Pagcor should have a moral fiber in the face of tragic stories linked to online gambling.
The nation’s gambling regulator is treading on dangerous ground.
Philippine Amusement and Gaming Corp. (Pagcor) is the sole body that regulates and licenses gaming activities in the Philippines, including online gambling.
But its heavy reliance on online gaming revenues is compromising its regulatory role. Pagcor officials can be influenced to water down regulatory requirements or circumvent existing rules, as some sitting officials benefit from the earnings of industry players.
The Senate joint committee hearing on Aug. 14, 2025 revealed that revenues from licensed online gambling operators are increasingly dominating the financial lifeline of the government agency.
From 2021 to 2024, Pagcor’s revenues from online gambling rose sharply from 18.98 percent to 50.03 percent. The Senate presentation further showed that Pagcor’s revenues from taxes collected from online gambling companies have increased to 59.59 percent as of June 2025.
Nobody will argue about Pagcor’s revenues that fund government’s socio-civic and national development programs and its role in promoting the tourism industry.
Like any government agency, however, Pagcor should have a moral fiber in the face of tragic stories linked to online gambling. It should not shoot down proposals to totally prohibit online gambling in the Philippines.
Pagcor, instead, favors only stricter regulations on online gambling operators. Such position is linked to the agency’s increasing financial reliance from revenues coming from online gambling operators.
Its financial dependence with industry players it is supposed to regulate is precarious.
Accommodating the interests of online gambling operators, for one, compromises the integrity of government bodies. Ties, friendship and networks formed between regulatory officials and industry leaders whom they are supposed to regulate only empower the latter.
There is a possibility that retired government officials can be absorbed or can work together in the private sector once they leave public service or reach retirement age. This phenomenon is referred as the revolving door theory in public administration.
Pagcor is no stranger from the revolving door phenomenon as a former consultant has been reported to benefit from working with a casino giant prior to the termination of his service.
Reliance on online gambling also defeats the spirit and purpose of universal healthcare.
The resulting addiction from online gambling is a public health problem.
The higher number of online gambling addicts adds pressure to our public healthcare system that is currently struggling to even accommodate demands to address mental health problems of most Filipinos.
Since the country’s public health system is still incapable to fully accommodate mental health problems and addiction rehabilitation, who will then take care of millions of Filipinos suffering from gambling compulsion?
While there are existing privately-owned institutions dedicated for addiction rehabilitation, persons in need of therapy and rehabilitation will either shell out of their own funds or rely on the limited resources donated to these private institutions by their respective donors.
Our lawmakers and government officials should not be blinded by the amount of revenues collected from online gambling operators. Stakeholders should be vigilant of potential accountability issues that may arise from the possible deep ties between Pagcor officials and online gambling industry leaders.
Pagcor has the regulatory power and should exercise it. While the online gambling problem is multi-faceted, the first line of defense should come from Pagcor.
Rectifying existing regulatory loopholes to address the problem should start with the acknowledgment of the proper mandates bestowed on concerned government agencies.
Recognizing the gravity of the problem, the Bangko Sentral ng Pilipinas (BSP) on August 14, 2025 immediately suspended the operations of online gambling platforms available in mobile applications.
The BSP stepped in despite ongoing public consultations and deliberations on how to rectify regulatory loopholes behind the alleged and unfounded link between e-wallets and online gambling addiction.
If the BSP can swiftly act, what’s stopping Pagcor from banning online gambling or enforcing much tougher rules on online gambling?
E-mail: rayenano@yahoo.com or extrastory2000@gmail.com
