Philippines Plans to Raise Taxes and Fees for Online Gambling
Philippine Finance Secretary Ralph Recto has announced that the government is considering increasing the tax on online gambling from the current 25% to between 30% and 40% of gross gaming revenue (GGR).
Why the Tax Hike?
The government aims to boost revenue from the online gambling sector while maintaining a balance between regulation and cracking down on illegal operators. According to Recto, around 60% of iGaming activity in the Philippines is currently unregulated or illegal.
In a statement, Recto noted that while a tax increase is being considered, the government is cautious not to push players toward the black market:
“If the rate is too high, it might drive operators underground. We’re studying this together with PAGCOR,” he said.
Current Rates and Projected Revenues
| Category | Tax Rate (GGR) | Expected Revenue in 2025 |
|---|---|---|
| Land-based Casinos | 25% | ₱100 billion |
| Online Gambling | 25% (proposed 30–40%) | ₱100 billion |
Target: $3.49 Billion in Revenue
According to Recto, the government hopes to collect up to ₱200 billion ($3.49 billion) in total gaming revenue in 2025, combining both online and land-based operations.
Strengthening Regulatory Measures
In addition to tax increases, the government is exploring further regulatory measures, including:
- Restrictions on account funding times;
- Limiting access via digital wallets;
- Stricter control of advertising on social media and e-wallet platforms.
Recto emphasized:
“I’m personally against gambling. I don’t play, and I don’t support it. But if people are going to gamble, it’s better that they do it legally rather than through illegal channels.”
Talk of a Ban
The Philippine Department of Health (DOH) has labeled online gambling a public health threat. In response, President Ferdinand Marcos Jr. has committed to reviewing proposals for a possible ban.
Some lawmakers support a full ban, citing rising gambling addiction, especially fueled by aggressive advertising and ease of access through digital wallets.
Licensed Operators Respond
Licensed online gambling operators have urged the government to avoid a blanket ban and instead focus on tighter regulation. They argue that prohibition would only drive more users to illegal platforms.
These operators have expressed willingness to collaborate with PAGCOR in crafting updated regulatory guidelines.
Conclusion
The Philippines is at a critical juncture in reshaping its online gambling framework — from higher taxes to stricter rules. The core goal is to establish a legal, transparent, and well-regulated environment while curbing the growth of the black market.