Finance Secretary Ralph Recto said he will not move to impose a total ban on online gaming, but is pushing for a 10 percent tax hike to generate an additional P20 billion in annual revenue from the sector.
He said he also supports stricter regulation to crack down on illegal operations.
On Thursday, Recto proposed that licensed online gaming firms be “forced” to list shares on the Philippine Stock Exchange (PSE) to enhance oversight and transparency.
About 60 percent of the online gaming market operates illegally, while the tax-paying 40 percent generates P200 billion in gross gaming revenue, Recto said.
Historically, only 5 percent of the sector is considered legitimate.
“There are many ways to increase both taxes and fees, and to enforce tighter regulation,” Recto said in a recent press briefing.
He added, “We could leave it to PAGCOR (Philippine Amusement and Gaming Corp.), since it can independently raise fees and charges from online gaming.”
Currently, PAGCOR levies a 30 percent franchise tax on online gaming, and the Bureau of Internal Revenue collects an additional 5 percent. Of the ₱200 billion revenue, at least 38 percent goes to taxes.
“We may increase that even further. We’re studying what that increase should be. And we need more regulation,” he emphasized.
Rather than implementing a ban, Recto pushes for robust controls—such as requiring gamers to use national IDs to ensure minors are barred from participating.
For 2025, he expects gross gaming revenue to exceed P200 billion. A 10 percent tax hike, he said, would guarantee at least P20 billion in additional revenue.
Addressing concerns that higher taxes might drive operators underground, Recto floated the possibility of requiring all PAGCOR-licensed firms to list on the PSE.
“That’s another thing we’re looking at. We can force them to list so we know who’s behind them. It becomes more transparent,” he said.
Recto reiterated that banning online gaming would not be revenue-positive for the government.
“I don’t think it should be banned. I believe that with better regulation and higher taxes, we’re covered,” he said.
He concluded that the combination of policy reforms and stronger enforcement through police and cybersecurity measures can effectively shut down illegal operations.
