Philippines President Marcos Signals Willingness to Reassess Online Gambling Tax Policy Amid Industry Scrutiny
President Ferdinand Marcos Jr. signaled his openness to reviewing and potentially limiting the online gambling in the Philippines, citing the need for balanced regulation that protects the country’s economic interests without compromising public welfare and international cooperation. Thus, he is Open to Taxing and Limiting Online Gambling in the Philippines as long as it does not hurt businesses.
Speaking to reporters on Monday, President Marcos acknowledged ongoing discussions within his administration and with lawmakers about the impact of existing taxes on Philippine Offshore Gaming Operators (POGOs) and other online gambling platforms.
“We are not closing the door on the idea of adjusting or limiting the taxation regime on online gambling,” Marcos said. “We need to ensure that our tax policies do not drive legitimate operations away while still addressing concerns about crime, social costs, and international scrutiny.”
Online Gambling in the Philippines is a Controversial Topic
Online gambling has been a significant, though controversial, contributor to Philippine revenues in recent years. However, the industry has also faced mounting pressure due to reports linking some operators to criminal activities, including human trafficking, cyber fraud, and money laundering.
Under the current regime, POGOs are taxed at a rate of 5% on gross gaming revenue, with foreign workers subject to a 25% withholding tax. Critics argue that high tax rates have pushed some companies to operate illegally or to relocate to more lenient jurisdictions.
Marcos Open to Taxing and Limiting Online Gambling in the Philippines but would Face Opposition
Finance Secretary Ralph Recto, while cautious, confirmed that the Department of Finance is open to reviewing the current framework. “If a more targeted or limited taxation policy will help bring transparency and encourage lawful operations, it is worth studying,” he said in a separate briefing.
Some lawmakers, however, remain wary. Senator Risa Hontiveros warned against any move that could be interpreted as coddling an industry she describes as “problematic at its core.” She has called for a complete phaseout of POGOs, citing their alleged ties to organized crime.
President Marcos emphasized that any tax adjustment must be accompanied by stricter enforcement and coordination with law enforcement agencies to weed out bad actors.
“Our objective is to strike a balance to support legitimate business, generate revenue, and protect the integrity of our legal and financial systems,” he said.
The administration is expected to present a formal review of online gambling taxation and regulation to Congress before the end of the year. Stakeholders from the gaming industry, labor groups, and civil society are being consulted in the process.
As the debate continues, the Philippines remains at a crossroads: whether to maintain a lucrative but contentious industry or recalibrate its role in the country’s evolving digital economy. Interestingly enough, this announcement comes as the sports betting industry in the U.S. is in jeopardy after the “Big Beautiful Bill” was signed into law last week.
Current Gambling Laws in the Philippines
The Philippines has a complex regulatory structure governing gambling, overseen by multiple agencies with differing mandates.
The Philippine Amusement and Gaming Corporation (PAGCOR), a state-run body, serves as both regulator and operator of casinos and other gaming establishments. PAGCOR issues licenses to private casinos, gaming hubs, and recently, to online gambling operators serving overseas clients, it is more commonly referred to as POGOs.
In contrast, local online gambling services (those catering to Filipino residents) are more tightly regulated or outright prohibited, depending on the activity and the platform.
Online gambling operations under the POGO regime are allowed to offer betting services to clients outside the Philippines, but they are not permitted to cater to Filipinos. These companies must secure licenses from PAGCOR and comply with strict documentation, tax, and security requirements.
Philippines Republic Act No. 11590
In 2021, the Republic Act No. 11590 was enacted to impose a stricter tax regime on POGOs, which included:
- A 5% gaming tax on gross revenues.
- A 25% withholding tax on salaries, wages, and other compensation for foreign employees.
- Mandatory contributions to regulatory and law enforcement funds.
Additionally, the Anti-Money Laundering Council (AMLC) monitors financial flows within the gambling industry, and the Bureau of Immigration works to ensure foreign workers in the POGO sector are properly documented.
Despite these legal frameworks, enforcement challenges and allegations of criminal activity have led to calls for reform or outright bans on online gambling operations, particularly POGOs.
The Marcos administration now finds itself navigating between two competing priorities: reaping the economic benefits of regulated online gambling and responding to rising public and international concern about its broader social and legal implications.
The President has yet to outline a specific proposal, but a comprehensive review of the law and taxation policies is expected to be presented to Congress later this year.
