Illegal E-Gambling Sites Undermine PCSO Revenue
MANILA, Philippines — Illegal e-gambling sites continue to pose significant challenges to the Philippine Charity Sweepstakes Office (PCSO), community members reported. Concerns have risen over how these unregulated platforms not only evade government oversight but also directly compete with PCSO games, resulting in lost revenue that could have supported national programs.
During a recent hearing of the House of Representatives’ committee on appropriations, the issue of illegal e-gambling sites was highlighted early. Akbayan party-list Representative Percival Cendaña emphasized that the PCSO itself acknowledged a slight shortfall in its 2024 income targets due to competition from these illegal online games.
Uncertain Impact of Illegal Games on PCSO
When asked about the exact financial impact of illegal gambling platforms on PCSO’s potential earnings, General Manager Melquiades Robles admitted that quantifying the losses is challenging. “It’s very difficult because they really hide under, they’re below the radar, so to speak,” Robles explained.
Despite this difficulty, PCSO officials revealed that their income has seen a steady increase since the pandemic halted operations temporarily. Income rose from ₱31.35 billion in the first half of 2024 to ₱32.37 billion in the same period of 2025, reflecting a 3.3 percent growth.
Revenue Shortfall Linked to Illegal Gambling
Although PCSO’s target for 2024 was ₱63.41 billion, the agency managed to generate only ₱62.35 billion. Officials attributed this slight shortfall to the growing presence of illegal games competing with PCSO’s offerings.
Robles shared an alarming estimate highlighting the scale of illegal e-gambling: one site that used PCSO’s logo without authorization reportedly earned ₱4.7 billion in just 14 months. “There were at least 300 sites using our exact name, exact logo ng PCSO,” he noted, stressing the difficulty in tracking these operations.
Government Debates Approach to Online Gambling Regulation
The discussions extended beyond PCSO’s losses to the broader issue of regulating online gambling in the country. Debates centered on whether to impose stricter regulations and actively target illegal sites or to ban online gambling entirely.
The Philippine Amusement and Gaming Corporation (Pagcor) disclosed that it has enforced a moratorium on new licenses for online gaming sites for over a year. Pagcor chair Alejandro Tengco stated that since March 1, 2024, no new licenses have been granted. Currently, over 70 licensed online gaming platforms operate under Pagcor’s jurisdiction, including popular sites like BingoPlus, ArenaPlus, and OKBet.
Impact of BSP’s Directive on E-Wallets
Pagcor also reported a sharp decline in online gaming transactions—down by as much as 50 percent—following the Bangko Sentral ng Pilipinas (BSP) order for e-wallet providers to remove links to gambling sites. However, an unintended consequence has been a rise in users turning to illegal gaming platforms since the directive was enforced.
“It’s really hard to go after them,” Tengco told lawmakers, referring to illegal operators. He assured that licensed online gaming sites comply with the BSP’s directive. “Currently, 60 percent of what we see in the (online gaming industry) are illegal operators, meaning, those who operate outside the Philippines,” he added. These operators are often based in countries such as Russia, Dubai, Abu Dhabi, and Cambodia, complicating enforcement efforts.
Challenges in Combating Illegal Gambling
Officials highlighted the significant challenges in curbing illegal e-gambling sites due to their covert operations and foreign bases. This persistent issue reduces the revenue that PCSO could generate to fund its charitable programs, affecting communities nationwide.
Efforts continue to balance regulation and enforcement while protecting legitimate gaming operations and the national budget.
For more news and updates on illegal e-gambling sites, visit Filipinokami.com.
