After reading, Disposition of Revenues from Gaming Tax on Offshore Gaming Licensees, read also Gaming Tax On Services Rendered By Offshore Gaming Licensee
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The State reiterates the recognition of legal forms of gambling including offshore online gaming
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A gaming tax shall be collected from offshore gaming licensees
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A portion of the gaming tax collected from offshore gaming licensees shall be for the implementation of the Universal Health Care Act
Among the policies of the State is 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. The State strictly regulates all forms of legal gambling and prohibit all forms of illegal gambling.
Also, the State recognizes that revenues generated from legal gambling are not a sustainable source of income. It further recognizes that all forms of gambling have consequences to Philippine society in general, and to Filipino families in particular. While the State allows offshore online gaming, the same shall not be construed as a favorable state endorsement of such activity.
In our previous article, we mentioned that offshore gaming licensee refers to offshore gaming operator, whether organized abroad or in the Philippines, duly licensed and authorized, through a gaming license, by the Philippine Amusement and Gaming Corporation or any special economic zone authority or tourism zone authority or freeport authority to conduct offshore gaming operations, including the acceptance of bets from offshore customers, as provided for in their respective charters.
Note that there is a corresponding gaming tax being collected by the government from the offshore gaming licensees. How does the government dispose the revenues from gaming tax on offshore gaming licensees?
The law says:
The provisions of existing law to the contrary, notwithstanding, sixty percent (60%) of the total revenue collected from the gaming tax imposed on offshore gaming licensees shall be collected from gaming tax imposed on offshore gaming licensees shall be allocated and used exclusively in the following manner:
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Sixty percent (60%) for the implementation of Republic Act No. 11223, otherwise known as the ‘Universal Health Care Act’;
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Twenty percent (20%) shall be allocated to Health Facilities Enhancement Program (HFEP), the annual requirements of which shall be determined by the Department of Health; and
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Twenty percent (20%) shall be allocated for the attainment of Sustainable Development Goals (SDGs) provided that the specific SDG targets shall be determined by the National Economic Development Authority.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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