Philippines-based online gambling operators are facing stiff new tax hikes as the government looks for cash to fund its economic recovery from the COVID-19 pandemic.

On Saturday, Philippine Senate Minority Leader Franklin Drilon announced that the newly signed Bayanihan to Recover as One (Bayanihan 2) law will more than double its financial collection from Philippine Offshore Gaming Operators (POGOs) by imposing a tax on online gambling turnover rather than revenue.

The law states that POGOs will now be subject to a “five percent (5%) franchise tax on the gross bets or turnovers or the agreed pre-determined minimum monthly revenues from gaming operations, whichever is higher, earned by offshore gaming licensees, including gaming operators, gaming agent, service providers and gaming support providers.”

To ensure operators can’t use foreign currency fluctuations to diminish their tax obligations, the franchise tax “shall be computed on the peso equivalent of the foreign currency used, based on the prevailing official exchange rate at the time of payment, otherwise the same shall be considered as a fraudulent act constituting under-declaration of taxable receipts or income.”