July 18, 2025 l Manila Times
In the past month, I have observed two seemingly unrelated developments in the country.
First is the news that the national debt-to-income levels have almost doubled in the past three years; and second, that online gambling has increased.
It is no coincidence that these two issues are rising at the same time. The circumstances have been brewing since the pandemic lockdowns.
This is a result of many factors, some of them quite remarkable from a financial market access standpoint, which have contributed to this unfortunate convergence of events.
A recent report from Singapore-based fintech firm Roshi Pte. Ltd indicated that credit card debt in the Philippines has reached a “critical” risk level. Salary-based loans have also expanded, contributing to the growth of consumer debt in the country.
The surge is partly due to wider access to credit and a shift towards borrowing cash for everyday purposes.
This can also be traced to the growth of virtual wallets during the pandemic. The report indicated a potential financial strain on households. It said that the 425-percent debt-to-income ratio in the Philippines is the worst in Asia.
Elsewhere, Indonesia showed the lowest ratio at just 21 percent debt-to-income ratio. The nearest country comparison is Vietnam with a 127-percent ratio.
A recent economic update from Metrobank validated this growing trend, which showed that the average debt-to-income ratio has increased by 80 percent over the past three years, rising from P191,000 to P 345,000 per capita.
Boom-and-doom dilemma
A report from the Straits Times of Singapore, which was also covered by our local media outlets, said the Philippines is grappling with an online gambling boom-and-doom dilemma. It said that Filipino families are increasingly affected by online gambling, with easy access leading to addiction and financial problems.
The challenge is, government revenues from e-games are big. This leaves lawmakers divided between banning or simply regulating online gambling.
The Philippine Amusement and Gaming Corp. (Pagcor) is responding by removing ads and tightening rules while fintech firms enhance verification.
Malacañang is also considering taxing online gambling. More than 80 gaming platforms are legally registered with Pagcor. Gross revenues from e-games hit P51.39 billion from January to May. This is what the government earned after paying out winnings.
In 2024, the same platforms generated P54.51 billion worth of government revenues.
While there is no official data on how many Filipinos are addicted to online gambling, frontline agencies are reporting that the red flags are multiplying.
According Bridges of Hope, a network of 13 rehabilitation centers across the country, they are already seeing that seven out of 10 monthly admissions are hooked on gambling. This is just one network, and one can only imagine how many more are not seeking professional help.
The rise of online gambling in the country represents a growing threat to personal finances, mental health, and the economic stability of households.
Coupled with increasing debt levels, the country faces a potentially dangerous convergence of addiction and vulnerability.
The government must act quickly to enforce stricter regulations, improve financial literacy and provide support for those affected.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email rsgoseco@gmail.com. Photo is from Pinterest.