Internet casinos are already reeling from months of COVID-19 shutdowns

China-centric online casinos hit by new Philippine tax

President Rodrigo Duterte signed the pandemic relief law earlier this month.
2020-09-30
Reading time 36 seg
A newly-enacted pandemic relief law has imposed a 5% franchise tax on offshore gaming operators’ gross bets, a change from the current franchise tax imposed on gross gaming revenue.

Philippine Amusement and Gaming Corp. Assistant Vice President Jose Tria said the law signed by President Rodrigo Duterte earlier this month, imposes a 5% franchise tax on offshore gaming operators’ gross bets, which translates into more losses for China-centric online casinos in the Philippines.

"That’s a change from the current franchise tax imposed on gross gaming revenue," Tria said. "This new formula will surely result in serious losses for Philippine offshore gaming operators; we expect them to close shop."

Online casinos are already reeling from months of shutdown amid the pandemic-induced lockdown, with 40% of operators still closed, based on a list from the gaming authority, Bloomberg reports. Demand for office spaces could take a “short-lived” hit as offshore gaming operators leave, the Philippine central bank said.

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