MANILA, Philippines – Finance Secretary Ralph Recto said the proposed tax on online gaming may happen this year as more lawmakers throw their support behind any measure that would curb gambling addiction in the country.
Recto told the Inquirer that Congress may pass a bill taxing online games “within the year,” adding that the Department of Finance (DOF) has been in touch with the Philippine Amusement and Gaming Corp. (Pagcor) to assess the potential revenues that can be raised from such an imposition.
READ: Robust e-games buoy Pagcor earnings
“My staff is coordinating with Pagcor and will have visibility soon,” he added.
The proposed levies on e-games may bode well for the fiscal consolidation plan of the Marcos administration, which is dealing with a budget hole that is projected to hit P1.6 trillion this year, or equivalent to 5.5 percent of the country’s gross domestic product (GDP).
As it is, the typical public aversion toward new taxes has prevented the government from cutting its budget deficit at a much faster rate, resulting in accumulation of more borrowings. At their last meeting in June, economic managers trimmed the state’s revenue target for 2025 to P4.5 trillion, from P4.6 trillion previously.
But unlike other tax measures, the planned imposition on e-games may gather support from lawmakers who have voiced their concerns about the risks and harms of online gambling. Bills have been filed ahead of the 20th Congress to either impose a total ban on e-gambling or restrict public access by prohibiting the use of e-wallets for betting.
The last two weeks also saw the Catholic Church voicing strong concerns over the lack of government safeguards to keep minors out of the e-gambling market and the use of celebrities to promote online casinos.
Well-studied plan
Meanwhile, Malacañang said President Marcos would not object to the DOF’s proposed tax on online gaming operators, as long as the plan is well-studied.
Data from Pagcor showed that the gross gaming revenue (GGR) of the e-games and e-bingo sector amounted to P51.39 billion in the first quarter. This accounted for 49.36 percent of the local gaming industry’s total GGR of P104.12 billion during the period, knocking out brick-and-mortar casinos as the top growth driver of the Philippine gambling industry.
Pagcor Chair and CEO Alejandro Tengco previously said the stunning shift was driven by changing preferences of punters, who are now into “digital, on-demand gaming experiences, accelerated by greater access to mobile technology.”
Tengco expects total gambling-related revenues to grow by 15 percent in 2025 to between P450 billion and P480 billion, from the record GGR of P410.5 billion in 2024. INQ
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