The Department of Finance (DOF) is considering stricter regulations and potentially higher taxes on online gambling, according to Finance Secretary Ralph Recto.
Recto said the Philippine Amusement and Gaming Corp. (PAGCOR) could raise its fees and charges on online gaming operators.
PAGCOR imposes a 30-percent fee on electronic gaming, with the Bureau of Internal Revenue collecting an additional 5 percent, bringing the total tax to about 35 percent of gross gaming revenue.
Recto suggested increasing taxes by about 10 percent of gross gaming revenue to generate an additional P20 billion annually for the government.
Beyond taxation, the DOF is also exploring other regulatory measures, he said.
These include banning government officials from online gambling, requiring warnings about gambling risks similar to cigarette labels and using the national ID system to prevent individuals under 21 from accessing online gaming sites.
Recto floated the possibility of mandating online gaming operators to list publicly to increase transparency regarding their ownership.
The Bangko Sentral ng Pilipinas (BSP) earlier issued a draft circular on the “Regulations on Online Gambling Payment Services” to promote responsible digital financial practices and mitigate associated risks.
Key provisions include removing links to online gambling websites; creating separate accounts for online gambling; imposing a daily limit on the balance users can utilize for gambling; and prohibiting lending options for gambling account holders.
