A veteran gaming industry consultant has warned that implementing a total ban on online gambling in the Philippines would be a “complete mistake,” advocating instead for stricter regulation to maintain the sector’s substantial economic contributions while protecting players.
Alex Czajkowski, CEO of gaming market research firm Players Today and veteran iGaming consultant, told AGB that robust regulatory frameworks should strengthen rather than undermine investor confidence in the Philippine gaming sector. His comments come as lawmakers intensify calls for a complete prohibition on online gambling, with President Ferdinand Marcos Jr. expected to address the issue during his State of the Nation Address (SONA) scheduled for July 28th.
“Having a robust and active regulatory body that is looking to protect players and protect the operators from predatory offshore competitors shows how serious the Philippines is about building a healthy and thriving industry,” Czajkowski said, arguing that regulatory activity should boost rather than diminish investor confidence.
Lawmakers push for complete prohibition
The debate over online gambling regulation has intensified following the formalization of the Philippine Offshore Gaming Operator (POGO) ban seven months ago. Several senators, including Juan Miguel Zubiri and Raffy Tulfo, have filed bills seeking a complete ban on online gambling activities, describing the industry as an “epidemic” requiring immediate government intervention.
However, the Philippine Amusement and Gaming Corporation (PAGCOR) has rejected proposals for total prohibition, citing the industry’s massive economic impact. PAGCOR Chair and CEO Alejandro H. Tengco revealed that the government generates more than 100 billion pesos ($1.8 billion) annually from online gambling operations, supporting approximately 32,000 direct employees and numerous ancillary businesses.
Czajkowski emphasized that complete prohibition represents a fundamental misunderstanding of both Filipino culture and regulatory best practices. “Gambling is the world’s 2nd oldest profession, and has been part of Filipino culture for 100s of years,” he noted, referencing how national hero José Rizal used gambling winnings to purchase a farm and citing the centuries-old tradition of games like jueteng and sabong.
International regulatory failures offer cautionary tales
The consultant warned that overly restrictive regulations could drive the industry underground, pointing to failed regulatory models in Germany and the Netherlands where players migrated to offshore operators.
“We’ve seen disastrous results from regulations in Germany and the Netherlands, where players are leaving the overly-regulated sites for offshore operators … None of those proceeds make it back to the players’ countries.”
Alex Czajkowski
His warnings carry particular weight given Indonesia’s experience with complete online gambling prohibition. Despite deploying 150 specialists operating 24 hours daily and blocking close to 3.8 million gambling sites between July 2023rd and October 2024, underage gaming remains prolific in the country. 1 major slots provider has identified Indonesia as their top revenue source, highlighting the ineffectiveness of total bans.
“We know banning it doesn’t work. It’s banned in China, yet more bets are made on EPL on a weekend than in a month in the UK,” Czajkowski concluded.
Industry demonstrates strong growth momentum
The Philippine gaming sector has demonstrated remarkable growth, with Gross Gaming Revenue in the first quarter of 2025 maintaining a 27.44 percent growth pace. Notably, half of this revenue came from e-games, marking a historic first for the industry.
Current regulatory discussions encompass various measures including minimum wager restrictions, age verification improvements, e-wallet limitations, enhanced self-exclusion tools, and advertising restrictions. The government is also considering a 10 percent tax increase on online gambling operators, though gaming lawyer Tonet Quiogue has warned that operators already face some of the world’s heaviest tax burdens.
Stakeholder collaboration essential for effective regulation
Czajkowski stressed that effective regulation requires collaboration between all stakeholders, including operators, e-wallets, and telecommunications companies. He highlighted the importance of properly implementing existing Know Your Customer (KYC) and responsible gaming regulations rather than creating entirely new frameworks.
“The nightmare scenario for the industry is when an under-21 child of a prominent politician joins a site on their phone, deposits from their GCash account, and either wins and gets blocked at KYC or loses and complains.”
Alex Czajkowski emphasized the need for coordinated age verification across all platforms.
The consultant noted that Filipino players prefer PAGCOR-regulated sites when they can access desired games and competitive odds, suggesting that proper regulation can effectively compete with offshore operators. However, he acknowledged that no Tier-1 Western operators are currently seeking Philippine licenses, attributing this partly to infrastructure and political challenges.
