Philippines Urged to Pass Law Protecting Online Gaming Regulation

Arden Consult Identifies Legal Gaps in Online Gaming Regulation

The assessment was outlined in a paper published on the global legal platform Legal 500 by Toney Quiogue, Founder and CEO of Arden Consult. According to the firm, the current regulatory structure relies primarily on PAGCOR's charter, Presidential Decree No. 1869, as amended by Republic Act No. 9487, and regulatory issuances issued by the gaming authority.

While acknowledging the progress made through recent regulatory measures, Quiogue warned that these provisions do not offer sufficient long-term legal certainty.

The paper describes the absence of a dedicated online gaming statute as the most significant regulatory gap, noting that the reforms introduced over the past year "are significant, but they can still be reversed."

"The issuances have improved the market, but they can be revised, deferred or challenged, and the charter was not written with online gaming in mind," Quiogue explained.

Proposed Law Would Define Licensing and Enforcement Powers

Arden Consult argues that dedicated legislation should establish which online gaming activities can be licensed, identify the authorities responsible for issuing licences and define the applicable licensing criteria, fees and tax obligations.

The proposed statute would also establish specific offences covering not only unlicensed operators but also third parties knowingly facilitating illegal gambling activities. These would include payment processors, advertisers and individuals involved in recruiting players for unauthorised platforms.

The firm further recommends granting the regulator clearer enforcement powers, including the authority to order the blocking of illegal gambling websites, instruct banks and e-wallet providers to stop processing transactions linked to unauthorised operators, and coordinate with the Anti-Money Laundering Council to trace financial flows.

Quiogue highlighted the limitations of relying exclusively on website blocking, as illegal operators can quickly move to alternative domains. Payment channels, by contrast, are more difficult to replace, making financial controls an important component of enforcement strategies.

PAGCOR Reforms Helped Prevent Calls for a Total Ban

The paper also recognises PAGCOR's role in maintaining a regulatory approach amid political pressure for a complete prohibition of online gaming in 2025.

The authority responded by implementing stricter requirements designed to strengthen player protection and oversight of the licensed market. Measures included mandatory full Know Your Customer (KYC) verification before players could fund their accounts, raising the minimum gambling age to 21, removing gambling advertisements from billboards and primetime broadcasts, and introducing mandatory self-exclusion tools.

These changes helped address political concerns while allowing the regulated online gaming sector to continue operating.

However, Arden Consult argues that regulatory issuances alone cannot provide the stability required for long-term market development.

Legal Certainty as a Tool for Market Channelization

The firm maintains that predictable and transparent rules are essential to directing players towards licensed platforms and reducing the presence of illegal operators.

Published implementation timelines, consultation drafts and a consistent fee policy could contribute to a more stable operating environment, making regulatory requirements easier for both operators and authorities to implement.

Quiogue also stressed the difference between imposing a prohibition and developing a sustainable regulatory system.

"A ban can be announced quickly. Regulation takes longer and requires continuing engagement between government and industry. The Philippines chose regulation, and PAGCOR has implemented that choice despite considerable political pressure," she stated.

The firm's position is that the next step should be legislation capable of securing the existing framework against future political or administrative changes.

"What is needed now is a law that puts the framework on a firm legal footing, keeps the licensed market competitive, and gives the regulator the enforcement powers it needs," Quiogue added.

She concluded that the adoption of a dedicated online gaming statute could strengthen the Philippines' position as a regional regulatory reference point. "If Congress passes such a law, the Philippines can serve as a model for other emerging markets in the region."