Senator Gatchalian Opposes Total Online Gambling Ban, Urges Immediate Regulatory Overhaul

Philippine Senator Sherwin Gatchalian has firmly ruled out a complete ban on online gambling, warning that such a move would simply push the industry further underground, making it significantly harder to regulate. Speaking in an exclusive interview with AGB, Gatchalian underscored the need for urgent and stricter regulations rather than prohibition, pointing to the challenges other countries like China have faced in trying to eradicate online gambling altogether.

“The reality tells us that it’s nearly impossible to completely ban online gaming, because it will just go underground…We might as well regulate it,” said Gatchalian, emphasizing that enforcement, not elimination, is the more pragmatic path forward. He referenced China’s failure as a cautionary tale. “China is very strict with the internet, but even in China, they have underground online gambling. So in other words, even advanced countries like China, which heavily regulate the Internet, cannot completely ban online gambling. And that’s what I fear will happen in the Philippines.”

In light of these concerns, Gatchalian has filed a bill in the Senate aimed at introducing comprehensive regulation of online gambling platforms. His proposed legislation seeks to raise the minimum legal gambling age from 18 to 21, tighten Know Your Customer (KYC) protocols, enforce minimum betting amounts, and eliminate the direct connection between e-wallets and gambling websites.

Gatchalian’s push for reform stems in large part from the moral and social implications of widespread online gambling, particularly among Filipino youth. “A lot of our high school students have been observed playing online gambling because it’s so easy to register by pretending they are over 18,” he said. “That’s why I raised the age from 18 to 21.” Drawing from his discussions with school officials and parents, he expressed alarm over the moral degradation linked to youth exposure. “We have to always protect the youth from gambling, from vices, from drugs, from crime,” he said. “Once immoral activities prey on the youth, then we have to make sure we stop them.”

Although both Gatchalian and the Philippine Amusement and Gaming Corporation (PAGCOR) agree that banning the industry outright is not realistic, they diverge on the economic justification for maintaining it. PAGCOR has cited more than PHP100 billion (USD $1.8 billion) in annual revenue and approximately 32,000 direct jobs created by the online gaming sector as reasons to keep it operational. But Gatchalian rejects that rationale. He argues that online gambling is eating into the profits of traditional casinos. “It’s unfair for brick-and-mortar casinos, which invest in hotels, auditoriums, and shopping malls, to compete with online operators who just rent a room and install servers,” he said.

He also noted that during Senate hearings, PAGCOR’s chairman admitted there has indeed been a cannibalization of revenue from land-based casinos due to the growth of online platforms. Gatchalian believes that restricting online gambling could redirect some of that lost income back to the physical establishments. He further asserted that economic arguments should never override moral imperatives. “In my personal opinion, moral values are supreme compared to what the country will be making.”

Gatchalian also took aim at PAGCOR’s dual role as both operator and regulator, a structure he views as inherently flawed. “This is one fundamental flaw in the Philippines,” he said. “In a perfect world, PAGCOR should be very strict with regulation, but they tend not to be because they are also making money from these entities.” As a remedy, he proposed establishing a new and independent regulatory authority that would be exclusively responsible for overseeing the gambling industry. “If PAGCOR wants to be an operator, that’s fine. But let’s have a new regulator that will purely regulate all gaming activities in the Philippines,” he suggested.

His office is currently working on a legislative bill that would lay the foundation for this new regulatory framework. He emphasized that accountability should extend beyond operators to include regulators themselves. “If PAGCOR fails to fulfill its mandate, it should face consequences. Regulatory accountability should apply not only to operators but also to the regulators themselves.”

While the creation of a new agency is still in the pipeline, Gatchalian urged PAGCOR to act swiftly in tightening enforcement. He said the agency already possesses the authority to implement immediate reforms, such as increasing the legal gambling age, mandating higher minimum bets, strengthening KYC requirements, and severing direct links between e-wallets and gambling platforms. “Even without a law, PAGCOR can actually do this already. They are empowered to regulate,” he pointed out.

As for gaming taxes, Gatchalian expressed openness to raising them, but cautioned against setting the rate too high. “We need to also make sure that it’s not too high, that they will go underground, but it’s not too low, that they will make a tremendous amount of money,” he said. His proposed bill includes penalties for regulatory bodies that fail to enforce these standards. “It’s not only the players or the operators. The regulators themselves must also be held accountable,” he added.

Reflecting on the government's previous crackdown on Philippine Offshore Gaming Operators (POGOs), Gatchalian cited it as a largely successful move, stating that “the country has gotten rid of POGOs by maybe 95 percent.” He credited the ban with improving public safety and contributing to the Philippines’ removal from the Financial Action Task Force’s grey list. “That was the missing part of cleaning up our financial system,” he explained. “It improved the reputation of the country and helped restore peace.”

However, he warned that unless PAGCOR significantly improves its oversight of online gambling, the country could repeat the mistakes made during the POGO era. “If PAGCOR wants to retain online gambling, then they should regulate. They should make sure our youth are not gambling. They should make sure that addiction is treated.”

Gatchalian also highlighted the critical role of financial institutions in this regulatory ecosystem. He supports initiatives by the Bangko Sentral ng Pilipinas to impose stricter controls on how e-wallets interact with gambling sites. “We’re trying to prevent e-wallets being a gateway to online gambling,” he said. While acknowledging that cryptocurrencies such as Bitcoin are not yet widely used among lower-income Filipinos, he signaled that crypto-based transactions would also need regulation in the future. “We’ll get there later on,” he said, “but for now, our focus is on protecting ordinary Filipinos who are more vulnerable.”

As President Ferdinand Marcos Jr. prepares to deliver his upcoming policy address on July 28, Gatchalian said he could not predict whether online gambling will be a priority for the administration. “I can’t really say what the President will say about online gambling,” he said. “But I know that they are studying how to be stricter with regulation.”

For Gatchalian, the clock is ticking. “If PAGCOR does not act fast, and the public becomes angry again, the pressure for a total ban will grow. They must not wait for another outcry like what we saw with POGOs.”

By fLEXI tEAM