Republic of the Philippit
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City
Twentieth Congress
First Regular Session

House Bill No. 1391

Introduced by Honorable Representatives
JOSE MANUEL TADEO “CHEL” I. DIOKNO (Akbayan Partylist)
PERCIVAL V. CENDANA (Akbayan Partylist)
DADAH KIRAM ISMULA (Akbayan Partylist)
ARLENE “KAKA” J. BAG-AO (Dinagat Islands)

(AN ACT REGULATING ONLINE GAMBLING IN THE PHILIPPINES, REDUCING
GAMBLING-RELATED ADDICTION AND HARM, ESTABLISHING A HARM
MITIGATION LEVY, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

‘The Kontra e-Sugal Act of 2025 seeks to establish a framework to regulate online
gambling in the Philippines. Its goals are to safeguard public welfare, protect vulnerable
groups, and ensure responsible gambling practices.

Online gambling is accessible anytime, anywhere and often anonymously, making
it particularly addictive and harmful to minors, persons who may be vulnerable to the lure
of gaining easy money, and those desperate to make ends meet. Online gambling thus
poses unique and costly risks, not only for those who gamble but also their families,
communities, and Philippine society. The absence of regulatory controls has led to a rise
of gambling-related problems, including financial meltdowns, family breakdowns,
gambling addiction, depression, and other mental health issues.

The Constitution mandates the State to “promote a just and dynamic social order
that will ensure the prosperity and independence of the nation and free the people from
poverty through policies that provide adequate social services, promote full employment,
a rising standard of living, and an improved quality of life for all.”! Yet there is presently
no law specifically regulating online gambling platforms in the country. The State, in the

* Article tl, Section 13, 1987 Constitution.


exercise of its inherent police power, must act decisively to protect the physical, mental,
and social well-being of its citizens from the growing harms associated with online
gambling.

Hence this proposed legislation, which seeks to (1) establish strict age verification
protocols; (2) prescribe limits on advertising and promotion; (3) implement a national-
self-exclusion registry; (4) impose betting loss limits; (5) prescribe minimum guidelines
for player protection; (6) create a harm mitigation levy; (7) recognize gambling disorder
as a public health condition; (8) ban campaign contributions from gambling operators;
and (9) implement strict penalties for unlicensed operators and non-compliant persons.

HEL” I. DIOKNO
Akbayan Representative

fAL V. CENDAI DADAH ISMULA
Akbayan Representative Akbay: epresentative
. BAG{AO

Dinagat Islands Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City
Twentieth Congress
First Regular Session

House Bill No. 1391

Introduced by Honorable Representatives
JOSE MANUEL TADEO “CHEL” I. DIOKNO (Akbayan Partylist)
PERCIVAL V. CENDANA (Akbayan Partylist)
DADAH KIRAM ISMULA (Akbayan Partylist)
ARLENE “KAKA” J. BAG-AO (Dinagat Islands)

AN ACT REGULATING ONLINE GAMBLING IN THE PHILIPPINES,
REDUCING GAMBLING-RELATED ADDICTION AND HARM, ESTABLISHING
AHARM MITIGATION LEVY, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in

Congress assembled:

SECTION 1. Short Title. - This Act will be known as the “Kontra e-Sugal Act of
2025",

Sec, 2. Declaration of Principles and Policies. — Article II, Section 5 of the
Constitution provides that “the maintenance of peace and order, the protection of life,
liberty, and property, and the promotion of the general welfare are essential for the
‘enjoyment by all the people of the blessings of democracy.” Article II, Section 9 of the
Constitution provides that “[t{he State shall promote a just and dynamic social order
that will ensure the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all.” In line
with these fundamental principles and policies, the State adopts the principle that
online gambling must be strictly regulated to protect the general welfare, promote the
well-being of the youth, preserve family harmony, and break the cycle of poverty. The
State, moreover, adopts the policy that gambling disorders pose a risk to public health
and economic well-being which requires that the State take a comprehensive,


1
2

evidence-based, and multi-sectoral approach to prevent and mitigate gambling-related
harms.

Sec. 3. Definition of Terms. - For the purposes of this Act, the following
definitions apply:

a. “Online Gambling” refers to the conduct of chance-based games or taking of
wagers consisting of money or articles of value using the internet or digital
devices, including the offering of online gambling games or wagering via online
gambling platforms outside the gaming area of a land-based casino.

b. “Online Gambling Platform” refers to a web or mobile-based system that
allows registered users to gamble remotely online.

c. “Online Gambling Operator” refers to a licensed individual or entity that
runs online gambling platforms or service providers providing indispensable
service to the online gambling operation.

d. “Self-Exclusion” refers to a system that allows individuals to voluntarily ban
themselves from gambling activities.

e. “Super App” refers to a single mobile/web app offering multiple services like
messaging, e-commerce, finance, transport, delivery, or more.

f. “Harm Mitigation Levy” refers to a tax on online gambling operators to fund
programs that reduce gambling-related harms.

g. Know Your Customer (KYC) standards are a set of security procedures
financial institutions and other regulated entities use to verify the identity of
their customers and assess the legitimacy of their activities.

h. “Uniform Resource Locator (URL)” refers to the unique identifying address
used to access resources on the internet.

I. ACCESS RESTRICTIONS

Sec. 4. Age restrictions. Only individuals twenty-one (21) years of age or older
are allowed to register and participate in online gambling platforms. All licensed online
gambling operators must implement age verification systems using government-
issued or equivalent digital identification consistent with existing Know-Your-Customer
(KYC) standards.


eo

©eONDOaOA

The Philippine Amusement and Gaming Corporation (PAGCOR) will issue guidelines,
conduct audits, and impose administrative sanctions, including fines, suspension, or
revocation of license for non-compliance with the minimum age verification standards.

Sec. 5. Access Restrictions via electronic wallets and super apps.
Electronic wallets and super apps are prohibited from linking to online gambling
platforms through uniform resource locators (URLs), app links, hyperlinks, and other
similar methods. Existing links must be removed upon the passage of this Act.
All account funding and withdrawals must go through Anti-Money Laundering Council
(AMLC)-compliant channels, such as over-the-counter and online banking; Provided,
that account funding through credit cards or other credit facilities will only be allowed
for accounts with low financial risk, based on PAGCOR and existing KYC standards.

Electronic wallets and super apps are prohibited from advertising online gambling
within their platforms.

Sec. 6. Self-exclusion. A National Online Gambling Self-Exclusion Registry will
be established upon the effectivity of this Act, to be maintained and administered by
PAGCOR in coordination with licensed online gambling operators.

Individuals who wish to voluntarily restrict their access to online gambling activities
may enroll themselves in the Self-Exclusion Registry through a secure digital platform
to be developed and maintained by PAGCOR. Once enrolled, the individual's existing
‘online gambling accounts will immediately be suspended, and a block will be imposed
‘on new registration during the period of self-exclusion.

All licensed operators must:

a. Integrate their platforms with the National Online Gambling Self-Exclusion
Registry and comply with real-time data synchronization protocols prescribed
by PAGCOR;

b. Suspend or deactivate any gambling account linked to an individual listed in
the registry and prevent re-registration attempts for the duration of self-
exclusion;


aR wN

o

22
23
24
25
26

2

28
29

c. Enforce a minimum period for self-exclusion of six (6) months, renewable by
the user, with reactivation subject to psychological screening and a cooling-
off period as may be determined by PAGCOR;

d. Display self-exclusion options and information on gambling harm on their
platforms.

PAGCOR will oversee compliance, conduct regular audits, set technical standards, and
protect data under the Data Privacy Act of 2012.

Sec. 7. Family member-initiated player banning. Immediate family
members, which include the spouse, parent, adult child, or guardian, may request a
temporary ban on the access to online gambling platforms of an individual showing
signs of harmful gambling behavior. PAGCOR will define procedures, and all operators
must enforce these bans across all platforms. Any misuse or abuse of this remedy by
a family member or guardian, including false or malicious allegations, will be penalized
under applicable laws on perjury and civil damages.

Sec. 8. Betting loss limits. Operators must enforce daily, weekly, and
monthly maximum limits on betting and losses. PAGCOR, in coordination with the
Bangko Sentral ng Pilipinas (BSP) will set and update these limits based on evidence-
based harm prevention standards, income data, and financial profiles. Once the
maximum limit is reached, the player is suspended for a mandatory cooling-off period
of not less than thirty (30) calendar days. Reactivation requires consent, gambling risk
reminders, and additional identity verification.

Operators are prohibited from offering promotions, bonuses, or targeted advertising
to any user under suspension and within seven (7) days after the expiration of the
cooling-off period. PAGCOR is tasked to audit the compliance of operators with this
Section. Non-compliance may lead to fines, suspension, or license revocation, without
prejudice to other civil, criminal, or administrative liabilities.

TI. ENHANCED DUTY OF CARE AND PLAYER PROTECTION

Sec. 9. Mandatory Checks on Affordability and Sources of Funds.
Online gambling platforms must implement mandatory affordability checks on players

4


22
23
24

25
26
27
28
29
30

at the point of account registration and periodically thereafter. These checks will look
into the player’s source or sources of funds, and assess whether the player can afford
to gamble without facing financial harm, based on income, expenses, and other
relevant financial indicators. PAGCOR, in consultation with the Bangko Sentral ng
Pilipinas (BSP) and the Anti-Money Laundering Council (AMLC), will provide detailed
guidelines on the methodology, thresholds, and permissible data sources for these
checks, which must comply with the Data Privacy Act of 2012 (RA 10173).

Sec. 10. Restriction of Play Based on Affordability. When mandatory
checks provided in Section 9 find that a player cannot afford to gamble without facing
financial harm, or has unclear or questionable source of funds, the online gambling
platform must immediately restrict his or her ability to deposit or wager. The
restrictions may come in the form of setting deposit limits, restricting access to high-
stakes games, or suspending or terminating the player's account. The platform must
also clearly inform the player and offer support resources.

Sec. 11. Proactive Monitoring of Player Activity. Online platforms must
use real-time systems to track player behavior for signs of gambling harm. These
systems should flag unusual spending, long play times, sudden changes in behavior
or signs of distress, use or non-use of gambling management tools, and other relevant
account indicators as defined by PAGCOR. PAGCOR will issue detailed guidelines on
the specific behavioral indicators of harm and the technical standards for such
monitoring systems.

Sec. 12. Tailored and Escalating Interventions. When signs of harm are
detected, platforms must take timely and appropriate action. These interventions may
include:

a. automated personalized messages;

b. mandatory ‘reality checks’ or ‘take a break' prompts that temporarily halt
gameplay at defined intervals or after significant play duration or
cumulative loss;

c. direct human interaction with staff specifically trained in harm
identification;


RON

a

22
23
24
25

27

28

d. temporary account suspensions for players exhibiting escalating risk
profiles;

e. stoppage of all marketing communications for players identified with
moderate to high indicators of harm; and

PAGCOR will issue and periodically update guidelines specifying the types of
interventions, their triggers, and the escalation protocols to be followed by licensed
operators.

Sec. 13. Algorithmic Integrity, Evaluation, and Player Rights. Any
algorithms used to detect risky behavior or make automated decisions must be audited
regularly by independent, accredited third-party organizations. These audits must
ensure fairness and prevent misuse. Platforms must also review how effective their
interventions are, and show PAGCOR proof of reduced gambling harm.

Sec. 14. Game Integrity. A\l online gambling platforms must ensure the
integrity and fairness of their games through the mandatory use of certified Random
Number Generators and transparent Return to Player metrics.

(a) Random Number Generators (RNGs)- All games offered by online gambling
platforms that rely on random outcomes must utilize a certified Random Number
Generator (RNG). RNGs must be independently tested and certified by an accredited
third-party testing laboratory to ensure statistical randomness, unpredictability, and
non-repeatability of outcomes. Certification reports must be submitted to PAGCOR
annually.

(b) Return to Player (RTP) Metrics- Each game must clearly show its RTP (theoretical
payout rate). This information must be easy for players to see before and during the
game, PAGCOR will set minimum RTP standards to ensure fairness. PAGCOR is
directed to establish minimum RTP standards.

(c) Audits and Compliance- PAGCOR must regularly audit online gambling platforms
and may require third-party checks to ensure compliance with RNG and RTP rules.


Noanwn

20
21
22
23
24
25

III, MARKETING AND ADVERTISING RESTRICTIONS

Sec, 15, Ban on Public Space Advertising. Online gambling advertisements
are strictly prohibited in public spaces, including but not limited to billboards, transit
advertisements, building wraps, posters, LED screens, and other out-of-home or
street-level media. Advertisements are only allowed within licensed venues where
minors are prohibited; Provided that, advertisements must be at least 100 meters
away from schools, churches, or play areas.

Sec, 16. Prohibited Media Channels. Advertisements for online gambling
services are prohibited in traditional media channels such as TV, radio, print, and
digital platforms including social media, mobile apps, websites, or other internet-based
communication channels accessible to the public.

Sec. 17. Responsible Gambling Messages. All permissible advertisements
must include visible warnings about gambling risks and helpline information, as
prescribed by PAGCOR.

Sec. 18, Ban on Sponsorships and Donations. Online Gambling Operators
are strictly prohibited from sponsoring educational, sports, cultural, religious, or public
events. Community sponsorships as part of corporate social responsibility are allowed
only if no branding or gambling references appear on merchandise or donations.

IV. TAX ON ONLINE GAMBLING

Sec. 19. Harm Mitigation Levy. To finance the social costs of online
gambling and finance programs aimed at minimizing its harmful effects, a ten percent
(10%) levy on gross revenues of online gambling operators will be collected by the
BIR and placed in a Special Gambling Harm Reduction Fund, managed by the
Department of Health (DOH), in coordination with PAGCOR, the Department of Budget
and Management (DBM), and the Department of Finance (DOF).

The Fund Allocation is as follows:


22
23
24
25

27
28
29
30

f. Forty (40%) — Establishment of treatment and rehabilitation centers for
individuals with gambling addiction;

g. Thirty (30%) — Public education and awareness campaigns on gambling risks
to be implemented by the DOH, DepEd, and the Presidential Communications
Office (PCO);

h. Twenty (20%) — Regulatory enforcement and capacity-building of PAGCOR and
other concerned agencies; and

i. Ten (10%) — Research and policy evaluation.

Non-payment may result in license suspension, revocation, or penalties.

All disbursements from the Fund are subject to existing auditing and
accountability laws and will be reported annually to Congress by the DOH and
PAGCOR, with full transparency and public disclosure requirements. Failure to pay the
Harm Mitigation Levy constitutes a ground for license suspension or revocation, in
addition to applicable fines, surcharges, and penalties under the National Internal
Revenue Code, as amended.

V. PUBLIC HEALTH APPROACH

Sec. 20. Public health interventions to gambling disorders. Gambling
disorder is hereby recognized as a public health issue. Funded by the 40% share from
the Levy as discussed in Section 14, the DOH must ensure access to treatment for
persons with gambling disorders, including:

a. Establishment of Gambling Addiction Treatment Centers — The DOH, in
coordination with the DSWD establish and accredit treatment and rehabilitation
centers for gambling addiction, provide clinical assessment and diagnosis,
Cognitive Behavioral Therapy, counseling, and peer support systems.

b. Community-Based Programs and Support — The DOH and DSWD will
develop intervention programs, including:

a. 24/7 hotline services for individuals and families in crisis;

b. Mobile mental health teams trained in gambling-related harm;

c. Outreach and education sessions in schools, barangays, and
workplaces.


22
23
24

25

27

c. Accreditation and Training — This Act authorizes the DOH to develop
training programs and guidelines for the certification of providers treating
gambling addiction.

d. PhilHealth Coverage — Gambling disorder treatment is integrated into the
Philippine Health Insurance Corporation's (PhilHealth) benefit Packages as a
covered mental health condition under the Universal Health Care Act. Gambling
disorder is hereby included into the National Mental Health Program of the DOH.

e. Monitoring and Evaluation. PAGCOR and DOH will establish an annual
monitoring and evaluation framework to asses and evaluate program outcomes
and impact. The data gathered will be publicly reported and used to improve
Program design.

In formulating the interventions under this Section, the DOH is directed to create an
advisory group composed of relevant stakeholders like medical associations, non-
government organizations, and patients’ rights networks, to ensure updated,
evidence-based, rights-based and victim centered interventions and effective service
delivery. Persons in recovery will be protected from discrimination and stigma, with
gambling disorder covered under RA 11036 or the Mental Health Act.

VI. ONLINE GAMBLING AND PUBLIC OFFICERS

Sec, 21. Gambling Ban for Public Servants. — All government employees,
including AFP and PNP personnel, are prohibited from engaging in online gambling.
Violations of this provision shall constitute administrative misconduct.

Sec, 22, Ban on Political Contributions. Online gambling operators are
Prohibited from making political contributions in any form, directly or indirectly, to
influence elections.

VIL. PENALTIES

Sec, 23. Penalties, Without prejudice to other applicable laws, the following
penalties apply:


. Unlicensed Operators — Any person found to facilitate online gambling

operations without the necessary licenses mentioned under Section 4 of this
Act will suffer the penalty of imprisonment of six (6) to eight (8) years and a
fine of P10 million for any person.

Allowing Prohibited Users — Online gambling platforms that allow access to
minors, individuals in self-exclusion, or public officers will be fined P100,000 for
each minor, self-excluded individual or public officer allowed to gamble; and
suspension of the operations of the online gambling platform for one (1) to
thirty (30) calendar days.

. Illegal Access via E-Wallets or Super Apps - Platforms allowing access

through the channels mentioned in Section 5 of this Act will be fined five million
pesos (P5,000,000.00), permanent deactivation of the platform, and revocation
of the license of the operator. The penalty also applies to the e-wallet or super
app.

. Enhanced Duty of Care and Player Protection Violations — Any online

gambling platform which violates the provisions of Chapter II will suffer the
penalty of a fine of not less than Five hundred thousand pesos (P500,000.00)
for the first offense, and for subsequent offenses, a fine of not less than One
million pesos (P1,000,000.00) and suspension of operation for thirty (30) to
ninety (90) calendar days.

. Marketing & Advertising Violations - Any person who violates the

provisions of Chapter III will suffer the penalty of fines between one million
pesos (P1,000,000.00) to a maximum of five million pesos (P5,000,000.00), as
determined by the court.

. Other Violations - A fine of one hundred thousand pesos (P100,000) and

thirty (30) to (90) days suspension for any other violation of this Act. The
maximum penalty will be applied for a second violation of the same offense. A
third violation will result in the permanent deactivation and revocation of the
operator's license.

. Public Officers - Any public officer charged with ensuring compliance with

the provisions of this Act, who commits negligence in performing his or her
duties under this Act, will suffer the penalty of one (1) to six (6) months

10


Ron

©oonrnon

imprisonment. Any public officer who willfully violates the provisions of this Act
will suffer the penalty of six (6) months and one (1) day to six (6) years
imprisonment, dismissal from the service, and perpetual disqualification from
public office, as may be determined by the court.

Sec. 24, Implementing rules and regulations. Within sixty (60) days from
the effectivity of this Act, the Department of Information and Communications
Technology (DICT), in consultation with PAGCOR, BSP, special economic zone
authority, TIEZA, freeport authority, or any investment promotion agency, is directed
to issue the Implementing Rules and Regulations (IRR). That the absence of the IRR
within the specified period will not prevent the automatic implementation and
execution of the specific provisions of this Act.

Sec. 25. Separability Clause. - If for any reason, any part or provision of this
Act is held unconstitutional or invalid for any reason, the remaining parts or provisions
Not affected will continue in full force and effect.

Sec. 26. Repealing Clause. - A\l laws, decrees, executive orders, proclamations,
rules and regulations, and other issuances, or part or parts thereof, inconsistent with
the provisions of this Act, are hereby repealed, amended, or modified accordingly.

Sec. 27. Effectivity. - This Act takes effect fifteen (15) days after its publication
in two (2) newspapers of general circulation.

Approved,