Recto firmly against online gambling ban

By Aubrey Rose A. Inosante, Reporter

FINANCE SECRETARY Ralph G. Recto is opposing a total ban on online gambling, saying the sector can benefit the economy if its social harms are curbed.

At the same time, Mr. Recto said he supported the Department of Economy, Planning, and Development’s (DEPDev) push for stricter regulations on the electronic gaming (e-gaming) industry.

In a Viber message to BusinessWorld, Mr. Recto said the Department of Finance (DoF) remains firm in its position favoring tighter oversight of the e-gaming industry over a blanket ban.

“(The DoF’s position) is based on our cost-benefit analysis that shows that the industry can have a net benefit impact on the economy if certain negative externalities are controlled through more stringent regulations,” he said on Oct. 31.

Mr. Recto’s response followed DEPDev’s statement last month supporting tighter regulation and a possible ban on online gambling, as the sector’s huge social costs outweigh its “minimal” economic contribution.

DEPDev estimates showed the e-gaming industry contributed just P81.6 billion or 0.37% to real gross domestic product last year.

Online gambling has emerged as a growing concern in the Philippines amid rising cases of addiction, prompting lawmakers to file multiple bills in Congress seeking to either ban or tighten its regulation.

“We reiterate that DoF will follow the policy direction of the President. We will implement the administration’s stance on this issue,” Mr. Recto said.

Mr. Recto called for a “holistic” approach to gambling regulation, one that imposes stringent safeguards without tipping into overregulation.

This would encourage legitimate industry players to remain compliant and contribute their fair share of dues, he said.

Sought for comment, the Philippine Amusement and Gaming Corp. (PAGCOR) said it does not support a total ban.

“Our focus remains on regulating the entire Philippine gaming industry and not on any specific segment,” PAGCOR told BusinessWorld in a Viber message on Oct. 29.

In the first seven months, PAGCOR said it collected P37 billion from e-gaming platforms.

In October, Cavite Representative and Chairman Antonio A. Ferrer said the House Games Committee will release a technical report by yearend to guide a consolidated bill proposing either a total ban or stricter industry rules.

The Legislative-Executive Development Advisory Council included the proposed online gambling regulation as one of its 44 priority measures, though specific details remain limited.

‘TRIPLE BLOW’
Analysts warned that delays in the government’s definitive stance on online gambling risk worsening addiction and allowing illegal operators to flourish.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said indecision invites a triple blow: economic uncertainty for gaming firms, social harm to minors, and governance gaps that erode public trust.

“The longer we wait, the harder it gets to clean up the mess,” he said in a Viber message.

Mr. Ravelas said there’s no need to shut down online gambling.

“Clear rules, strong safeguards, and fast action will protect kids and keep the economy moving,” he added.

Foundation for Economic Freedom President Calixto V. Chikiamco said regulating online gambling is better than a ban.

“Banning will only drive online betting underground where government cannot get its share of tax revenues and where consumers are more exposed to exploitation,” Mr. Chikiamco said in a Viber message.

“It will deter investments in online gaming and allow gray market operators more freedom until regulations are fixed and stable.”

Digital Pinoys national campaigner Ronald B. Gustilo said the government should focus its effort on eradicating illegal online gambling.

“The illegal activities connected to online gambling — allowing minors to play, predatory gameplay design, low betting amount, refusal to pay winnings — are all connected to illegal online gambling,” he said in a Viber message.

“More Filipinos are at risk of worsening addiction while the government is also losing more revenue because the illegal operators make gambling more enticing,” he added.