The Bureau of Internal Revenue (BIR) has pivoted from taxing to dismantling the country’s offshore gaming industry, formalizing the enforcement phase of the total ban signed into law by President Marcos four months ago.

Under the latest revenue memorandum circular published last Friday, the country’s main tax collection arm has banned and declared illegal all offshore gaming operations in the country, alongside other activities linked to offshore gaming. This enforces Republic Act No. 12312.

It simultaneously repeals Republic Act No. 11590, an old tax law that allowed the BIR to tax and regulate Philippine offshore gaming operations (POGOs).

BIR Commissioner Charlito Martin Mendoza has urged all revenue officers to intensify the campaign and raise public awareness of POGOs’ illegal status. This is expected to ensure high compliance with the ban.

“All internal revenue officials and employees are hereby enjoined to give this Circular as wide a publicity as possible,” Mendoza said.

To recall, President Marcos signed the law banning POGOs in October last year. Gaming firms concerned were given a third of a year to wind down operations before the BIR officially kicked off the enforcement of the ban.

While this policy shift could temporarily dent the government’s tax revenues, raising the bar for measures of this kind could invite investments far exceeding the lost revenues, according to Michael Ricafort, chief economist at Rizal Commercial Banking Corp.

Prior to his nod, Ricafort noted that the BIR’s enforcement could result in lost potential tax revenues from businesses linked to gaming companies receiving tax perks, on top of the foregone revenues from the main investors themselves.

“Improved government standards related to these moves would help attract other investments into the country,” Ricafort said. “These would more than help make up for the exit of POGOs and also more than help make up for any foregone tax revenue collections in a more sustainable manner over the long term.”

Last year, the BIR collected ₱3.11 trillion, modestly exceeding the downscaled target of ₱3.10 trillion. It bore the brunt of the two-month suspension of tax audits.

For 2026, 2027, and 2028, the BIR is expected to collect ₱3.58 trillion, ₱3.98 trillion, and ₱4.42 trillion, respectively.

As of the third quarter of 2025, the Philippine gaming industry showed signs of strain, with gross gaming revenue (GGR) clocking in at ₱94.5 billion, down from ₱94.6 billion in the same period in 2024.

Recall that the online gaming sector led the local gaming industry’s 17.4-percent annual expansion, reaching ₱42 billion in revenues. However, the broader market cooled slightly due to tighter digital payment regulations.

A strong performance in July was offset by a slump in August and September following the mandatory delinking of e-gaming platforms from e-wallets, including the giants GCash and Maya.