Bangko Sentral ng Pilipinas (BSP), the Philippine central bank, announced Thursday it is finalizing new regulations that will require banks, e-wallets, and other financial service providers to implement stronger safeguards against gambling-related harm.
The central bank said the upcoming measures aim to reduce the risks of addiction, fraud, and financial harm while promoting the responsible use of digital financial services. The rules were developed following public consultation as concerns mount over the social impact of online gambling in the Philippines.
Under the new framework, financial service providers must implement strict identity verification processes, including biometric checks such as facial recognition, to ensure only eligible individuals can use their funds for online gambling. The regulations will also establish daily limits on gambling-related transfers to prevent excessive financial losses.
Additional protective measures include time-based restrictions on gambling payments designed to curb impulsive behavior. Users will gain access to tools allowing them to set personal spending caps, take voluntary breaks, or completely self-exclude from gambling transactions.
The BSP’s move comes amid growing government concern over online gambling’s societal effects. President Ferdinand Marcos Jr. and several lawmakers have raised issues about addiction, family problems, and financial hardship linked to online gambling activities.
The statement didn’t detailed whether the daily limit will be the equal among banks, e-wallets, and other financial service providers, or if they can define the limit themselves. However, in a recent interview with AGB, Juan Paolo Colet, Managing Director at Chinabank Capital, stressed the importance of ensuring that any new controls are practical and easy to implement. He highlighted two key priorities: implementing effective age verification to prevent access by minors and setting reasonable daily spending caps to address social and behavioral risks associated with online gambling.
The BSP’s draft circular, released in mid-July, will apply to payment service providers (PSPs) and payment system operators (OPSs) involved in online gambling. These entities must get BSP approval, hold at least PHP300 million ($5.3 million) in capital, and meet key compliance standards.
To prevent fraud and illegal activity, they must have strong anti-money laundering and counter-terrorism financing measures (AML/CTF), with board-level oversight. Online gambling operators will be treated as high-risk merchants, requiring stricter checks, including verifying beneficial ownership and conducting ongoing risk assessments.
The regulatory response reflects a broader debate within the Philippine government about the industry’s future. While some senators advocate for a complete ban to protect minors and families, other officials and industry groups warn that such action could result in significant job losses, weakened consumer protections, and reduced government revenue.
The BSP emphasized its commitment to maintaining a safe, secure, and inclusive digital finance ecosystem for all Filipinos. The central bank stated that these safeguards represent a balanced approach to addressing gambling-related risks while preserving access to digital financial services.
