DigiPlus Interactive Corp chairman Eusebio Tanco has called on Philippine regulators and lawmakers to impose a standardized tax regime on all licensed online gaming operators in the country, arguing that the current patchwork of fiscal obligations creates an uneven competitive landscape. The push comes as the Philippines continues to refine its regulatory approach to iGaming, a sector that generated billions of pesos in revenue last year but remains fragmented across multiple licensing frameworks. Tanco’s position carries weight: DigiPlus, which operates the BingoPlus platform, holds one of the largest online gaming licenses issued by the Philippine Amusement and Gaming Corporation (PAGCOR).
What’s Driving the Call for Tax Parity in Philippine iGaming
The core issue, at least on paper, is straightforward. Different operators licensed under different schemes currently face varying tax rates and compliance burdens. Some entities operate under PAGCOR’s direct licensing authority, while others hold permits through special economic zones or legacy arrangements that carry distinct fiscal terms. That asymmetry, Tanco argues, disadvantages operators who comply with the full weight of PAGCOR’s regulatory and tax requirements.
This isn’t merely a corporate grievance. When licensed operators face higher effective tax rates than competitors offering similar products, the incentive structure tilts toward regulatory arbitrage (a distinction regulators have been slow to enforce). Operators with lighter fiscal loads can price more aggressively, offer richer promotions, and reinvest more heavily in customer acquisition.
The result: a market where compliance becomes a competitive disadvantage rather than a baseline expectation.
Strategic Implications of Tanco’s Proposal for the Philippine Gaming Sector
Before unpacking the broader consequences, it helps to isolate the key business signals embedded in this development.
- Revenue protection for compliant operators: A unified tax framework would eliminate the cost gap between fully licensed PAGCOR operators and those benefiting from lower-tax arrangements, protecting margins for companies like DigiPlus
- Regulatory consolidation signal: Tanco’s advocacy aligns with a broader trend in Philippine gaming policy toward centralizing oversight under PAGCOR, reducing the role of competing licensing bodies
- The proposal could accelerate the exit of smaller, undercapitalized operators who relied on favorable tax treatment to remain viable
- Foreign investor confidence: Standardized taxation reduces uncertainty for international gaming companies evaluating Philippine market entry or expansion
- Government revenue upside: Harmonizing rates at a level closer to PAGCOR’s existing framework could increase aggregate tax collection from the sector without raising headline rates
How DigiPlus Fits Into the Broader Regulatory Picture
DigiPlus Interactive, formerly known as Leisure & Resorts World Corporation, has positioned itself as one of the Philippines’ most prominent digital gaming platforms. The company’s flagship BingoPlus platform has expanded rapidly, reporting significant user growth across multiple quarters. Its scale gives Tanco a credible platform from which to lobby for structural reform.
But the chairman’s push also reflects a defensive posture. As the Philippine online gaming market matures, operators with heavier regulatory overhead face margin compression unless the playing field is leveled. Tanco has been vocal about the need for regulatory consistency, and this latest call sharpens that message into a specific policy demand: equal tax treatment for equal activity.
Whether PAGCOR and the Department of Finance will act on the proposal remains an open question. Regulatory harmonization in gaming has historically moved slowly in the Philippines, complicated by overlapping jurisdictional claims and entrenched interests among existing licensees.
The Competitive Dynamics Behind Tax Harmonization
Consider the mechanics. An operator paying a 5% gross gaming revenue tax competes directly against one paying 2% under a different licensing scheme. Over a full fiscal year, that three-percentage-point gap compounds into a substantial difference in available capital for marketing, technology investment, and player retention programs. In a market where customer acquisition costs are rising and product differentiation is narrow, that gap matters enormously.
| Factor | Current State | Under Proposed Harmonization |
|---|---|---|
| Tax rates across operators | Variable, depending on license type and issuing authority | Standardized across all PAGCOR-regulated entities |
| Competitive balance | Favors operators with legacy or SEZ-based licenses | Neutral, based on operational merit |
| Regulatory complexity | Multiple overlapping frameworks | Simplified, single-framework approach |
| Government revenue predictability | Fragmented collection, harder to forecast | More consistent and auditable revenue streams |
Still, not all market participants see harmonization as purely beneficial. Smaller operators with favorable existing arrangements would face immediate cost increases, and some industry voices have quietly questioned whether uniformity might stifle the competitive diversity that has driven rapid sector growth.
Why Framing Shapes Regulatory Outcomes
Tanco’s framing of this issue deserves attention beyond the policy specifics. By anchoring the argument in fairness and compliance rather than corporate self-interest, he shifts the narrative toward a principle that regulators find difficult to publicly oppose. This is a classic reframing technique: the proposal benefits DigiPlus materially, yet the language centers on market integrity and government revenue.
That framing also taps into a broader regulatory mood in Southeast Asia, where governments from Cambodia to Singapore have moved toward tighter, more centralized gaming oversight. Philippine regulators are aware of these regional precedents. When a major domestic operator aligns its lobbying with the direction neighboring jurisdictions are already traveling, the argument gains gravitational pull.
Perception matters in regulatory advocacy. Operators who position themselves as partners in governance rather than subjects of it tend to secure more favorable long-term outcomes. Tanco appears to understand this dynamic well, and his public statements have consistently emphasized alignment with PAGCOR’s stated objectives of transparency and accountability.
What remains less clear is whether PAGCOR itself has the political capital to push through harmonization against resistance from operators who benefit from the status quo. Regulatory reform in gaming rarely happens without friction, and the Philippines is no exception.
Frequently Asked Questions
What tax framework does DigiPlus currently operate under?
DigiPlus operates under PAGCOR’s licensing and regulatory framework, which includes specific gross gaming revenue tax obligations that apply to all direct PAGCOR licensees.
Why do different Philippine online gaming operators pay different tax rates?
The variation stems from multiple licensing pathways. Some operators hold permits through special economic zones or legacy arrangements that carry distinct, often lower, fiscal terms compared to standard PAGCOR licenses. This creates an uneven competitive environment that Tanco and others have flagged as problematic.
Would tax harmonization affect offshore gaming operators?
Tanco’s proposal appears focused on domestically licensed operators serving the Philippine market. Offshore operators, including those formerly classified under the POGO framework, face a separate and evolving set of regulatory and tax requirements that have been subject to significant recent reform.
How likely is regulatory action on this proposal?
No official timeline or legislative vehicle has been announced. The proposal aligns with PAGCOR’s broader modernization agenda, but implementation would require coordination across multiple government agencies and could face resistance from operators currently benefiting from lower-tax arrangements.
