DOF pushing for graphic warnings vs. online gambling addiction

The Department of Finance (DOF) on Wednesday pushed for publishing graphic warnings to address the ills brought about by too much gambling online.

DOF Director Ma. Karla Espinosa put forward the proposal during a hearing of the House Committee on Games and Amusements on bills seeking to ban, if not regulate, online gambling.

“Based on our preliminary analysis, we recognized the potential economic benefits [of online gambling], provided that the associated economic and social costs are mitigated through very stringent regulations," Espinosa said.

"We emphasize the necessity of implementing robust safeguards, including but not limited to the following: the displaying of graphic warning signs of the addictive nature and adverse impacts of gambling, implementing strict measures to prevent minors' access to e-games, as well as implementing paying time or betting cashing-in frequency limits to possibly prevent addiction,” she added.

“We’re also for adopting and disseminating bankers' player exclusion policy currently already being implemented in traditional casinos, prohibiting government officials from participating in e-games, and establishing a dedicated fund to support programs for rehabilitation, among others,” Espinosa said.

Espinosa said the DOF’s latest cost-benefit analysis (CBA) on online gambling was done in August.

The same CBA done by DOF listed the following as direct benefits from gross gaming revenue (GGR) from online gambling:

• franchise tax
• share of the state-regulator Philippine Amusement and Gaming Corporation (PAGCOR) of which there is the national government's share of the Philippine Sports Commission
• Bureau of Internal Revenue (BIR) revenues in the form of withholding taxes and documentary stamp tax
• Pagcor dividends remitted to the government
• estimated share of the Board of Claims from e-games
• the audit fee
• other programs of Pagcor
• direct employment and
• real estate rentals.

As for the economic and social costs of online gambling, DOF said their CBA listed the following:

• foregone household consumption due to addiction
• estimated debt incurred due to addiction
• treatment cost for problem gamblers.

“However, we were not able to provide any estimate for other harms such as psychological harms, health effects, household impact, and criminal offenses related to online gambling,” Espinosa said.

The Department of Economy, Planning, and Development (DEPDev), for its part, stated that online gambling makes only a minimal contribution to the economy.

“The DepDev supports either a complete ban or prohibition of online gambling or if not, a strict regulation of the industry," DEPDev Director Desiree Joy Narvaez said.

"This is considering its minimal contribution to the economy. We recognize it has potential benefits, but in our estimate, we consider the contribution minimal at around 0.37% of GDP (Gross Domestic Product),” she added.

“In our computation, as with the DOF, we included direct contributions as well as indirect benefits that accrue to the economy. We deem that this is minimal and will be offset by the significant social costs,” Narvaez said.

The DepDev, however, conceded that it has yet to quantify “a number of literature” which analyzes the social cost of online gambling.

“Given its minimal contribution to the economy and visibly the significant social costs, we do support either its complete prohibition or a stricter regulation,” Narvaez added.

Back in August, PAGCOR chairman Al Tengco reported to Congress that online gambling transactions had dropped by 50% just six days after the Bangko Sentral ng Pilipinas (BSP) prohibited e-wallets from linking to online gaming platforms.

On Wednesday, PAGCOR Assistant Vice President Jessa Fernandez revealed that PAGCOR’s projected revenue for the year from online gambling at P60 billion won’t be reached due to the BSP policy prohibiting e-wallets from linking to online gaming platforms.

“For the PAGCOR income from January to September 2025, our total gaming income is P40,57 billion. Based on our projections during the first half of the year, we will hit P60 billion. However, starting in August 2025, we felt a sharp decline in income. The decline was up to 49%,” Fernandez said.

“So we are expecting a decrease compared with our initial projection of P60 billion,” she added. –NB, GMA Integrated News