Philippine Senate President Juan Miguel Zubiri recently called for a comprehensive review of the local online gambling industry (PIGOs) to assess its impact on local residents and decide whether it should continue to operate.
Zubiri pointed out that although the Philippine offshore gaming operators (POGOs) have been controversial due to their involvement in illegal activities and social issues, the operations of the local gaming industry have received little attention. He emphasized that the target group of offshore gaming is foreign gamblers, while local gaming mainly targets Filipino citizens, thus it could also pose social risks.
In a released statement, Zubiri stated: "We must conduct an in-depth review because the negative impacts we are trying to prevent might also occur in the local gaming industry, which would directly affect Filipinos." He specifically highlighted that low-income groups are most vulnerable to the impacts of gambling, hence it is the government's responsibility to assess whether similar regulations or even a ban should be implemented on this industry.
The Senate President further called on the Philippine Amusement and Gaming Corporation (PAGCOR) to conduct a transparent investigation, analyze the pros and cons of the local gaming industry in detail, and disclose relevant data to the public. He questioned: "Can we obtain relevant data from agencies like PAGCOR and the Bureau of Internal Revenue (BIR)? How much can we really earn from this industry? If we are asking these questions about the offshore gaming industry, then the local gaming industry deserves scrutiny as well."
In fact, President Marcos had already recognized the potential negative impacts of the gambling industry on Philippine society and issued an executive order in 2022 to suspend the operation of "online gambling" businesses nationwide. Nevertheless, the local gaming industry continues to operate and is regulated by PAGCOR through a specific license (PIGO License).
PAGCOR introduced the local gaming license in 2018, aimed at regulating the gambling industry within the Philippines. Companies holding this license can operate casinos, sports betting, and online gaming services, which differ from traditional online gambling as local gaming must be linked to physical casino gaming machines or tables, thus it is also known as "remote gaming."
According to PAGCOR statistics, as of June 2023, there are 44 licensed local gaming companies in the Philippines, including well-known enterprises such as Bloomberry Resorts and Hotels, Travellers International Hotel Group, and Thunderbird Pilipinas Hotels and Resorts. These platforms provide Filipino players with services such as live dealers, slot machines, and virtual gambling.
Licensed gaming operators enjoy certain policy benefits, including simplified application processes, reduced regulatory fees, and tax incentives. Applicants must have at least 10 years of experience in the gaming industry and meet a minimum operational capital requirement of 100 million pesos.
The controversy over the local gaming industry continues. Supporters believe that the industry brings significant tax revenue to the government and provides job opportunities. However, opponents argue that the gambling industry may exacerbate social issues, particularly affecting the economic conditions of low-income groups.
With the Senate President's call, it remains to be seen whether the Philippine government will tighten regulations on the local gaming industry or even follow the ban on offshore gaming in the future.
