Philippines Proposes 10% Online Gambling Tax for Health Fund

File photo for reference only

In a bold move to tackle the escalating effects of online gambling, Philippine lawmakers have introduced House Bill 1351, known as the Kontra e-Sugal Act of 2025. Unveiled on 7th July, the bill aims to impose a 10% tax on online gambling operators to fund addiction treatment and public health initiatives.

The rapid growth of online gaming has reportedly led to financial strain and family discord, prompting both House and Senate members to propose various regulations. While previous efforts focused on limiting e-wallet usage and setting bet limits, this bill uniquely champions a tax-funded response reminiscent of tobacco and alcohol sin taxes.

Central to the bill is the establishment of a Special Gambling Harm Reduction Fund. Managed by the Department of Health, and coordinated with several agencies, this fund will derive its resources from the proposed gaming tax.

Allocation of Funds

The fund aims to sustain rehabilitation centres and bolster public awareness:

• 40% for treatment and rehabilitation centres
• 30% for education and awareness campaigns

The Department of Health will lead these efforts, collaborating with the Department of Social Welfare and Development to deliver clinical assessments and counselling. Initiatives include community-based support, a 24/7 crisis hotline, mobile mental health teams, and comprehensive outreach programmes. Furthermore, treatment for gambling disorders is to be integrated into the national health insurance.

The remaining funds are earmarked for regulatory enhancements (20%) and supporting research and policy development (10%).

Current Industry Trends

With the rise of electronic gaming, the Philippine Amusement and Gaming Corporation (PAGCOR) anticipates gross gaming revenues to soar to around 480 billion pesos (approximately 462 billion Thai Baht) by 2025, up from 410 billion pesos last year.

E-Wallet and Gambling Regulations

Mirroring similar proposals, this bill seeks to restrict e-wallets and super apps from interfacing with gambling platforms. Unique to this legislation, however, is a mandate directing all transactions through Anti-Money Laundering Council (AMLC)-approved channels.

The proposal also demands that online gaming operators scrutinise players' financial backgrounds to prevent harmful gambling practices. Platforms must set betting limits based on financial profiles and incorporate real-time behaviour monitoring to safeguard users.

Public Officials

A stringent clause in the bill forbids public officials, including police and military personnel, from participating in online gambling. Violations could result in administrative repercussions, alongside a prohibition on political contributions from gambling operators.

Proposed by representatives from the Akbayan Party-list and backed by Rep. Arlene Bag-ao, the Kontra e-Sugal Act seeks a comprehensive governmental approach to combat the deepening issue of online gambling. Chel Diokno emphasised the importance of preventing citizens from risking not only their finances but their future aspirations as well.

  Adapted by ASEAN Now from PhilStar 2025-07-07