Philippines' Finance Minister Ralph Recto recently stated that the government is brewing a comprehensive taxation on the online gambling industry and plans to incorporate it into a high-intensity financial regulatory system. This reform aims not only to rectify the industry's disorder but also hopes to curb gambling addiction through "high tax rates".
Recto pointed out that the current online gambling is in a regulatory blind spot, with platforms lacking transparency and difficult to monitor capital flows, posing risks to social structure and fiscal order. He proposed to levy a special consumption tax on online gambling, akin to tobacco and alcohol, as a governance tool.
He also revealed that the government is studying restrictions on players' daily deposit amounts and gaming time to combat addictive behavior. Additionally, platforms are expected to display "high-risk warning labels" to enhance user awareness.
Moreover, Recto emphasized the push to prohibit government officials from participating in any form of gambling, whether online or offline, stating that "public officials must lead by example in obeying the law".
Facing the expansion trend of online gambling, the Finance Department stated that "high taxes are just the first step", and more systematic measures to combat and regulate will follow.
