Philippines weighs mandatory stock listing, higher taxes for online gambling firms

The Philippine government is considering requiring online gambling firms to list on the Philippine Stock Exchange (PSE) and raising taxes on their operations as part of a broader effort to tighten oversight of the fast-growing industry.

Finance Secretary Ralph Recto said on Thursday that the government is studying a proposal to link the issuance of gaming licenses by the Philippine Amusement and Gaming Corp. (PAGCOR) to mandatory stock exchange listings.

“We can force them to list so we know who the people are behind it. It becomes more transparent,” Recto told Inquirer.

The move would subject online gambling companies to strict disclosure rules that govern publicly listed firms, including regular reporting on ownership structures, finances, and material operations.

“It might even be good if all the licenses issued by [Philippine Amusement and Gaming Corp.] to online gaming, maybe, should also be required to list on the stock exchange. That’s another thing that we’re looking at,” he added.

In addition to public listing, Recto said the government may also increase the taxes and fees levied on online gambling firms by up to 10%, a change that could generate an estimated PHP20 billion ($349.5 million) annually.

“We may increase that even further. We’re studying what that increase should be, but we need more regulation,” Recto said.

Currently, e-gaming operators are required to remit 30% of gross revenues to PAGCOR and pay an additional 5% franchise tax to the Bureau of Internal Revenue.

Recto warned, however, that overly aggressive policies could drive licensed operators underground and reduce regulatory oversight. “If you ban it, everything will become illegal,” he said.

DigiPlus Interactive Corp., a licensed operator behind BingoPlus and ArenaPlus, expressed support for “smart, balanced regulation,” but cautioned against policy overreach.

“We believe regulation is the path to player protection,” said DigiPlus chair Eusebio Tanco. “It’s the only way to safeguard players, preserve jobs, and close the door on illegal, underground platforms that operate without any oversight.”

DigiPlus shares plunged 29.96% on Thursday, the worst single-day performance in its history, amid growing regulatory uncertainty. The stock is now down 70% from its June 11 high of PHP65.3. Shares of Bloomberry Resorts Corp., a new entrant in the e-games segment, also fell 5.62% to PHP4.03.

“The said policies, if implemented, will pose as barriers to customer entry,” said Japhet Tantiangco, research head at Philstocks Financial Inc. “This, in turn, would limit online gaming firms’ revenue generation.”

The proposals come amid intensifying political pressure to rein in the online gambling industry. A bill filed by Sen. Sherwin Gatchalian seeks to tighten regulations to address rising gambling addiction, while the central bank is moving to limit e-wallet use for betting.

President Ferdinand Marcos Jr. is reviewing calls for a full ban on online gambling, the Presidential Communications Office said earlier this week.