The shutdown of online cockfighting or eSabong has affected financial institutions as the country lost an estimated P5 billion of potential revenues for the year 2022, a bank expert has said.
Philippine Business Bank president Roland Avante, a bank expert with over 30 years of experience, said revenues from eSabong operations goes through accredited banks, which he said typically forge partnerships with gaming centers for remittance to the Philippine Amusement and Gaming Corporation for their cut.
Avante said that while the banking industry is prepared for the withdrawal of a major client, the shutdewon of the $1 billion-industry badly impacted financial institutions. He noted that some banks were even able to expand and put up new branches when eSabong units were still operating because of the income that online cockfighting brought to their coffers.
Avante urged the government to take a second look at the possible return of eSabong to help generate additional revenues, especially as the country continues to recover from the COVID-19 pandemic.
“Everybody has to be given a second chance… As we all know, it is up to the government to take a look at eSabong operations,” he said.
“We are running an economy that needs all the funding that it can get especially now that we are still existing amid the pandemic and we all know that the funds needed by the government to be able to sustain its support to the people,” he added.
“If we are talking about P7 to 8 billion in possible taxes that can help the government, then it is worth considering knowing that the government needs funding for its expenditures,” Avantge said.
The banker also said that the issues surrounding eSabong should be discussed in a wider context as it has an entire ecosystem running it from banks, operators, and bettors. He also said that close regulation needs to be implemented to address public woes regarding the online game.
According to Pagcor, a total of P5 billion was lost due to the shutdown of the industry. The $1 billion industry eSabong was ordered shut down by former President Rodrigo Duterte amid the social issues raised against the operations of online cockfighting operators.
Before its closure, the industry generated about P650 million per month. The shutdown also reportedly affected around 3.2 million Filipinos as it hit micro and small enterprises, like betting sites.
