Revenue Risk

In recent years, the Philippine economy has found an unlikely yet significant ally in online gambling.

Regulated online gaming—particularly through legitimate licensees under the Philippine Amusement and Gaming Corporation (PAGCOR)—has not only generated billions in government revenue but also created thousands of jobs and fueled related industries such as IT, hospitality, and real estate.

Yet, amid mounting concerns over illegal activities, social costs, and criminal syndicates exploiting the sector, some sectors are calling for a blanket ban on online gambling.

This is a dangerously shortsighted approach that risks damaging an industry that, if properly regulated, can continue to benefit the country in measurable and sustainable ways.

Banning online gambling outright would be an economic misstep. In 2024, PAGCOR reported P410 billion in gross gaming revenues, with a significant portion derived from regulated online gaming operators.

These revenues help fund government programs in health, education, and infrastructure. Shutting down this stream would not only leave a massive budget gap but also push legitimate operators to close shop, resulting in job losses, reduced foreign investments, and a decline in ancillary economic activities.

More troubling is the reality that prohibition does not equate to eradication. History has shown—both locally and globally—that when a popular yet controversial activity is banned, it does not disappear; it simply goes underground.

Illegal gambling operators thrive in the shadows, free from the taxes, regulatory oversight, and responsible gaming safeguards that legitimate operators adhere to. A ban would likely embolden criminal syndicates, further endangering vulnerable individuals and draining law enforcement resources.

The answer, therefore, is not a ban—but stronger, smarter regulation.

PAGCOR and law enforcement agencies must be empowered and resourced to crack down on unlicensed operations. A centralized monitoring system, rigorous background checks for licensees, stricter sanctions for violators, and international cooperation to address cross-border crimes are all essential components of a responsible and effective regulatory framework.

Equally important is public education to promote responsible gaming and awareness of the dangers of illegal online gambling platforms.

The digital economy is here to stay, and online gambling—when managed with integrity and transparency—can be a responsible contributor to national development.

The Philippines should not retreat from regulating this industry; it should lead in setting the gold standard for how it is governed.

Let’s be clear: the issue isn’t online gambling per se—it’s illegal and unregulated gambling that breeds abuse.

Instead of dismantling a legitimate industry that benefits the country, we should focus on rooting out the bad actors and tightening the system that allows them to operate.

In a time when every peso counts and economic recovery remains fragile, the Philippines cannot afford to throw the baby out with the bathwater.

Smarter regulation—not prohibition—is the way forward.