The Department of Economic, Planning and Development (DEPDev) of the Philippines today expressed its stance at a congressional hearing, supporting a total ban or strict regulation of the online gambling (iGaming) industry, emphasizing that the industry contributes minimally to the national economy but incurs significant social costs. This stance is seen as a key signal for the direction of Philippine online gambling legislation.
According to the official position document submitted by DEPDev to the House of Representatives, the online gambling industry is projected to contribute only about 81.6 billion pesos to the actual GDP of the Philippines in 2024, accounting for 0.37%.
Desiree Joy O. Narvaez, the Director of Socio-Economic Planning, noted: "From a macroeconomic perspective, this figure is negligible, but the social costs it brings, such as addiction, family breakdown, and financial crimes, are extremely high." Therefore, the department clearly supports "a total ban or the implementation of stricter regulatory measures."
With the frequent occurrence of online gambling addiction and cross-border fraud cases, multiple related bills have been submitted to Congress. President Ferdinand R. Marcos Jr. has prioritized online gambling legislation, and the Department of Finance (DoF) also proposed higher taxes and stricter regulations in July.
❗️In this context, the role of DEPDev is particularly crucial.
As the core institution responsible for assessing economic and social impacts, DEPDev's analysis results can directly influence policy decisions.
As stated in the document signed by Socio-Economic Planning Minister Arsenio M. Balisacan: "People are more inclined to engage in online gambling due to its convenience, anonymity, low cost, and diversity. We support regulating the link between online gambling and digital finance through legislative means to avoid the formation of a grey economic cycle."
In August this year, the Central Bank of the Philippines has requested e-wallet applications to remove direct links to gambling sites, showing that various regulatory levels of the government are gradually tightening the online gambling ecosystem.
❗️Although the Department of Finance agrees with DEPDev's stance and supports stricter regulation of the industry, it believes that a "total ban" might create a regulatory vacuum and does not support a complete prohibition.
It can be anticipated that DEPDev's analysis and policy recommendations may become the core basis and turning point for the reform of Philippine online gambling legislation, also marking a fundamental shift in the country's attitude towards iGaming regulation from "revenue-driven" to "social risk-oriented".
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