Online Gambling Regulatory Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P6:01 SENATE S. B. No. _ Introduced by SEN. WIN GATCHALIAN AN ACT REGULATING ONLINE GAMBLING IN THE PHILIPPINES EXPLANATORY NOTE With the advent of COVID-19 pandemic, there was an abrupt increase in the online activity of Filipinos which inevitably included online betting and gambling. Due to the absence of rigid regulation, online gambling platforms have been preying on the desperation of our countrymen hoping to win large sums of money instantly, advertising and facilitating online games to everyone, luring minors and persons from marginalized sectors into gambling. It does not help that temptations are everywhere, from flashy billboards to online advertisements featuring popular and who are ought to be "socially conscious" celebrities and social media influencers, sending the impression that gambling is "empowering" and "uplifting". Due to its accessibility, online gambling activities have magnified the dangers from gambling and have been linked to the erosion of our moral fibers as it has caused an increase in mental health problems, financial problems, addictive behavior, vices, and crime rates. There have been several reports of crimes associated with those participating in online gambling games, including a shooting incident because of an argument over the winnings in an online gambling game', a 27-year-old man who stole a phone to pay off ' Paul Lauro, Cebu City shooting: Man kills neighbor over online game 'scatter', November 18, 2024, available at: https:/cebudailynews.inquirer.net/606690/cebu-city-shooting-man-kills-neighbor-over-online- game-scatter (Date last accessed: June 26, 2025).

his gambling debts?, a man who attempted to steal money to finance the online slot game 'Scatter', 3 and a surge in crimes against property at an alarming rate in Lucena City due to online gambling. In fact, recent headlines reveal the connection of thirty-four (34) missing sabungeros who were dumped in Taal Lake in Batangas to illegal e-sabong operations. Further, the prevalence of unlicensed gambling websites remains an issue. In June 2025, the Department of Information and Communications Technology has so far removed seven thousand (7,000) unauthorized online gaming sites, and the numbers are continuously increasing. The Palace Press Office has also advised the public to report to Philippine Amusement and Gaming Corporation (PAGCOR) the names of those who are encountering problems because of online game addiction to deny them access to any online game platforms. Because of these problems, there is a need for legislation to regulate online gambling activities in the country, crack down on illegal online gambling operations and penalize the operators behind them. To uphold the State policy of maintaining peace and order and preserving our morals, this measure proposes the following: 1. Designation of regulatory authorities who are authorized to issue licenses and to oversee compliance of online gambling operators; 2. Prohibition of certain persons, including persons below twenty-one (21) years of age, and government officials and employees from participating in any online gambling activities; 3. Requirement on due diligence and authentication measures of players during 2 Pia Piquero, Online gambling addiction: Measures in Cebu City to stop it pushed, July 19, 2024, available at: https://cebudailynews.inguirer.net/585423/online-gambling-addiction-measures-in-cebu-city-to-stop-it- pushed (Date last accessed: June 26, 2025). 3 Paul Lauro, 'Scatter' forces man to steal cash from tile store in Mandaue, August 12, 2024, available at: https://cebudailynews.inguirer.net/589544/scatter-forces-man-to-steal-cash-from-tile-store-in-mandaue (date last accessed: June 26, 2025) 4 Delfin T. Mallari, Jr., PNP: Crimes against property in Lucena City rise due to online gambling, February 21, 2025, available at: https://newsinfo.inquirer.net/2036971/pnp-crimes-against-property-in-lucena-city- rise-due-to-online-gambling (date last accessed: June 26, 2025). 5 Jane Bautista, DOJ checks claims on cockfighters' Taal Lake 'burial', June 20, 2025, available at: last https://newsinfo.inguirer.net/2072540/doj-checks-claims-on-cockfighters-taal-lake-burial accessed: June 26, 2025). 6 Ruth Abbey Gita-Carlos, PAGCOR, DICT working hard to take down illegal gaming websites: Palace, June 19, 2025, available at https://www.pna.gov.ph/artigles/1252519 ((date last accessed: June 26, 2025).

account registration and account log-in on the online gambling platforms to be undertaken by the online gambling platform operator; 4. Regulation on account funding and withdrawal, including the prohibition on the linking of e-wallets to online gambling platforms; 5. Imposition of guidelines on advertising online gambling; 6. Mandatory registration of online gambling operators with the Anti-Money Laundering Council as a covered person; 7. Setting a minimum cash-in (PHP 10,000.00) and top-up (PHP 5,000.00) deposit in online gambling platforms; 8. Engagement of third-party auditor to ensure proper reporting of gross gaming revenues earned from online gambling; 9. Imposition of documentary stamp tax on every wager placed and income tax on winnings from online gambling games; 10. Restrictions on online gambling promotional sponsorships; 11. Prohibition on campaign contribution from online gambling operators; 12. Issuance of disabling order to restrict or block access unlicensed online gambling platform or prohibited online content; 13. Requirement on online gambling platforms to institute a mechanism to ban and exclude players and a responsible gaming program; and 14. Imposition of penalties for the commission of prohibited acts and other violations of the law. In view of the foregoing, urgent approval of this measure is earnestly sought.

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P6:01 SENATE .... S.B. NO. 57 Introduced by Senator Win Gatchalian AN ACT REGULATING ONLINE GAMBLING IN THE PHILIPPINES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Online Gambling

2 Regulatory Act".

SEC. 2. Declaration of Policy. - The State recognizes that in a democratic

4 society, the maintenance of peace and order, the protection of life, liberty, and 5 property, and promotion of the general welfare is paramount. It is thereby the policy 6 of the State to protect the people from all matters affecting the security of its social order and free people from poverty through policies that provide an improved quality of life for all. Furthermore, the State recognizes the role of youth in nation building, Hence, the state shall promote and protect the physical, moral, spiritual, intellectual, and social well-being of the youth.

SEC. 3. Definition of Terms. - For the purposes of this Act:

a. Advertising refers to the business of conceptualizing, presenting, making available and communicating to the public, through any form of mass media,

". any fact, data or information about the attributes, features, quality or availability of consumer products, services or credit; b. Biometric information refers to front-facing photograph, fingerprint, iris scan and/or such other identifiable features of an individual; C. Celebrity refers to any natural person who, by his or her accomplishments or fame, or by reason of his or her profession or calling, gives the public a legitimate interest in his or her doings, affairs and character. The term includes anyone who has arrived at a position where public attention is focused upon him or her as a person, such as, but not limited to, actors, athletes and other sports personalities, war heroes, famous inventors, social media influencers and explorers, among others; d. Electronic money issuers refer to entities which provide money transfer or remittance services using electronic stored money value system and similar digital financial services; e. Electronic wallet or e-wallet refers to an electronic instrument or device that can store digital value accessible via mobile phones or other access device and other similar products; f. Internet intermediaries refer to persons or entities that provide infrastructure, platforms, access to, and host, transmit and index content, products and services originated by third parties on the internet. These include, among others: (1) Internet service providers; (2) Web hosting providers including domain name registrars; (3) Internet search engines and portals;

". (4) E-commerce intermediaries; (5) Internet payment system providers; and (6) Participative network platform providers including social media intermediaries. g. Multi-Factor Authentication refers to an authentication method that require two (2) or more verification factors to gain access to a resource; h. Online Content refers to textual, aural, or visual content published on a website, including social media platforms; i. Online Gambling Games refer to virtual games of chance and mixed games of chance and skills such as Traditional Bingo Games, eBingo Games, eCasino Games, Sports Betting, Specialty Games, Online Poker Games, or any suite of games that may be allowed by Philippine Amusement and Gaming Corporation (PAGCOR); j. Online Gambling refers to the conduct of online games and the taking of wagers through any computer or communication device connected to the Internet or the use of Internet-based technology and other communication devices that are necessary for gaming operations. This includes the offering of online gambling games or wagering via online gambling platform outside the gaming area of a land-based casino; k. Online Gambling Platform refers to the virtual venue or online channel developed to allow the registered players to remotely access, through the internet, the online gambling games. It may be web-based or accessed via a mobile application; 1. Online Gambling Operator refers to individual, corporation, or other private

entity duly licensed by authorities to set-up and to operate an online gambling platform; and m. Personal Information refers to any information whether recorded in a material form or not, from which the identity of an individual is apparent or can be reasonably and directly ascertained by the entity holding the information, or when put together with other information would directly and certainly identify an individual as defined in Republic Act No. 10173 or the "Data Privacy Act of 2012". n. Regulatory Authorities refer to PAGCOR, special economic zone authorities, Tourism Infrastructure and Enterprise Zone Authority (TIEZA), freeport authorities, and other pertinent government agencies authorized to issue license and regulate online gambling operators.

SEC. 4. Regulatory Authorities. - Only online gambling platforms duly licensed

14 by the PAGCOR, special economic zone authorities, TIEZA, freeport authorities, and 15 other pertinent government agencies, may host online gambling games, as defined under this Act, and accept wagers from bettors not prohibited under this Act. Such regulatory authorities are mandated to oversee the operations of online gambling operators and ensure their compliance to the provisions of this Act.

SEC. 5. Registration of Online Gambling Operators. - Only corporations duly

registered with the Securities and Exchange Commission (SEC), whose primary purpose refer to online gambling, may apply license from the regulatory authorities: as defined under Section 4: Provided, That foreign nationals may operate as an online 23 gambling operator subject to compliance with the foreign ownership restrictions under Republic Act No. 7042 or the "Foreign Investments Acts of 1991", as amended.

SEC. 6. Prohibited Persons. - The following persons are not allowed to

participate in any online gambling games or activities: a. Persons below twenty-one (21) years of age are not allowed to register and access the online gambling platform. The online gambling operator shall implement effective measures to ensure the denial of access to individuals below twenty-one (21) years of age; b. Government officials and employees connected directly with the operation of the Government or any of its agencies; C. Member of the Armed Forces of the Philippines, including the Army, Navy, Air Force or the Philippine National Police; d. Persons banned or excluded by an Exclusion Order in accordance with the provisions of this Act; and e. Any other persons prohibited to play or participate in any forms of gambling under other laws. The online gambling platform shall ensure that the prohibited persons cannot access their website or platform. Failure to do so shall be considered as a violation of this Act.

SEC. 7. Know-Your-Customer (KYC) Requirement. - Account registration on the

online gambling platform should establish the proof of identity of the individual by requiring submission of the individual's personal information, a valid photo-bearing government-issued identification card, and biometrics information. A verification process, such as, but not limited to video calling, must be used to verify and confirm the identity of the applicant prior to confirmation of his account. The online gambling platform shall obtain the consent of an individual before

collecting his or her identity information for the purposes of authentication. It shall inform the individual submitting his or her identity information the following details, namely: (a) the nature of the information that may be shared upon authentication, 4 and (b) the uses to which the information received during authentication may be put 5 by the requesting entity: Provided, That the information requested shall only be used 6 for the purpose for which it was requested: Provided, further, That the online gambling 7 operator shall submit to the regulatory authority its newly registered players on a monthly basis.

SEC. 8. Minimum Cash-In Requirement. - The minimum initial cash-in deposit

10 shall be set at Ten thousand pesos (P10,000.00): Provided, That additional top-up or cash-in deposit shall be at a minimum and divisible by One thousand pesos (P 5,000.00).

SEC. 9. Account Funding and Withdrawal. - Account funding and withdrawal

shall be done only through Anti-Money Laundering Council-compliant channels, such 15 as over-the-counter and online banking: Provided, That account funding through credit 16 cards or other credit facilities shall only be allowed to accounts with low gambling risk 17 to be determined by the regulatory authorities under Section 4 of this Act: Provided, further, That account funding and withdrawal through non-bank electronic money issuers such as electronic wallet or e-wallet, payment system operators as defined under Republic Act No. 11127 or the "National Payment Systems Act", and other similar financial institutions as determined by the Bangko Sentral ng Pilipinas, shall be 22 prohibited: Provided, finally, That the online gambling operator shall regularly submit 23 an updated list of all payment solutions linked to the online gambling platform to the regulatory authorities, under Section 4 of this Act.

SEC. 10. Account Log-in Verification Process. - The online gambling platform

2 shall ensure that only registered players are using the account through implementation 3 of Multi-Factor Authentication such as, but not limited to, a combination of encoding 4 of one-time Password (OTP) or Personal Identification Number (PIN), use of facial 5 recognition technology or biometrics, use of artificial intelligence or image recognition 6 programs or technologies, use of geofencing technologies, among others.

SEC. 11. Registration with the Anti-Money Laundering Council (AMLC). - Online

8 gambling operators shall be required to register with the AMLC as a covered person 9 within thirty (30) calendar days from the actual date of commencement of the 10 operations: Provided, That online gambling operators licensed by the regulatory 11 authorities upon the effectivity of this Act shall register with the AMLC within thirty 12 (30) calendar days from the effectivity of the Implementing Rules and Regulations of 13 this Act.

SEC. 12. Advertisement Regulation. - Any online gambling advertisement, by

15 any means, must be socially responsible and must adhere to the following guidelines: a. Advertising materials must not portray, encourage, or condone gambling behavior that is socially irresponsible or could lead to financial harm; b. Advertising materials must not be directed to those people prohibited from participating in gambling of any forms; C. Advertisements must not feature a celebrity or any people who are prohibited from gambling or those who appear to be under 21 years old; d. Advertisements suggesting that gambling can be a solution to money problems is prohibited; e. Billboards, posters, fliers and the like, promoting online gambling must be

located not less than a 200-meter radius from schools, and places of worship and churches, and government offices; and f. No advertisements shall be allowed in any educational, sport, concert, cultural, religious or art event. It shall also be prohibited during public events.

SEC. 13. Duties of Internet Intermediaries. - Internet intermediaries shall:

a. Adopt in their terms of service or service agreements with third-party users or creators of contents, products, and services the prohibition of any form of advertisement violative of the advertisement regulations under this Act; b. Immediately block access to, remove or take down the internet address, uniform resource locator (URL), websites or any content violative of the advertisement regulations under this Act within twenty-four (24) hours from receipt of disabling order from National Telecommunications Commission (NTC); and c. Develop, establish, and install mechanisms or measures designed to prevent, detect, respond, or report violations of this Act within their websites, platforms, applications, servers or facilities compatible with the products and services they offer that may be in accordance with the global best practices and guidelines to counter violations of this Act which may include the installation of available technology, program, or software to ensure that access to unlicensed online gambling platforms or content violative of advertisement regulations under this Act be removed, blocked, or filtered.

SEC. 14. Third-Party Auditor. - The regulatory authorities under Section 4 of this

Act shall engage the services of a third-party audit platform that would determine the gross gaming revenues or receipts of online gambling operators duly licensed and

1 regulated by them. To ensure that the proper taxes and regulatory fees are levied, 2 periodic reports about the results of the operation showing, among others, the gross 3 gaming revenue or receipts of duly licensed online gambling operators shall be 4 submitted to the Bureau of Internal Revenue (BIR) by the regulatory authorities, as 5 certified by their third-party auditor: Provided, That the third-party auditor shall be 6 independent, reputable, internationally-known, and duly accredited as such by an 7 accrediting or similar agency recognized by industry experts: Provided, finally, That 8 nothing herein shall prevent the BIR and the Commission on Audit from undertaking a 9 post-audit or independent verification of the gross gaming revenues determined by 10 the third-party auditor.

SEC. 15. Tax Treatment of Transactions Related to Online Gambling. -

a. Documentary stamp tax. - On every wager placed on online gambling games, there shall be collected a documentary stamp tax under Section 190 of the National Internal Revenue Code (NIRC), as amended. b. Tax on winnings. - On winnings from online gambling games, there shall be collected an income tax under Section 24 (B) (1) of the NIRC, as amended. Other income arising from online gambling shall be taxed in accordance with the provisions of the NIRC, as amended, and other relevant laws.

SEC. 16. Restrictions on Sponsorship. - The following restrictions shall apply to

all online gambling promotional sponsorships: a. Sponsorships shall be absolutely prohibited in any educational, sport, concert, cultural, religious or art event. Sponsorships shall also be prohibited during public events; b. No prohibited persons may participate in any sponsored events. All

communications concerning sponsored events must indicate a warning that prohibited persons are not allowed to participate in said sponsored event; c. No merchandise such as, but limited to, t-shirts, caps, sweatshirts, visors, backpacks, sunglasses, writing implements, school notebooks, umbrellas and other accessories, may be distributed, sold or offered, directly or indirectly, during the sponsored event, with the name, logo or other indicia promoting any online gambling activity or brand; d. These restrictions shall only apply to commercial sponsorships and shall not prevent a company from conducting corporate social responsibility related activities and programs: Provided, That such activities shall not bear an online gambling brand name and logo.

SEC. 17. Prohibition on Campaign Contribution. - No contribution for purposes

13 of partisan political activity shall be made directly or indirectly by any online gambling 14 operator. For this purpose, the term "contribution" includes a gift, donation, 15 subscription, loan, advance or deposit of money or anything of value, or a contract, 16 promise or agreement to contribute, whether or not legally enforceable, made for the 17 purpose of influencing the results of the elections but shall not include services rendered without compensation by individuals volunteering a portion or all of their time in behalf of a candidate or political party, as defined under Batas Pambansa Blg. 881 or the "Omnibus Election Code of the Philippines".

SEC. 18. Restricting or Blocking Access to Unlicensed Online Gambling Platform

or Prohibited Online Content. - The following shall apply: a. When an online gambling platform, without the necessary licenses from regulatory authorities, has been facilitating online gambling games and has

become accessible to the public, regulatory authorities with jurisdiction over the same shall issue a disabling order, to be implemented by the NTC through the concerned internet service providers, to restrict or block access to such platform. b. When an online content accessible to the public is found to be in violation of the advertising regulations under this Act, NTC shall issue a disabling order to restrict or block access to such online content. The disabling order shall contain sufficient information to identify the content and 9 its source, to such platform or content. All disabling orders issued and implemented shall be reported to Department of Information and Communications Technology (DICT), to monitor compliance thereto.

SEC. 19. Player Banning and Exclusion. - Online gambling platforms shall ban

13 a player from playing in its website or platform upon the request of the player or the 14 player's family members, on the ground that the player is developing gambling addiction or problems. For this purpose, the player's family members shall include 16 player's spouse, child aged 18 and above, parent, or guardian having parental 17 authority over the player.

SEC. 20. Responsible Gaming Program. - An online gambling operator must

implement a responsible gaming program geared towards its patrons in order to educate them of the different laws, rules, and regulations. The said program shall also be used to raise awareness of the different problems that may stem from gambling. This program shall include the following, among others: a. Definition of gambling; b. Problems associated with gambling;

c. Signs of gambling addiction and problems; d. List of Prohibited Persons under this Act; e. Negative impact of excessive gambling on the individual, family and society; f. Banning and exclusion procedures and forms; g. Helpline (mobile or landline) and email address and/or website of both private and government facilities where a player may seek help in case the player experiences any signs of gambling addiction and problems; and h. Contact numbers of therapists, counselors and/or rehabilitation centers. The adoption of a Responsible Gaming Program shall be a pre-requisite for the issuance of license to online gambling platforms. Failure to implement the required 11 Responsible Gaming Program shall be considered as a violation of this Act.

SEC. 21. Rehabilitation for Gambling Addiction. - Any government entity, agency

or instrumentality who are allowed to issue license to operate as an online gambling 14 operator is required to set aside ten (10%) percent of the regulatory fees and franchise fees collected from these online gambling platforms for the establishment of rehabilitation facilities for gambling addiction.

SEC. 22. Compliance Monitoring and Reporting. - Not later than one (1) year

after the effectivity of this Act, and annually thereafter, the following shall submit their respective reports to the Office of the President and to both Houses of Congress: a. Regulatory authorities with a report on: i. Online gambling operators found to violate rules on prohibited persons, advertising regulations, mandatory registration with AMLC, restrictions on online gambling promotional sponsorships, prohibition on campaign contributions, rules on player banning and exclusion, compliance with

KYC, minimum cash-in and top-up requirement, and implementation of responsible gaming program. ii. Unlicensed online gambling platforms found to be accessible to the public and the status of restricting access to such. ill. Gross gaming revenues from online gambling operations, as audited by the third-party auditor engaged. b. DICT with a report on disabling orders implemented by NTC and compliance of internet service providers on such orders; and c. BIR with a report on the internal revenue collections from online gambling operations.

SEC. 23. Penalties. - Except for specific violations and prosecution under other

laws which already provide, the following persons shall be penalized for committing 13. the following prohibited acts: a. Any person who: i. facilitates online gambling in any online gambling platform without the necessary licenses issued by the regulatory authorities mentioned under

Section 4 of this Act shall suffer the penalty of imprisonment of not less

than six (6) years not more than eight (8) years and a fine of not less than Ten million pesos (P10,000,000.00); and ii. advertises, in any form, any unlicensed online gambling platform hosting online gambling activities shall suffer the penalty of imprisonment of not less than two (2) years not more than four (4) years and a fine of not less than Five million pesos (P 5,000,000.00). b. Any licensed online gambling platform which:

i. allows prohibited persons, as enumerated under this Act, to access online gambling platforms shall suffer the penalty of fine of not less than One hundred thousand pesos (P 100,000.00) per prohibited person allowed access, and suspension of the operation of the online gambling platform for one (1) to thirty (30) calendar days; ii. fails to implement a Responsible Gaming Program required under this Act shall suffer the penalty of fine of not less than One hundred thousand pesos (P100,000.00) and suspension of the operation of the online gambling platform for one (1) to thirty (30) calendar days; iii, allows prohibited persons, as enumerated under this Act, to participate in online gambling games shall suffer the penalty of fine of not less than One hundred thousand pesos (P200,000.00) per prohibited person allowed to participate, and suspension of the operation of the online gambling platform for thirty-one (31) to sixty (60) calendar days; iv. allows cash-in below the minimum cash-in requirement set under this Act shall suffer the penalty of fine of not less than Two hundred thousand pesos (P200,000.00) per registered bettor allowed to cash-in below the threshold, and suspension of the operation of the online gambling platform for thirty-one (31) to sixty (60) calendar days; v. advertises the online gambling platform or any of its online gambling games violative of the advertisement regulations under this Act shall suffer the penalty of fine of not less than One million pesos (P1,000,000.00), and suspension of the operation of the online gambling platform for sixty-one (61) to ninety (90) calendar days;

vi. fails to implement a Responsible Gaming Program required under this Act shall suffer the penalty of fine of not less than shall suffer the penalty of fine of not less than One million pesos (P1,000,000.00), and suspension of the operation of the online gambling platform for sixty- one (61) to ninety (90) calendar days; and vii. violates any other provisions of this Act shall suffer the penalty of fine of not less than One hundred thousand pesos (P100,000.00), and suspension of the operation of the online gambling platform for thirty (30) to ninety (90) calendar days. C. Any official of the regulatory authority, as provided under this Act, which: i. allows online gambling platforms to continue facilitation of online gambling games without sanctions despite allowing access to prohibited persons and letting them participate in online gambling games shall be penalized with a fine equivalent to the official's basic salary for a period of one (1) month to six (6) months or by suspension from government service for not more than one (1) year, or both, in addition to any criminal and administrative penalties imposable under existing laws.

SEC. 24. Liability of Government Employees and Public Officials - If the

19 prohibited act is committed by a government employee or public official, he shall, in addition to the penalties provided for in this Act, be dismissed from his employment and shall be perpetually disqualified to be elected, appointed, and employed in any government office. In addition, all the retirement benefits of such government employee or public official shall be forfeited in favor of the government.

SEC. 25. Implementing Rules and Regulations. - Within sixty (60) days from the

effectivity of this Act, the DICT, in consultation with PAGCOR, special economic zone 2 authority, TIEZA, freeport authority, or any investment promotion agency, shall issue 3 the Implementing Rules and Regulations for the effective implementation of this Act: 4 Provided, That the absence of the Implementing Rules and Regulations within the specified period shall not prevent the automatic implementation and execution of the specific provisions of this Act.

SEC. 26. Separability Clause. - If any provision of this Act is subsequently

declared invalid or unconstitutional, the other provisions hereof which are not affected thereby shall remain in full force and effect.

SEC. 27. Repealing Clause. - All other laws, acts, presidential decrees, rules and

regulations or parts thereof inconsistent with the provisions of this Act are hereby expressly repealed, amended or modified accordingly.

SEC. 28. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least one (1) newspaper of general circulation: Provided, That the online posting in the website of Official Gazette shall be considered as sufficient publication under this section. Approved,