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By Aubrey Rose A. Inosante <\/b>and <\/i><\/span>Revin Mikhael D. Ochave, <\/b>Reporters<\/i><\/span><\/p>\n THE PHILIPPINE administration is <\/span>con<\/span>templating extensive reforms for <\/span>digital gambling<\/span> operators, which encompasses <\/span>compulsory stock exchange listings and heightened taxes, aiming to enhance regulation and minimize the societal ramifications of gambling addiction.<\/span><\/p>\n 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.<\/p>\n \u201cWe can compel them to list so that we identify who the individuals behind it are,\u201d he informed reporters on Wednesday. \u201cThis increases transparency.\u201d<\/p>\n 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.<\/span><\/p>\n 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 <\/span>in an overall effective rate of approximately 38%.<\/p>\n \u201cWe may elevate that even more,\u201d Mr. Recto stated, alluding to a broader initiative to enhance government income and dissuade unregulated gambling.<\/p>\n 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.<\/span><\/p>\n Mr. Recto indicated that roughly 60% of the gaming sector functions illegally. \u201cThe losses from uncollected taxes could reach around P500 billion, given that the P200 billion [in gross gaming revenue] is legitimate,\u201d he remarked.<\/p>\n The gross gaming revenue (GGR) is anticipated to exceed P200 billion this year.<\/p>\n 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. \u201cWe increase [tax] by what? 10%? That\u2019s P20 billion a year,\u201d he noted.<\/p>\n Analysts endorsed the initiative to mandate online gaming firms to list publicly, citing enhanced governance and transparency, but mentioned it could disadvantage smaller entities.<\/p>\n \u201cMany smaller players might struggle to meet the conditions and challenges of operating as a public company, thus favoring larger gaming corporations,\u201d Juan Paolo E. Colet, managing director at China Bank Capital Corp., conveyed in a Viber message.<\/p>\n 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.<\/span><\/p>\n \u201cSome may prefer to remain private,\u201d he remarked, adding that a viable approach could involve taxing transactions made through digital wallets like GCash.<\/p>\n 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.<\/p>\n John Paolo R. Rivera, a senior research associate at the Philippine Institute for Development Studies, mentioned that mandatory listings could potentially boost competition. \u201cNew entrants with robust digital platforms might draw investor interest and capture market share.\u201d<\/p>\n 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.<\/p>\n 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.<\/span><\/p>\n \u2018BLACK MARKETS\u2019 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.<\/span><\/p>\n Mr. Recto suggested that further specifics regarding the online gaming reform strategy might be disclosed during the President\u2019s state of the nation address on July 28.<\/p>\n Meanwhile, DigiPlus encouraged lawmakers to emphasize regulation over a total ban.<\/p>\n \u201cThe 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,\u201d it stated in a communication on Wednesday evening.<\/span><\/p>\n 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.<\/p>\n DigiPlus shares tumbled 30% or P8.36 to conclude at P19.54 each on Thursday amidst regulatory ambiguity.<\/p>\n Company Chairman Eusebio H. Tanco stressed that DigiPlus endorses \u201cintelligent and balanced\u201d regulation. \u201cWe are convinced regulation is the route to protecting players. It\u2019s the exclusive method to ensure player safety, maintain jobs, and eliminate illegal, underground platforms operating without oversight,\u201d he remarked.<\/p>\n Mr. Tanco mentioned that the company is prepared to collaborate with lawmakers and regulators to position the Philippines as a \u201cmodel for safe, transparent online gaming in Asia.\u201d<\/p>\n 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.<\/p>\n
\n<\/b>\u201cI don\u2019t believe it should be prohibited,\u201d the Finance chief stated. \u201cI think increased regulation and higher taxes are sufficient. Hopefully, with this, the number of players will diminish.\u201d<\/p>\n