The Department of Finance is considering a policy that would ban government-owned or -controlled corporations (GOCCs) from investing in online gambling firms.
The proposed policy comes after the Government Service Insurance System (GSIS), the state pension fund, made a P1-billion investment in DigiPlus Interactive Corp.
Finance Secretary Ralph Recto said the department is investigating the investment. “I think that makes a good policy” to prohibit such investments, he told reporters on the sidelines of the Economic Journalists Association of the Philippines (EJAP) economic forum at the Bangko Sentral ng Pilipinas (BSP).
Recto said he is exploring an increase in taxes on online gambling to boost government revenue. He noted that the tax rate on online gambling could be raised to as high as 40 percent from the current 30 percent without needing new legislation, as the Philippine Amusement and Gaming Corp. (PAGCOR) has the authority to implement the change.
Recto said PAGCOR collects at least P100 billion in gaming revenues annually, with about P50 billion coming from online gambling.
He said only 40 percent of online gaming firms are regulated, with the other 60 percent operating informally.
The BSP is also finalizing new rules to protect consumers from the risks associated with online gambling.
These measures include strict identity verification, daily limits on gambling-related transfers, and tools for users to set spending caps.
Recto said he prefers the BSP’s approach to “make it difficult for young people to gamble through their cell phones.”
He also suggested that government employees be prohibited from online gaming.
