs rigorous know-your-customer verification, which includes government ID checks and age restrictions, along with responsible gaming features such as deposit limits, self-exclusion, and cooling-off periods.
Upcoming functionalities will feature enhanced affordability assessments, behavioral nudges, and referral channels to mental health experts. In-app community support areas and responsible gaming information will also be launched across its platforms this month.
“These initiatives are not reactions to regulatory pressures, but part of a multi-year strategy to establish a responsible gaming environment,” DigiPlus asserted.
It emphasized that it advocates for revised legislation imposing tougher penalties on illegal operators and clearer advertising standards within the digital gaming landscape.
Source link
“`
