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In an apparent global first, the Philippine government is considering compulsory stock market listings for online gambling companies to compel greater transparency in operations and ownership.

Forcing domestic-facing online gambling companies to list on the Philippine Stock Exchange (PSE) and paying 10 percent more in tax are two of a number of tough reforms on the table for the online gambling sector, Finance Secretary Ralph Recto told Philippine media on Thursday (July 17).

Recto said the executive branch is “looking at” imposing listing requirements to force corporate disclosures from companies long reluctant to open their books to government and public scrutiny.

“We can force them to list so that we know who the people behind it are,” Recto said. “It becomes more transparent.”

A mandatory listing for online gambling companies regardless of size would skew the market in favour of larger operators and put formidable pressure on smaller companies to redirect resources to compliance issues, potentially triggering a new migration of online gambling companies away from the Philippines. It would also resemble and complement an initiative by the Philippine central bank to slap much tighter controls and transparency on the all-important payments sector, a crucial conduit for Philippine online gambling companies legal and illegal alike.

At the same time, the central bank and finance ministry moves to tighten online gambling oversight send a message that the government backs the future of the industry against lawmakers and others who want severe curtailments or a ban on the industry in its entirety.

Recto said as much on Thursday, suggesting stock exchange scrutiny, a new tax and other unannounced measures will help to legitimise licensees and weed out illegal operators that control 60 percent of a market ranking in the top ten globally.

“I don’t think [domestic online gambling] should be banned. I think more regulation and higher taxes are enough,” he said.

“Hopefully, with that the number of people playing will decrease.”

Recto added that Philippine President Ferdinand Marcos Jr is likely to unveil a detailed plan for the sector in his state of the nation address to Congress on July 28.

However, the increase in tax for online gambling companies threatens to cancel out or diminish a sequence of tax incentives delivered by gambling regulator PAGCOR to its stable of online gambling licensees in recent years.

PAGCOR’s cuts aimed to increase the appeal of the regulated market to a slew of illegal operators, and lessen the complex tax burden endured by compliant operators. The cuts have been championed by the regulator’s chairman and CEO, Alejandro Tengco, at every public opportunity.

Still, the most prominent players in the regulated market appear to be on board with the government as hostile lawmakers attempt to relive the termination of the foreign-facing online gambling market and draw a critical mass of support for rival bills attacking the domestic-facing industry.

Online gambling heavyweight DigiPlus Interactive Corp, a successor company to industry pioneer Leisure and Resorts World Corp, said on Wednesday that it strongly supports “smart, balanced regulation that protects players, ensures industry accountability and sustains the economic value generated by the legal online gaming sector”.

In a detailed statement on its current and future responsible gambling platform and compliance methodology, the operator of prominent gambling websites such as BingoPlus and ArenaPlus said it “fully supports updated legislation, particularly around stronger penalties for illegal operators, and clearer advertising standards”.

“With the right rules in place, the Philippines can be a model for safe, transparent online gaming in Asia,” company chairman Eusebio Tanco said.

“We are ready to work hand-in-hand with regulators, legislators and community groups to make that vision real.”

Meanwhile, Clark Freeport’s leading land-based casino operator Hann Casino Resort, which also offers online gambling products, has announced it will list on the PSE on September 23 after the Philippine Securities and Exchange Commission approved its registration statement for an 11.43bn peso ($200m) initial public offering.