Online gambling's huge social costs outweigh 'minimal' economic contribution, DEPDev says

THE PHILIPPINES' economic planning department on Wednesday expressed its support for either an outright ban of online gambling operations or tighter regulations for the sector, a position that might give lawmakers impetus to crack down on the industry that has come under scrutiny due to its social impact.

- Kenneth Christiane L. Basilio Reporter

The Department of Economy, Planning, and Development (DEPDev) said the electronic gaming industry contributed only about P81.6 billion or 0.37% to real gross domestic product last year, according to a technical brief submitted to a House of Representatives committee and obtained by BusinessWorld.

"Given its minimal contribution to the economy and vis-à-vis the significant social cost, we do support either its complete prohibition or stricter regulation," DEPDev Director Desiree Joy O. Narvaez told lawmakers at a congressional hearing.

Online gambling has emerged as a growing concern in the Philippines amid rising cases of addiction, prompting lawmakers to file multiple bills in Congress seeking to either ban or tighten its regulation.

"Studies have found that people are more inclined to engage in online gambling due to its high accessibility, affordability, convenience, anonymity and the ability to participate in multiple gaming activities," according to a DEPDev position paper signed by Economy Secretary Arsenio M. Balisacan.

About 32 million Filipinos — half of the country's working-age population — gamble online, from 469,000 in 2018, according to government data.

The House Committee on Games and Amusement has yet to decide whether to endorse a full ban on online gambling or pursue stricter regulations, its chairman Cavite Rep. Antonio A. Ferrer said. However, most congressmen favor a total ban, he added.