From jueteng and masiao to underground casinos, unregulated gambling networks have always thrived outside the law. They were untaxed, unmonitored, and unsafe for players, and the arrival of the internet only amplified this reality.
And if history is any indication, imposing a total ban on online gambling covering both legal and illegal platforms will not solve the problem of people being hooked on this vice.
In a position paper, lawyer and Arden Consult CEO Marie Antonette Quiogue argued that the smarter route forward is to tighten regulations on legal, registered online entities like Eusebio Tanco-run Digiplus Interactive Inc. or the newer Megafunalo platform of billionaire businessman Enrique Razon Jr. instead of mandating an outright, indiscriminate prohibition on the industry.
The real issue that the industry's critics should be concerned about, she said is, "the unchecked growth of illegal gambling websites, many of them hosted overseas, that continue to siphon off untaxed revenue while exposing Filipinos to unregulated play.”
Recent research confirms the scale of this problem. In the first quarter of 2025, online platforms accounted for 49 percent of total revenues of Philippine Amusement and Gaming Corp. (PAGCOR).
But this regulated section of the industry accounts for only 40 percent of the total online gambling market. Anecdotal evidence points to the likelihood that illegal gambling operators now accounts for a bigger share of this growing pie.
These shadowy platforms thrive precisely because they are beyond regulatory reach, shifting domains and hiding behind offshore structures.
Legal play is not the enemy
The introduction and regulation of online gambling converted an existing, unregulated practice into a supervised, lawful activity.
Oversight by PAGCOR has transformed the industry from operating underground to operating transparently, moving from backrooms into monitored and licensed platforms. From an untaxed and illegal industry, legal online gambling firms now contribute substantially to state coffers, generating billions in revenues.
Compared to risky illegal operations of the past, today’s legal online gambling platforms operate under tight rules, enforcing know-your-customer, anti-money laundering, and responsible gaming standards.
Danger of scapegoating
Blaming legal online gambling is politically convenient. But banning or overburdening licensed operators risks pushing players underground, which is where the actual and potential harm is multiplied.
A recent study by market research firm Fourth Wall revealed that unregulated platforms boast of as many as 5,000 games compared to only 2,900 on legal sites. Illegal sites also offer sign-up bonuses of up to 108 percent and, more alarmingly, skip basic age checks.
As such, there have been reports of teenagers admitting to gambling away their tuition money on illegal platforms and accumulating debts they could not repay. Players routinely report scams, blocked withdrawals, and privacy breaches.
In contrast, legal platforms cap transactions to reduce losses, verify age and identity, and provide formal complaint channels through PAGCOR.
Most efficient solution
The costliest mistake government can make is to conflate the legal with the illegal. The more efficient path, both in cost and outcome, is to regulate legal online gambling smartly, let it compete, and draw players away from the black market.
With a well-regulated system, players gain protection, enjoying gambling as entertainment under safeguards, while government collects revenues to ease its fiscal strain. Under this scenario, the industry thrives responsibly, potentially becoming a regional pioneer in safe online gaming.
Every peso bet on a licensed site funds public coffers and strengthens oversight. In contrast, every peso bet illegally disappears into the shadows, fueling crime and victimizing players.
Enforcement's limits
Calls for the gambling regulator to shut down illegal sites miss the point.
Quiogue pointed out that PAGCOR has no power to close illegal sites, and can only refer cases to the proper enforcement bodies. Real enforcement lies with the National Telecommunications Commission, the Department of Justice, the National Bureau of Investigation, and the Philippine National Police.
Even then, chasing offshore operators is a losing game. Domains reappear overnight, and anonymous owners melt away.
“Even the most advanced enforcement agencies struggle to pin down the true operators of these platforms,” Quiogue warned.
This is why regulation of the legal sector is so important. By drawing players into safer, regulated platforms, government reduces the pool of customers that illegal operators prey upon.
International lessons
Other countries have proven this model. Sweden introduced supplier licensing in 2023 to starve illegal sites of high-quality games. The United Kingdom, Belgium, and Ontario, Canada have long required B2B suppliers to service only licensed operators.
These policies did not eliminate illegal gambling outright, but they tilted the playing field, making it harder for rogue sites to thrive and easier to keep players in legal markets.
Quiogue argued that cutting off illegal operators from their suppliers, payment processors, and affiliates will create “considerable friction” for the black market. This supply-chain strategy is more sustainable than endless "whack-a-mole" enforcement.
Unified approach
Ultimately, no single agency or stakeholder can solve the problem.
Government must align law enforcement, regulators, telecom providers, and financial institutions. Industry must step up compliance and transparency. Civil society must help educate the public on the risks of illegal play.
The choice is between fragmentation which strengthens illegal operators and a unified approach which protects players, secures revenue, and builds trust.
The bottom line
Gambling has always been part of Philippine life. The question is whether government will let it continue as unchecked illegal operations in the digital age, or whether it will use regulation as a shield.
More evidence is emerging that illegal online gambling now dominates market share and inflicts the greatest harm.
As such, targeting legal operators is misguided and counterproductive. The only viable way forward is to regulate smarter, strengthen legal platforms, and drain the black market of its lifeblood.
Legal gambling, when done right, offers entertainment with safeguards, tax revenues for the state, and credibility for the industry. In contrast, illegal gambling offers only risk, exploitation, and lost revenue opportunities for the state.
The path to progress is not prohibition, but regulation. The Philippines cannot afford to get this wrong.
Senior Reporter
