MANILA, Philippines As lawmakers move to rein in online gambling, one House bill takes it a step further by proposing to slap a 10% tax on operators to fund addiction treatment and recovery programs.
House Bill 1351, also known as the Kontra e-Sugal Act of 2025, was filed on July 7 to push for a whole-of-government response to the growing online gambling industry.
With reports of families strained and finances crumbling under the weight of online gambling, lawmakers from both the House and Senate have responded by filing bills to limit its accessibility.
While earlier proposals targeted e-wallet restrictions and minimum bet limits, House Bill 1351 takes a different route by introducing an online gaming tax to fund public health programsmuch like existing sin taxes on tobacco and alcohol.
The measure seeks to establish a Special Gambling Harm Reduction Fund, financed by a 10% tax on online gambling operators gross revenues, to be collected by the Bureau of Internal Revenue (BIR).
Online gaming operators who fail to pay the tax may face license suspension, revocation, or penalties such as fines and surcharges.
How will the fund be allocated?
Most of the fund will be used to help build and sustain rehabilitation centers for those battling gambling addiction, while also supporting education and awareness efforts:
- 40% to establish treatment and rehab centers
- 30% to conduct public education and awareness campaigns on gambling risks
The bill mandates the Department of Health (DOH), in coordination with the Department of Social Welfare and Development, to utilize the 40% to provide clinical assessment, therapy, counseling, and peer support in rehabilitation centers.
Both agencies will also be tasked with developing community-based support, including a 24/7 crisis hotline, mobile mental health teams trained in gambling-related harm, and outreach sessions.
It also proposes including gambling disorder treatment in the Philippine Health Insurance's benefit packages under mental health coverage.
The rest of the fund will be used to strengthen regulatory enforcement and enhance the capacity of the Philippine Amusement and Gaming Corporation and other relevant agencies (20%), as well as support research and policy review (10%).
The fund will be managed by the DOH, in coordination with PAGCOR, the Department of Budget and Management and the Department of Finance.
With electronic gaming on the rise, PAGCOR projects up to P480 billion in gross gaming revenue for 2025. The segment already accounted for 38% of last years P410 billion total.
The agencys revenue is already being used to contribute to government programs.
What about e-wallets?
Like other proposals, House Bill 1351 would ban e-wallets and super apps from linking to online gambling sites.
However, what makes it unique is its mandate requiring all gambling transactions to go through approved channels by the Anti-Money Laundering Council (AMLC), such as over-the-counter transactions or online banking.
Credit card payments would only be allowed for users considered low financial risk.
The bill would also prohibit e-wallets from displaying or promoting online gambling ads on their platforms.
Online gambling requirements
For online gambling operators, the bill requires them to assess a players source of funds and spending habits to determine whether they can afford to gamble without financial harm.
Those who fail the assessment may face lower deposit limits, account suspension, or termination.
Platforms must also use real-time monitoring to detect risky behavior, such as excessive spending or prolonged play, and respond with automated prompts like take a break or reality check, along with human staff intervention.
Daily, weekly, and monthly betting and loss limits should also be set based on a player's financial profile, with a cooling-off period triggered once limits are reached.
Families who notice relatives showing signs of harmful gambling behavior may request a temporary gambling ban, while individuals may also opt to restrict themselves.
Gambling ban for public officials
The bill also prohibits public officials, including police and military personnel, from engaging in online gambling. Violations will be treated as acts of administrative misconduct.
It also bars online gambling operators from making direct or indirect political contributions that may influence the outcome of elections.
The proposed Kontra e-Sugal Act of 2025 was filed by Akbayan Party-list Representatives Chel Diokno, Perci Cenda�a, and Dadah Ismula. It was also introduced by Rep. Arlene Bag-ao (Dinagat Islands, Lone District).
We need a whole-of-government approach if we want to combat the ill effects of online gambling. Wag nating hayaang isugal ng ating mga kababayan, hindi lang ang kanilang pera kundi pati buhay at pangarap, Diokno said in a statement.
(Lets not allow our fellow Filipinos to gamble away not just their money, but also their lives and dreams.)
