Financial Institutions Directed to Disconnect App Integrations with Internet Gambling Platforms by the BSP
Stricter Online Gambling Payment Policies Introduced in the Philippines
The Bangko Sentral ng Pilipinas (BSP), the country's central bank, has announced new regulations for digital payment services linked to online gambling platforms in an effort to combat illegal gambling activities and money laundering risks.
The BSP has directed e-payment providers, including popular e-wallets like GCash and PayMaya, to delink or cut direct payment connections to online casinos. This move aims to reduce illegal gambling and enhance financial security, leading to the removal of in-app icons and direct access points for gambling within popular digital wallets.
Online gambling in the Philippines is legal but regulated mainly through PAGCOR, which issues licenses that generally prohibit Filipino residents from playing in domestic online casinos but allows offshore licensed operators to serve foreign players. Filipino players currently use a variety of payment methods at online casinos, including e-wallets, credit/debit cards, bank transfers, and cryptocurrencies.
The BSP's regulatory move is significant as e-wallets were popular due to instant or same-day processing, free fees, and ease of use for online casino deposits and withdrawals. This change may push players to alternative payment methods or more controlled channels.
PAGCOR continues to regulate and license operators with a focus on offshore internet gambling licensing frameworks introduced in 2023 to protect Filipino players and combat illegal offshore platforms.
A Senate hearing is being held on the future of online gambling in the Philippines, with the Senate reviewing multiple bills. Three of these bills call for a complete ban, while two propose tougher regulations. The BSP has hinted at tightening its rules on online gaming.
The new regulations include time-based restrictions on payment activity, user-controlled tools for spending caps, voluntary breaks, or self-exclusion, strict identity verification for gambling-related payments, and daily transaction limits for gambling transfers. The suspension of in-app access to gambling platforms will last until the BSP finalizes its online gambling payment policy.
Senator Erwin Tulfo, chair of the Senate Committee on Games and Amusement, stated that the Philippines will not be a playground for gambling syndicates. Alejandro Tengco, chairman and CEO of Philippine Amusement and Gaming Corporation (Pagcor), was present at the hearing.
The BSP's concerns include a spike in online gambling transactions and their impact on household finances and wider social costs. The new regulations are part of the BSP's preparation for new regulations for online gambling, following public consultation. The BSP is working towards a safer and more secure online gambling environment in the Philippines.
The new regulations by the BSP, aimed at combating illegal activities and money laundering risks, involve the delinking of digital payment services from online gambling platforms. This move may encourage users to explore alternative payment methods for online gambling.
The BSP's focus on technology, such as time-based restrictions, user-controlled tools for spending caps, and strict identity verification for gambling-related payments, is part of their preparation for a safer and more secure online gambling environment in the Philippines.
