The Philippines keeps searching for ways to manage its online gaming industry.

Key Points

• Philippine Finance Secretary Ralph Recto talked about a possible tax plan for online gaming in the country.
• Higher payments to the Philippine Amusement and Gaming Corporation (PAGCOR) were one option suggested by Recto.

Rising Focus on Online Gaming Rules

Discussions inside the Philippines about rules for online gaming have increased, with Finance Secretary Ralph Recto saying that the Department of Finance is looking at a General Tax Amnesty system plus more controls for online gaming in the nation. This action comes soon after news appeared that the Philippine Senate will start an investigation into how online gaming affects Filipinos. Committee Chair Senator Erwin Tulfo is leading this review, and he works together with the Catholic Bishops’ Conference of the Philippines because both groups want a total stop to online gaming in the country.

Recto made clear that there are no fresh tax plans now, but sharper rules are “ready and waiting for approval.” He pointed out that a General Tax Amnesty and Online Gambling Tax law will be different from a bill that Congress stopped before, and he hopes the new rules will come before year-end. Recto added, “Before anything, we must get the agreement of the President or Cabinet first.” Good to know, the Bangko Sentral ng Pilipinas and other money-related groups in the country have started new controls to reduce dangers from online gaming.

Raising PAGCOR Fees and Limiting Government-Owned Company Involvement

Recto also described the steps of Philippine President Ferdinand Marcos Jr to control the problem and the work PAGCOR does as a regulator. He recommended raising PAGCOR’s taxes and fees for online gaming, saying, “For example, if PAGCOR’s fee rate is 30 percent, maybe we can consider moving this up to 35 or 40 percent, or higher. Still, we will first ask PAGCOR, as they must put changes into action.” He also accepted the proposal that companies owned or led by the Government should not be allowed to invest in online gaming.