Why a Philippines iGaming ban may backfire: Expert
As lawmakers and regulators in the Philippines move to tighten control over online gambling, a growing policy divide has emerged between those calling for an outright ban and others advocating for smarter, stricter regulation.
In a LinkedIn post, Marie Antonette Quiogue, Co-Founder and CEO of Arden Consult, warns that banning the activity entirely could backfire – driving it underground, weakening oversight, and undoing progress made under the current legal framework.
“In recent weeks, the Philippine Congress has seen a surge of proposed legislation aimed at addressing online gambling—some bills advocating for outright bans (Senators Pia and Allan Cayetano’s, Joel Villanueva’s) while others propose stricter regulations within the existing legal framework overseen by PAGCOR (Senator Sherwin Gatchalian’s),” Quiogue said. However, she emphasised that any legislative measure must be built on “accurate knowledge, comprehensive data, and global perspectives“.
According to Quiogue, “An informed and nuanced legislative approach is crucial for addressing the genuine challenges posed by online gambling.”
The current regulatory framework under PAGCOR
Quiogue defended the Philippine Amusement and Gaming Corporation (PAGCOR) framework. “As someone who deals with PAGCOR regularly—I can attest that the existing system includes rigorous processes and detailed rules designed to ensure transparency, fairness, and security in online gaming operations.” She described how regulations have evolved across administrations into “a coherent and enforceable regime” that is updated to match technology, market shifts, and risk.
“I can say with confidence that our framework is now more aligned with international standards than ever before,” she added. Under PAGCOR rules, licensed platforms are subject to strict audits, software certification, real-time monitoring, and mandatory personnel licensing. “Online platforms authorised by PAGCOR must implement high-level IT security and even undergo vulnerability assessments and penetration testing as part of maintaining their licence, very much like banks and fintech companies do.”
“The lack of reported criminal breaches in PAGCOR-supervised online gaming suggests that the current licensed regime has been largely effective in mitigating the very risks cited,” she pointed out.
Concerns about ban proposals
Quiogue voiced concerns about the practicality and legality of bills proposing outright bans, especially measures that would criminalise players. “One of the pending bills (Villanueva Bill) takes the extreme step of criminalising any person who’ places, receives, or otherwise knowingly transmits a bet or wager’ over the internet,” she noted. “In effect, it turns ordinary players into criminals without clearly addressing how the law intends to catch them.”
She warned that such criminalisation might “push online betting further underground,” making it harder to monitor and defeating the bill’s purpose. “History shows that when a popular activity is banned, it often resurfaces in black markets rather than disappearing.”
She also criticised the Cayetanos’ bill, which describes online gambling as a breeding ground for serious criminal activity. “These alarmist claims do not withstand scrutiny when applied to regulated online gambling operations,” Quiogue countered. “It is misleading to conflate the POGO [Philippine Offshore Gaming Operator] experience with all online gambling.”
She said the use of the World Health Organization Fact Sheet was selective. “The same WHO Fact Sheet does not say that an outright ban is the solution. Rather, it focuses on proper regulation.” Quiogue also questioned the creation of a new Online Gambling Control Task Force under the ban bills. “Illegal gambling (including online gambling) is already a crime under existing laws,” she said. “What is needed is the political will and resources to use them, not a duplicative task force.”
The case for smarter regulation
“The real enemy, as any seasoned observer knows, is illegal gambling – operations that bypass all regulations, pay no taxes, and offer no player protections,” Quiogue stated. She proposed several specific measures: regulations for B2B providers, affiliates, and influencers; stiffer penalties for unlicensed operators and facilitators; mandatory ISP and payment blocking of known illegal websites; administrative processes for website takedowns and domain seizures; better coordination among existing enforcement agencies; benchmarking against international best practices; and earmarking funds for public education and rehabilitation.
Quiogue also defended e-wallets as a possible solution. “Unlike traditional cash-based transactions or untraceable crypto payments, e-wallets implement the strongest Know-Your-Customer protocols under existing financial regulations.”
These comments come amid new regulatory efforts from the Bangko Sentral ng Pilipinas (BSP), the Philippines central bank, which has circulated a draft circular that would require financial institutions to limit access to gambling platforms. The BSP said it is reviewing feedback on a policy that aims to introduce transaction limits or other controls to reduce gambling exposure—particularly among young users. This builds on prior measures, such as the 2021 ban on links with unlicensed gambling operators and the 2022 order for e-wallets to delist e-sabong from their services.
BSP’s move was also followed by several lawmakers proposing their own bills that would penalise platforms enabling gambling-related transactions. House Bill 721, for example, seeks to impose escalating fines on e-wallet providers that embed gambling ads, redirect users to betting apps, or distribute betting instructions. A Senate version recommends higher minimum deposits, removal of promotions near schools or homes, and stricter KYC requirements.
“In the realm of online gambling, banning the light will only let the shadows grow. Let us instead shine that light brighter through sensible regulation and steadfast enforcement of the laws that truly matter.”
– Marie Antonette Quiogue, Co-Founder and CEO of Arden Consult
Benefits of a regulated model
Quiogue cited the benefits of legalisation and regulation. “If properly regulated, online gambling can be made reasonably safe, transparent, and accountable,” she said. She emphasised the importance of responsible gaming tools such as self-exclusion, pop-up reminders, time and wager limits, and helpline access. “These kinds of fine-tuned controls target addiction risk directly, something a blanket ban pretends to do but cannot actually enforce.”
She also noted that the rise of the PIGO (Philippine Inland Gaming Operator) model shows the migration of grey-market operators into the legal fold. “Today, over 55 percent of online activity is now channelled through legal, tax-paying PIGOs—a dramatic shift toward legitimacy and protection.”
“In Q1 2025 alone, PAGCOR reported e-games revenue of PHP51.39 billion—accounting for nearly half of the industry’s PHP104.12 billion gross gaming revenue.”
International lessons: Regulation vs prohibition
Quiogue contrasted prohibition failures in China, Vietnam, and Indonesia with successful regulation in the UK, Sweden, and Italy.
“China maintains one of the world’s strictest bans. Yet, by the Chinese government’s own estimates, hundreds of billions of yuan are wagered illegally each year.” In contrast, “the UK chose to legalise and regulate online gambling comprehensively. Today, approximately 98 percent of online bets in the UK occur on legal, licensed sites.”
“Sweden’s channelisation of online gambling rose to ~80–85 percent once it opened up licensing in 2019,” she said, noting that regulation provided tools to block illegal websites and enforce standards. “The overarching lesson from abroad is clear: countries that regulated online gambling have largely succeeded… whereas those that stuck to blanket bans are still fighting ghosts in the dark.”
Enforcement over prohibition
“An outright ban is more likely to create a host of new problems: unenforceable mandates, invasion of privacy, loss of legitimate economic activity, and a boom for illegal operators,” Quiogue said. “Stricter regulation, not prohibition, strikes the better balance between individual freedom and public interest.”
She called for leveraging existing legal tools and improving enforcement. “The real enemy is not the internet, nor gambling per se – it’s the unchecked, unregulated exploitation that flourishes when we turn off the lights and pretend a problem has gone away.”
“In the realm of online gambling, banning the light will only let the shadows grow. Let us instead shine that light brighter through sensible regulation and steadfast enforcement of the laws that truly matter,” Quiogue concluded.
