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Philippines Grapples with Online Gambling: Ban or Regulate?

In the bustling streets of Manila, where digital connectivity is as commonplace as the hum of motorized tricycles, a pressing debate is unfolding. The rapid rise of online gambling has sparked a national conversation about its societal impact, with Health Secretary Teodoro Herbosa recently weighing in on the issue as a mental health concern. As legislative proposals to either ban or regulate the industry gain traction, the Philippines faces a complex dilemma: how to address the risks of addiction while preserving a significant source of public revenue.

A Growing Concern for Public Health

The accessibility of online gambling platforms, available at the tap of a smartphone screen, has raised alarms among health officials. On Wednesday, during a forum in Bonifacio Global City, Taguig, Health Secretary Teodoro Herbosa highlighted the addictive nature of gambling. “Addiction to gambling is a mental health problem, you can see that many families are addicted to gambling because it’s very accessible” he said in an ambush interview. Herbosa expressed openness to both an outright ban and stricter regulation, signaling the urgency of addressing the issue from a public health perspective.

The health secretary’s concerns are not isolated. The behavioral impact of gambling, often described as habit-forming, and can disrupt family dynamics and personal finances, particularly in a country where digital platforms have made betting more accessible than ever. With mobile applications and websites allowing wagers through phones and tablets, the barriers to entry are lower than in traditional gambling settings, exacerbating the risk of addiction.

Risk Issue
High Standardized global estimation of gambling harms has been limited, but estimates suggest that 1.2% of the world’s adult population has a gambling disorder. Harm from gambling by others is also widespread.
High Industry analysts estimate global gambling revenue will reach US$ 700 billion by 2028. Smartphone use in low- and middle-income countries will drive much of this growth.
High People gambling at harmful levels generate around 60% of losses (gambling revenue).
High Gambling can threaten health, leading to increased incidence of mental illness and suicide. It can drive poverty by diverting household spending from essential goods and services.
High Gambling harms also include relationship breakdown, family violence, financial distress, stigma, income-generating crimes (theft, fraud), neglect of children, and erosion of civil institutions via corruption and corporate political activity. Gambling is also a common way to launder money obtained through illegal activities.
High The rapid normalization of gambling is occurring through commercialization and digitization. Sponsorship and marketing are also key factors in rapid global growth.
Source: WHO Gambling Fact Sheet

Legislative Push for Action

The Philippine Senate has become a battleground for competing visions on how to tackle online gambling. Earlier this month, Senator Juan Miguel Zubiri introduced the Anti-Online Gambling Act of 2025, a bill that seeks to prohibit all forms of online gambling in the country. Describing it as a silent epidemic that harms Filipinos, especially minors and vulnerable groups, Zubiri’s proposal aims to shut down digital betting platforms entirely. If passed, the measure would mark a significant shift in the nation’s approach to an industry that has grown rapidly in recent years.

In contrast, Senator Sherwin Gatchalian has proposed a more nuanced approach through a bill filed on July 1, advocating for stricter regulations rather than a total ban. His measure includes provisions to ban gambling sponsorships of public events and campaign donations, aiming to curb the industry’s influence on public life. Additionally, it mandates that regulators allocate a portion of collected fees to establish gambling addiction rehabilitation centers, directly addressing the mental health concerns raised by officials like Herbosa. Other proposed restrictions include raising the minimum age for players from 18 to 21 and setting a minimum cash-in requirement to discourage impulsive betting via e-wallets.

These legislative efforts reflect a broader recognition of the challenges posed by online gambling. While Zubiri’s outright ban seeks to eliminate the risks altogether, Gatchalian’s regulatory framework aims to mitigate harm while allowing the industry to operate under tighter controls. The debate underscores a critical question: can the Philippines balance public health imperatives with economic realities?

Economic Stakes and Public Funding

Beyond the health implications, online gambling has become a significant economic force in the Philippines. According to advocacy group CitizensWatch Philippines, the legal online gaming industry generated P50 billion (~US$850 million) in revenue in 2024, with half of these funds supporting critical public programs such as universal health care, grassroots sports development, and drug rehabilitation. The group warns that a blanket ban, as proposed by Zubiri, could jeopardize up to P100 billion (~US$1.7 billion) in projected earnings over the coming year, creating a substantial shortfall in public funding.

CitizensWatch Philippines argues that rather than banning online gambling, the government should strengthen oversight to ensure consumer protection while preserving economic benefits. The group cautions that a total prohibition could drive the industry underground, stripping regulators of control and exposing users to illegal offshore operators beyond the country’s jurisdiction. Such a scenario, they suggest, would not only fail to address addiction but also increase risks for vulnerable players by removing safeguards inherent in a regulated market.

The economic argument adds a layer of complexity to the debate. The revenue generated by online gambling has become a lifeline for social programs at a time when public budgets are often stretched thin. Losing this income could force the government to seek alternative funding sources or cut back on initiatives that benefit marginalized communities, a trade-off that policymakers must weigh carefully against the social costs of gambling addiction.

Societal Impact and Vulnerable Populations

The accessibility of online gambling has disproportionately affected certain segments of Philippine society. Minors, low-income individuals, and those with limited digital literacy are particularly vulnerable to the allure of quick financial gains promised by betting platforms. The ease of access—often requiring little more than a smartphone and an e-wallet—has lowered the threshold for participation, drawing in players who may not fully grasp the risks involved.

Senator Zubiri’s reference to a silent epidemic points to the insidious nature of this issue. Unlike traditional gambling, which often requires physical presence at a casino or betting shop, online platforms operate discreetly, embedding themselves into daily digital routines. A teenager browsing social media or a worker checking emails can stumble upon gambling ads or apps, initiating a cycle of behavior that can spiral into addiction. The lack of face-to-face interaction also means that warning signs may go unnoticed by family or community members until significant harm has already occurred.

Proposed regulations, such as raising the minimum age and restricting e-wallet use, aim to create barriers to entry for these at-risk groups. However, enforcing such measures in a digital landscape poses significant challenges. Regulators must contend with the borderless nature of the internet, where offshore platforms can easily target Filipino users even if local laws tighten. This reality fuels the argument for regulation over prohibition, as a controlled domestic industry could theoretically offer safer alternatives to unregulated foreign operators.

Global Context and Regional Parallels

The Philippines is not alone in grappling with the rise of online gambling. Across Southeast Asia, countries like Thailand and Vietnam have faced similar dilemmas, balancing cultural values, public health, and economic interests. In Thailand, where gambling is largely illegal except for state-run lotteries, underground online betting has flourished, prompting calls for regulated frameworks to curb illicit activity. Vietnam, meanwhile, has experimented with limited legalization of sports betting for foreigners, though strict controls remain in place for locals.

These regional examples highlight the difficulty of crafting effective policies in a digital age. A ban in one country often pushes users toward unregulated platforms hosted elsewhere, undermining the intended protective effects. For the Philippines, learning from neighbors could inform a hybrid approach that combines robust regulation with targeted public health interventions, such as awareness campaigns and accessible treatment for addiction.

International studies on gambling addiction also offer valuable insights. Research from organizations like the World Health Organization has classified gambling disorder as a behavioral addiction, akin to substance abuse in its impact on brain reward systems. Such findings underscore the need for preventive measures, whether through education, restricted access, or therapeutic support, rather than relying solely on punitive bans that may fail to address underlying behavioral drivers.

The Road Ahead: Policy and Public Debate

As the Philippine government deliberates on the future of online gambling, the stakes could not be higher. A total ban, while appealing in its simplicity, risks creating a black market that could exacerbate the very problems it seeks to solve. Regulation, on the other hand, demands a level of oversight and enforcement that may strain existing institutional capacities. Both paths require a nuanced understanding of digital ecosystems and human behavior, areas where policy often lags behind technological advancement.

Public opinion, too, will play a crucial role in shaping the outcome. Advocacy groups like CitizensWatch Philippines have already staked out positions, emphasizing the economic benefits of a regulated industry. Meanwhile, health professionals and community leaders continue to highlight the personal toll of addiction, urging lawmakers to prioritize societal well-being over fiscal gains. The voices of affected families—those who have experienced the fallout of gambling firsthand—must also be amplified in this debate, ensuring that policy reflects lived realities rather than abstract projections.

At the heart of this issue lies a fundamental tension between individual freedom and collective responsibility. Should Filipinos have the right to engage in online gambling, provided they accept the risks, or does the state have an obligation to shield its citizens from potential harm, even at the cost of personal choice? This question, as much as any economic or health concern, will define the trajectory of the Philippines’ approach to online gambling in the years ahead.

As legislative proposals move through the Senate, the nation watches closely. The decisions made in the coming months will not only shape the future of an industry but also set a precedent for how the Philippines navigates the broader challenges of digital innovation and social policy. For now, the balance between banning and regulating remains precarious, with profound implications for public health, economic stability, and societal well-being.

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