The Philippine government is exploring mandatory Philippine Stock Exchange (PSE) listings for all licensed online gambling operators. This initiative, reported by The Inquirer, aims to bolster transparency and accountability within the industry.
Finance Secretary Ralph Recto proposed this measure, suggesting that mandatory PSE listings would unveil the identities of the companies’ ultimate beneficial owners. Publicly traded companies are subject to stringent reporting requirements, providing regulators and investors with enhanced oversight of financial performance and ownership structures.
Simultaneously, authorities are considering a substantial increase in taxes and fees levied on online gambling businesses. A 10% tax increase could generate an additional PHP 10 billion (approximately $170 million) in annual revenue. Currently, operators contribute 30% of their revenue to the Philippine Amusement and Gaming Corporation (PAGCOR), a 5% franchise tax to the Bureau of Internal Revenue, and further fees for audits.
DigiPlus Interactive Corp, the operator of BingoPlus, ArenaPlus, and GameZone, has publicly endorsed tighter regulation. The company already employs robust measures, including know-your-customer (KYC) verification, age verification, and responsible gaming monitoring. However, the company recently experienced significant market volatility, suffering a near 30% single-day decline and a 70% drop from its June peak.
Bloomberry Resorts Corp, the parent company of the recently launched MegaFUNalo platform, also faced a 5.6% share price decrease. Market analysts attribute this downturn to the uncertainty surrounding impending policy changes and the intensifying demand for greater industry oversight.
The push for stricter online gambling regulations follows the introduction of a relevant bill by Senator Sherwin Gatchalian and aligns with the central bank’s efforts to curtail the use of e-wallets for gambling transactions. The proposed regulations are anticipated to be implemented concurrently, combining mandatory PSE listings with increased tax burdens for licensed operators.
