Ban on Online Gambling Act

TWENTIETH CONGRESS OF THE JUL -2 P 4:59 REPUBLIC OF THE PHILIPPINES ) First Regular Session ) RECEIVED 2! SENATE S. No. Introduced by Senators PIA S. CAYETANO and ALAN PETER "COMPAÑERO" S. CAYETANO AN ACT PROHIBITING ONLINE GAMBLING IN THE PHILIPPINES, PRESCRIBING PENALTIES THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE Online gambling has grown at an alarming rate in recent years, fueled by the widespread availability of mobile technology and internet connectivity. Unlike traditional land-based gambling, online platforms offer unrestricted, 24/7 access, making them particularly addicting and dangerous, especially for the youth. According to the World Health Organization (WHO), online gambling is strongly associated with adverse mental health outcomes, including addiction, anxiety, and depression'. It has also been linked to family disintegration, academic failure, and financial distress. In the Philippines, online gambling has not only endangered the wellbeing of individuals and families, it has also become a breeding ground for serious criminal activity. Law enforcement agencies have uncovered cases involving fraud, cybercrime, money laundering, and even human trafficking linked to online gambling operations. There is an urgent need for comprehensive legislation to prohibit online gambling. While existing laws provide a framework for regulating land-based gambling, the legal regime 1 World Health Organization. (2024, December 02). "Gambling," WHO Fact Sheet https://www.who.int/news-room/fact-sheets/detail/gambling

surrounding online gambling remains inadequate, fragmented, and difficult to enforce. This lack of clarity has allowed operators and users to exploit loopholes, often at the expense of public welfare. This measure builds upon and harmonizes the legislative initiatives filed in the 19th Congress by co-author Senator Alan Peter Cayetano and Senator Joel Villanueva, who have each taken strong positions against online gambling. They introduced bills specifically seeking to prohibit online game platforms linked to gambling. Their respective proposals reflect a strong and unified policy stance against the proliferation of online gambling and its adverse impact on individuals, families, and society at large. This bill seeks to decisively address these issues by explicitly prohibiting online gambling in all its forms, including both domestic and offshore-based platforms accessible to users in the Philippines; imposing penalties on operators, enablers, and users involved in online gambling activities; empowering law enforcement agencies and financial regulators to detect, investigate, and prosecute illegal online gambling operations; and mandating the cooperation of internet service providers, digital platforms, and payment service providers in blocking access to online gambling sites and financial transactions. Through this measure, we aim to protect the wellbeing of Filipino families, uphold public morals, and preserve the trust and security of our digital and financial systems. In view of the foregoing, the immediate passage of the bill and approval of the same are earnestly sought. Pia S. Cantano PIA S. CAYETANO ALAN PETER "COMPAÑERO" S. CAYETANO

surrounding online gambling remains inadequate, fragmented, and difficult to enforce. This lack of clarity has allowed operators and users to exploit loopholes, often at the expense of public welfare. This measure builds upon and harmonizes the legislative initiatives filed in the 19th Congress by co-author Senator Alan Peter Cayetano and Senator Joel Villanueva, who have each taken strong positions against online gambling. They introduced bills specifically seeking to prohibit online game platforms linked to gambling. Their respective proposals reflect a strong and unified policy stance against the proliferation of online gambling and its adverse impact on individuals, families, and society at large. This bill seeks to decisively address these issues by explicitly prohibiting online gambling in all its forms, including both domestic and offshore-based platforms accessible to users in the Philippines; imposing penalties on operators, enablers, and users involved in online gambling activities; empowering law enforcement agencies and financial regulators to detect, investigate, and prosecute illegal online gambling operations; and mandating the cooperation of internet service providers, digital platforms, and payment service providers in blocking access to online gambling sites and financial transactions. Through this measure, we aim to protect the wellbeing of Filipino families, uphold public morals, and preserve the trust and security of our digital and financial systems. In view of the foregoing, the immediate passage of the bill and approval of the same are earnestly sought. PIA S. CAYETANO MANT TO CANEANIO

P4:59 TWENTIETH CONGRESS OF THE JUL -2 REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED E SENATE S. No. . Introduced by Senators PIA S. CAYETANO and ALAN PETER "COMPAÑERO" S. CAYETANO AN ACT PROHIBITING ONLINE GAMBLING IN THE PHILIPPINES, PRESCRIBING PENALTIES THEREFOR, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Ban on Online Gambling

2 Act."

Sec. 2. Declaration of Policy. - It is the policy of the State to promote a just and

4 dynamic social order that will ensure the prosperity and independence of the nation and free people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all. Towards this end, the State shall pursue measures to ban all forms of online gambling. Such activities undermine the dignity of labor and Filipinos' quality of life by encouraging reckless behavior in pursuit of instant monetary gain, often resulting in severe financial hardship, disrupting family life, and contributing to social instability. The State recognizes that sustainable prosperity must be built on productive and dignified work, not on exploitative and destabilizing systems of chance.

Sec. 3. Definition of Terms - For purposes of this Act, the following terms are

hereby defined as follows:

a) Online Gambling - refers to any form of betting, gaming, or wagering activity conducted through the internet or other digital or electronic platforms, whether web-based or app-based, and whether accessed via computers, mobile devices, or any other means of electronic communication. This includes, but is not limited to: i) Casino-style games, such as slot machines, roulette, blackjack, and other games typically found in physical casinos, when played through digital platforms; ii) Sports betting, including wagering on live or simulated sports events through websites or mobile applications; iii) Live dealer or interactive games, where players place bets on real-time games hosted by live dealers streamed via online platforms; iv) Lottery, bingo, or number games, whether played for cash or equivalent prizes; v) E-sabong and other forms of online wagering on animal fights or competitions; and vi) Any other game or scheme that involves the payment of money or equivalent consideration in exchange for the chance to win money, digital assets, or other items of value through chance, skill, or a combination thereof. This definition covers both licensed and unlicensed platforms and applies regardless of whether the operator is based within or outside the Philippines, so long as the gambling activity is accessible to users within Philippine jurisdiction.

b) Platform Operator - refers to any natural or juridical person, whether acting alone or in collaboration with others, that owns, operates, manages, administers, promotes, facilitates, or provides technological infrastructure or services for the conduct of online gambling. This includes, but is not limited to: i) Entities that host or run gambling websites, mobile apps, or digital platforms; ii) Service providers that process bets or wagers, manage player accounts, or handle digital transactions related to online gambling; iii) Affiliates, promoters, or agents who advertise, market, or distribute access to online gambling services; iv) Payment processors or digital wallet services knowingly facilitating gambling-related transactions. c) Player or User - refers to any natural person who accesses, participates in, engages in, or places bets or wagers through any form of online gambling platform, application, website, or digital service. This includes individuals who: i) Register for or maintain an account with an online gambling platform; ii) Place or attempt to place bets, wagers, or stakes using money, digital currency, or any item of value; iii) Participate in games, contests, or schemes that involve chance, skill, or a combination thereof for the purpose of obtaining winnings or rewards.

Sec. 4. Prohibition. - All forms of online gambling are hereby strictly prohibited

within the territorial jurisdiction of the Republic of the Philippines. It shall be unlawful for any person, whether natural or juridical, to directly or indirectly:

a) Own, operate, establish, manage, maintain, host, or otherwise make available any website, application, platform, or system used for the conduct of online gambling; b) Participate in, place bets on, or otherwise engage in any online gambling activity, regardless of whether such activity involves monetary stakes or any other item of value; c) Promote, advertise, endorse, or market online gambling platforms, applications, games, or related services through any medium, including but not limited to digital, print, broadcast, and social media; d) Facilitate or process financial transactions related to online gambling, including payments, withdrawals, or transfers made through electronic payment systems, digital wallets, cryptocurrencies, or other financial technologies; or e) Provide technical, logistical, professional, or any other form of support, including software development, customer service, server hosting, marketing services, or data processing that enables, aids, or abets the operation, maintenance, or promotion of online gambling activities.

Sec. 5. Responsibilities of Platform Operators. - Internet service providers,

social-media platforms, mobile application stores, and payment service providers shall: a) Block or geo-restrict access to identified online-gambling websites, uniform resource locators (URLs), Internet Protocol (IP) addresses, or mobile applications within seventy-two (72) hours from receipt of notice from the Online Gambling Control Task Force; b) Decline or suspend transactions related to online gambling websites and applications; c) Remove or delist online-gambling content or applications; and d) Submit quarterly compliance reports to the Online Gambling Control Task Force.

Sec. 6. Online Gambling Control Task Force. - There is hereby created, within thirty

2 (30) days from the effectivity of this Act, an inter-agency body to be known as the Online Gambling Control Task Force (OGCTF), under the administrative supervision of the Office of the President, for enforcement coordination among concerned agencies. The OGCTF shall be headed by the Philippine Amusement and Gaming Corporation 6 (PAGCOR) as the Chairperson, with the Department of Information and Communications 7 Technology (DICT) as Vice-Chairperson, and the following members: a) Department of Justice (DOJ; b) Anti-Money Laundering Council (AMLC); c) Department of the Interior and Local Government (DILG); d) National Bureau of Investigation (NBI); e) Philippine National Police (PNP); and f) Cybercrime Investigation and Coordinating Center (CICC). Each government agency member may designate a permanent representative to the OGCTF, with a rank not lower than an Assistant Secretary or its equivalent. The OGCTF shall be manned by a secretariat of selected existing personnel and representatives from the different participating agencies.

Sec. 7. Powers and Functions. - The OGCTF shall have the following powers and

functions: a) To prepare appropriate and effective measures to suppress online gambling activities as provided for in this Act; b) To coordinate the support and participation of the business sector, local government units, and nongovernment organizations in online gambling suppression and addiction recovery programs and other related projects; c) To issue notices for blocking and takedown orders; d) To facilitate international cooperation on intelligence, investigations, training, capacity building, and mutual assistance related to online gambling suppression and prosecution;

e) To maintain a whistleblower mechanism and hotline; f) To call upon any government agency to render assistance in the accomplishment of the OGCTF's mandated tasks and functions; and g) To perform all other matters related to online gambling suppression and such other functions and duties as may be necessary for the proper implementation of this Act.

Sec. 8. Penalties. -

a) Platform Operators. - Any person, whether natural or juridical, who operates, establishes, maintains, or manages an online gambling platform shall be punished with imprisonment of ten (10) years, and a fine of not less than Ten Million Pesos (P10,000,000.00). In the case of a juridical entity, the penalty shall include the revocation of business permits and licenses, forfeiture of assets used in or derived from the illegal activity, and perpetual disqualification from conducting business in the Philippines. Responsible officers, directors, and managers shall be held jointly and severally liable. b) Players or Users. - Any person who participates in or engages in online gambling shall be punished with imprisonment of up to six (6) months, or a fine of up to One Hundred Thousand Pesos (P100,000.00), or both, at the discretion of the court. c) Advertisers. - Any person or entity who promotes, advertises, or markets online gambling services or facilitates related payments through electronic platforms, financial intermediaries, digital wallets, or any similar systems shall be punished with imprisonment of up to five (5) years, and a fine of not less than Five Million Pesos (P5,000,000.00).

Entities found liable shall also face revocation of licenses, forfeiture of gains derived from the offense, and blacklisting from government transactions. d) Payment Service Providers. - Any person or entity who promotes, advertises, or markets online gambling services or facilitates related payments through electronic platforms, financial intermediaries, digital wallets, or any similar systems shall be punished with imprisonment of up to five (5) years, and a fine of not less than Ten Million Pesos (P10,000,000.00). Entities found liable shall also face revocation of licenses, forfeiture of gains derived from the offense, and blacklisting from government transactions. e) Public Officers. - Any public officer or employee who, by act of commission or omission, knowingly allows, tolerates, or abets the operation, promotion, or facilitation of online gambling shall, in addition to the penalties provided herein, suffer the penalty of perpetual disqualification from holding public office, forfeiture of retirement and other government benefits, and criminal prosecution under relevant anti-corruption and penal laws.

Sec. 9. Forfeiture and Victims' Rehabilitation Fund. - All proceeds, assets,

equipment, and instruments used in online gambling shall, upon conviction, be forfeited in favor of the State. In addition, thirty percent (30%) of all fines imposed and fifty percent (50%) of the value of forfeitures issued shall constitute the Online Gambling Victims' Assistance and Rehabilitation Fund, which shall be administered by the Department of Health for treatment and recovery of gambling addicts, and for mass public-education campaigns on the dangers and psychological effects of gambling.

Sec. 10. Repeal of Authority to Regulate Online Gambling. - All general and special

laws, decrees, executive orders, rules and regulations, which are interpreted to give legal authority to regulate any forms of online gambling are hereby repealed.

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Sec. 11. Compliance Monitoring and Reporting. - Not later than one (1) year after

the effectivity of this Act, and annually thereafter, the OGCTF shall submit to the Office of the President and to both Houses of Congress its compliance monitoring report which shall contain, among others, actions, accomplishments, and status in the implementation of this Act.

Sec. 12. Implementing Rules and Regulations. - Within ninety (90) days from the

effectivity of this Act, the OGCTF, in consultation with stakeholders, shall promulgate the necessary rules and regulations for the implementation of this Act.

Sec. 13. Transitory Provision. - Existing online-gambling operators shall cease

10 operations and take down all platforms within thirty (30) days from effectivity of this act. Within the same period, users who still have remaining funds in their online gambling accounts shall be transferred back to their e-wallets.

Sec. 14. Separability Clause. - If any portion or provision of this Act is declared

unconstitutional, the remainder of this Act or any provisions not affected thereby shall remain in force and effect.

Sec. 15. Repealing Clause. - Any law, presidential decree or issuance, executive

17 order, letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

Sec. 16. Effectivity Clause. - This Act shall take effect after fifteen (15) days

following its complete publication in the Official Gazette or a newspaper of general circulation. Approved,