In late July 2025, Philippine Finance Secretary Ralph Recto unveiled one of the most sweeping regulatory shifts under consideration for the country’s online gambling sector. During Post‑SONA discussions in San Juan City, Recto revealed that the government is exploring raising license fees on e‑gaming platforms from the current 25 percent up to 30 percent, 35 percent—or even 40 percent of gross gaming revenue (GGR).

Recto emphasized an important caveat: “If it’s too high, baka naman lalo lumago din ‘yung illegal—it might lead to a rise in illegal operations,” he cautioned, adding that authorities are studying the implications alongside PAGCOR, the Philippine Amusement and Gaming Corporation. While confirming that integrated resorts currently pay a reduced 25 percent rate on online gaming revenues, Recto noted that the fee hike would specifically affect domestic e‑games operators—a rapidly expanding segment of the market.

Surging Revenues: Online Gambling Now a Power Player

The timing of this proposal is significant. PAGCOR data shows that in the first half of 2025, the Philippine gaming industry generated total GGR of approximately PHP 214.75 billion, up 26 percent from the previous year. Electronic gaming—including e‑bingo and internet‑based platforms—accounted for 53.5 percent (PHP 114.83 billion) of total GGR, while regulated land-based casinos contributed PHP 93.36 billion, and government-run facilities accounted for PHP 6.56 billion.

This explosive growth underscores why regulators are keen to capture a larger share—yet also why they face scrutiny regarding public health and social risks.

Recto also indicated that the DOF and PAGCOR are exploring non‑fiscal reforms, including:

• Mandatory listing of online gambling operators on the Philippine Stock Exchange to enhance transparency over ownership and financials. As he explained: “Maybe... all the licenses issued by PAGCOR to online gaming... should also be required to list on the stock exchange”.

• Limitations on e‑wallet usage for gambling transactions.

• Higher minimum cash-in thresholds (e.g. P10,000), though industry figures warn this could push players to unregulated operators.

Policy experts underscore the precarious balance the state must strike. Alex Czajkowski, CEO of Players Today, insisted that regulation should inspire—not erode—institutional confidence: “Having a robust and active regulatory body… shows how serious the Philippines is about building a healthy and thriving industry”.

On the other hand, some warn that heavy-handed taxation or outright bans may backfire—fueling underground gambling operations, depriving the state of revenues, and damaging jobs.

Recto himself put it plainly: “I am not in favor of gambling... My advice: do not gamble. But if people do, we’d rather regulate it than they go to illegal”.

What It Means for the Industry

If adopted, a license fee of 35 percent or 40 percent could substantially raise annual government receipts—but it could also reshape the competitive and operational landscape for licensed operators. PAGCOR’s enforcement role may expand, especially given concerns over addiction, illegal gambling (estimated to be 60 percent of online activity), and advertising exposure via mobile wallets and social media.

For industry stakeholders, compliance costs would increase sharply, but the mandatory public listing proposal could also usher greater investor scrutiny and governance reforms.