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    Are taxes on gaming progressive? an analysis of the incidence of taxes on gaming activities
    (2014-04) Bravo, Karen Andrea V.; Pascua, Patricia Beatrice R.; Solon, Orville Jose C.
    Gambling activities are deemed to be voluntary thus imposing taxes raises the questions of equity and efficiency. This study aims to determine how progressive or regressive taxes on gambling are in the Philippines. This will be done by estimating a model of who gambles, and how net winnings differ across different income brackets. Using the Heckman Regression Model, we find that, with the availability and proximity of gambling activities in the Philippines, taxes on any gambling activities burden the bottom 30-percent of income strata.
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    Gambling participation among Filipino households
    (2012-10) Balane, Fritz Jenald Alagon; Gloria, Enrico de Dios
    Governments and Illegal Organizations in the Philippines increasingly rely on gambling revenues, which increases the significance in understanding gambling participation and intensity of gambling. Despite the proliferation of gambling activities, wether legal or illegal, here in the Philippines, its consumers are still limited . Hence in a survey conducted by the National Statistics Office in 2010, a large number of zeros was observed which creates methodological problem for econometric analysis. The Heckman model as a two-stage estimator was used to statistically analyze participation in gambling. Results showed that certain variables such as alcohol and tobacco consumption, household gender, . household head employment, and family dacites are significant factors in determining gambling participation and its extent in various income groups.
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    Betting on jueteng: an empirical study on the gambling behavior of people who engage in jueteng
    (2001-10) Locsin, Cathleen Grace C.; Tolentino, Aimee Ivee M.; Tan, Edita
    The risk-taking behavior of individuals who engage in gambling is influenced by a lot of factors. The attempt to explain such behavior is embodied in this empirical study on people who engage in a gamble called jueteng. Jueteng, which appears to be the most popular form of gambling in the Philippines, is a sequential 2 numbers game that involves a combination of 37 numbers against 37 numbers thus totaling 1,369 combinations. In some areas, minimum bets per combination are 25 centavos and maximum bets as high as 100 per combination. In this study, the researchers aim to find how the amount of bet varies across economic and socio-demographic factors such as, income, age, size of household, and gender. The analytical framework used was based on John Conlisk' s and Reuven Brenner's models, which try to explain gambling behavior, using the principles of utility theory. Using this framework, it was predicted that: (1) the relatively poor would spend more on gambling than the relatively rich; (2) older people would gamble more than their younger counterparts; (3) those who belong to a larger household would gamble more; and ( 4) women would gamble more in a game of luck, like jueteng, than men would. Accordingly, the researchers predicted that the amount bet on jueteng would be decreasing with the level of income, increasing with age and size of household, and that women would gamble more in jueteng than men. The study focused on the residents of Barangay 8-3 Payapa, Mendez, Cavite, who engage in jueteng. Samples were chosen using systematic· sampling and data was gathered using . survey facilitated by questionnaires. Regression analysis revealed that income and age were the only significant variables affecting the amount of bet.
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    Sources and uses of gaming revenues
    (2004-04-12) Bunanig, Kathryn Joy I.; Santos, Cherry Mylee N.; Diokno, Benjamin
    The Philippines has two major gaming corporations, the Philippine Amusement and Gaming Corporation or P AGCOR, and the Philippine Charity Sweepstakes Office or PCSO. They gain revenues from gaming operations such as casinos, and sweepstakes and lotto, respectively. The revenues are allocated to the different sectors of the country. PAGCOR's revenues mainly come from casino operations and take a big bulk since it captures foreigners as its market. As a result, the Philippine gaming industry has a strong potential to become Asia's gaming center. The revenues gained by PAGCOR has been increasing over time. Another reason for the corporation to become a big competitor for other gaming industries all over Asia. Its revenues are allocated according to the following: 5% to the BIR as franchise tax, 50 percent to the National Treasury as the National Government's mandated income share, 5 percent to the Philippine Sports Commission for financing of the country's sports development program, 1 percent of the net cash income goes to the Board of Claims, a fixed amount to cities hosting PAGCOR casinos, and the balance to the President's Social Fund. On the other hand, PCSO earns its revenues from the operation of sweepstakes and lotto. It acquires bigger sales from sweepstakes since the latter started only in 1995. However, sales over time for both games are increasing. Revenues are allocated as follows: 55% for the prize fund, 30% as contributions for the charity fund, 15% for the operating expenses and capital expenditures of the Office, and lastly, all balances shall revert to and form part of the Charity Fund, and shall be subject to disposition.
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    Targeting the gamblers: a tool for public policy decision-making
    (2004-03) Hernandez, Wincel P.; Lee, Nikki Rose M.; Quimbo, Stella A.
    The goal of this study is to identify the socio-demographic characteristics of gamblers and evaluate the effectiveness of targeting tools for public policy targeting purposes. Maximum Likelihood estimation methods were used to estimate four logit models of gambling participation among Filipinos. The forms of gambling were subdivided into legal and illegal in order to establish the distinction between the characteristics of legal and illegal gamblers. The legal forms include Lotto, Casino, Bingo, Cockfighting, Sweepstakes, and Racing. The illegal forms include Casino Internet, Jaialai, Jueteng, Mahjong, Card Games, Masiao, Sakla, Ending in Basketball, Billiards, Two-Digit and Two-Ball Bingo. Individual characteristics such as age, gender, educational attainment, language, marital status, employment status and work sector were used. In addition, the relationship of geography (locale, area, province), institution (religion), media access (radio, TV, newspaper) and income towards gambling were tested. The General Gambling Model reflects the results of the Illegal Gambling Model, with minimal variations from the Legal Gambling Model. From these, it has been found that individuals from the younger age groups are more likely to participate in gambling. Males, as well as the less educated, reveal positive relationships with gambling. Urbanity, employment sector as well as Catholicism play a major role in the determination of gambling participation. These gamblers have access to the radio, and television stations, particularly ABS-CBN and GMA, and the tabloid Tempo. Income is inversely related to gambling, most especially in illegal forms but directly related to gambling participation in legal forms. Lastly, the capacity for correct prediction of each targeting tool was evaluated. Provincial targeting (Geographic 2) is the most effective targeting tool for illegal gambling since it has the largest percentage of correctly predicted cases and it appears to be cost-efficient as well. In this line, if the government aims to pursue proposed legalization or prohibition of illegal gambling activities, or chooses to target those who participate in illegal forms of gambling, information are already presented in this paper. It is recommended that further studies should consider evaluating the efficiency of targeting tools based on undercoverage and leakage rates. Information on the frequency and duration of gambling participation as well as the amount of bet wagered in gambling may also be taken into consideration.
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    The effects of lotto on the fiscal performance of selected cities in the Philippines
    (1999-10) Llanto, Marinella Gilda N.; Guzman, Marsha Leia J.; Miranda, Casimiro V.
    Lotto, like any gambling pursuit, has been frowned upon by society in general. The Catholic Church has been especially adamant of its operations because of ethical and social considerations. The government, however, upholds the legal operation of lotto with the belief that revenues generated from it would subsequently finance pro-poor projects. Putting moral judgement aside, the paper delves into the economic impact of lotto on the fiscal performance of selected cities in the Philippines. The main objective of the paper is to evaluate whether revenues generated from lotto tend to substitute for local revenue effort. Revenue effort, measured as the ratio of actual revenue to GDP, provides the basis of the evaluation. Using the city as the unit of analysis, revenue effort was then regressed on revenues from lotto and on other variables namely, internal revenue allotment, grants, population density and classification of cities. The paper hopes to inform the debate on whether or not it is a good public policy to encourage lotto.
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    The economic cost of morality: a jueteng case: how does legalized jueteng impact the society?
    (2009-10) Regala, Eunice Loi M.; Torrenueva, Jay C.
    The operative word in describing jueteng in the Philippine Society is impunity - Everyone knows it, but no one is caught. Jueteng has been widely perceived as deeply rooted in the Filipino Culture. In fact, jueteng-related activities start from the ordinary market vendor and may end up to the president of the Philippines. Yet the numbers game of the "masses" remains to be illegal. Numerous legislators attempted to legalize the game but to no avail. So to end this much-heated debate, the topic must be tackled objectively. Hence, we ask the question, "How does legalized jueteng impact the society?" An earlier study provides a monetary cost-benefit analysis if jueteng is legalized. Based from the lndon Study, the legalization option is the optimal solution. However, monetary benefits do not embody the whole economic cost of legalization. For this reason, the researchers looked at the benefits and costs in the following sectors: individual, enterprise, government, and society. This is done to further analyze the socioeconomic impacts and economic implications of legalization. This study aims to determine why jueteng, although a popular game of the masses, remains an illegal form of gambling. The study discusses the socioeconomic benefits and costs of legalized jueteng, focusing on the role of morality and social cost - if earlier findings can be applied in the Philippine context - and if its impact is greater than the benefits of legalized jueteng so as to fight off the game's legalization. Morality degradation is the strongest argument against legalization. Nevertheless, based on the researchers' analysis, even though morality is marginally degraded in legalized jueteng, the corruption resulting from illegal gambling is greatly reduced. This reduction in corruption may offset the effects of morality degradation. Therefore, legalization of jueteng, setting the monetary benefits aside, truly does make economic sense.
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    The impact of wealth expectations on the incidence of lottery gambling
    (2010-03) Azis, Jauhari C.; Fulgar, John Raphael D.
    Gambling is especially problematic in third-world countries such as the Philippines because of one thing: it is not self-limiting. Logically, when disposable income runs out, the betting stops. However, in the Philippines, people go so far as to plunge themselves into debt to continue gambling. Much-needed savings are diverted to such risky activities instead of productive investments. This is a pervasive problem in a country where more than half the population suffers from poverty. Despite the deep-seated and long-running culture that propagates this problem, no major research has been done on the motivations behind these irrational economic decisions. Relevant entities instead rely on classic studies that tie gambling to common identifiers such as lack of education and job opportunities. However, as this study sets out to prove, this is no longer sufficient in explaining gambling behavior. Using recent national-level data from the Social Weather Stations, the authors ran a logistical regression that determined the variables that affected the odds of participating in lotteries. The model was able to produce results that contradict previous studies or popular expectations, such as the fact that higher levels of education actually increase the odds of gambling. Other important results point to a different way of thinking about gambling behavior, such as the fact that purchasing power is not significant in influencing the decision to gamble, but how the individual perceives his quality of life in relation to the past is. The results imply that individual wealth expectations and the factors that can distort these are the primary motivators in deciding to gamble. This study concludes with a set of recommendations for policy makers that target these factors. Some of these recommendations include providing income safety nets, addressing unemployment issues especially for fresh graduates, improving income equity, investing in human development and implementing programs that make investing in productive ventures like businesses more attractive.