For fear that its physical operations may become a casualty of the ongoing clamor to limit online gambling, publicly-listed DFNN, Inc., the parent of licensed gaming technology provider IEST, Inc., warns that proposed restrictions may drive low-income players to illegal or offshore operators.

“We acknowledge and respect the intent behind the bill recently filed by Senator Sherwin Gatchalian, which proposes to further refine the regulatory environment for online gambling platforms in the Philippines,” the firm said in a disclosure to the Philippine Stock Exchange.

It noted that, “These proposed changes aim to enhance consumer protection and mitigate propagating problematic gambling habits, objectives which DFNN fully supports.”

However, DFNN said it is equally important to consider the operational diversity across the holistic gaming ecosystem. In particular, the distinction is between primarily digital platforms and legacy land-based establishments that predate the introduction of the legal online framework.

“Our gaming network, composed of licensed, physical outlets nationwide, operates under close regulatory supervision and adheres to strict compliance standards, including but not limited to robust face-to-face KYC (know your client) protocols, national ID-grade facial recognition, and enforcement of the minimum legal age of 21 as set by PAGCOR,” the company said.

It added that, “These community-based outlets provide secure, supervised environments for responsible gaming, and continue to generate meaningful economic benefits such as job creation, local business partnerships, and direct fiscal contributions to their host communities.”

As regulatory reforms are considered, the company noted that “we respectfully emphasize the importance of proportionality and precision in their application.”

“Well-intended restrictions, if not carefully calibrated across distinct gaming formats, may unintentionally create incentives for certain segments of the population, particularly casual or lower-income players, to seek alternatives from unlicensed or offshore platforms,” the firm said.

DFNN pointed out that “These grey market operations, which often exist beyond regulatory reach and with non-existent player safeguards, could undermine the very protections that the legislation seeks to reinforce.”

Thus, it calls on legislators and regulators to “strike the right balance: one that strengthens accountability and social safeguards while preserving the viability of well-regulated, locally embedded operators that contribute positively to the national economy.”