The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, has ordered all electronic wallets to disconnect from online gambling sites within 48 hours, a move that has drawn sharp criticism from senators who demand immediate action rather than a grace period.
BSP Deputy Governor Mamerto Tangonan announced the directive during a Senate committee hearing on games and amusement on Thursday, according to Inquirer.Net. The order specifically targets in-app features and links that allow users to access electronic gambling sites directly through wallet platforms.
The central bank’s ultimatum comes amid growing concerns over illegal online gambling operations in the Philippines, with data presented during the hearing revealing 11,985 illegal online gambling sites operating in the country. Of these, 6,363 are online casino games, 235 are offshore sites, and 4,815 are online sabong or cockfighting platforms.
Senate opposition to 48-hour timeline
Several senators expressed frustration with the BSP’s two-day implementation period, questioning why immediate disconnection was not possible.
Senator Alan Peter Cayetano challenged the timeline during the hearing, questioning why the disconnection required 48 hours when it could be implemented instantly. He criticized the extended timeframe as potentially allowing two additional days of gambling activity.
Cybercrime Investigation and Coordinating Center Undersecretary Renato Paraiso confirmed that the technical disconnection could be implemented immediately, contradicting the BSP’s justification for the extended timeframe.
Committee chair Senator Erwin Tulfo delivered a stern warning to Tangonan, demanding that all gambling links be removed from e-wallet platforms by Sunday morning or face contempt charges. Tulfo emphasized the severity of the situation, describing it as a crisis that required immediate action.
Tangonan agreed to face contempt charges if e-wallet links to gambling sites were not removed by the end of Saturday.
Central bank defends implementation period
Despite the criticism, Tangonan defended the 48-hour window, explaining that the BSP wanted to provide adequate time for e-wallet operators to prepare their systems and inform users about the changes.
However, Senate Majority Leader Joel Villanueva rejected this justification, expressing his objection to the central bank’s claim that 48 hours were needed when technical officials confirmed immediate implementation was possible.
Villanueva emphasized the urgency of the situation, highlighting the need to protect the public and referencing the tragic deaths of individuals who have committed suicide after losing money to online gambling.
Industry group advocates for regulated approach
While the BSP moves forward with disconnection orders, the PlaySafe Alliance PH, representing 20 government-licensed online gaming operators, has proposed an alternative approach. The group argues that mobile wallets should be retained as enforcement tools rather than completely disconnected from gambling-related transactions.
Mike Defensor, spokesman for the alliance, emphasized that regulated electronic money issuers provide crucial Know Your Client (KYC) data and transaction trails that enable authorities to trace money flows and build cases against illegal operators.
The group warned that complete disconnection could drive operators and bettors toward cash couriers or alternative digital payment channels that are more difficult for regulators to monitor.
Broader regulatory context
The controversy occurs as the Philippine online gambling sector faces increased scrutiny from lawmakers and regulators. Several legislators have called for either complete bans or stricter regulation of online gambling, citing its negative impact on Filipino citizens who have developed gambling addictions.
The BSP has also proposed a circular seeking to regulate online gambling payment services, which includes stronger identity verification requirements, daily transaction limits, and mandatory monitoring for gambling-related activity.
The PlaySafe Alliance has expressed support for these proposed regulations while advocating for clear protocols governing when and how account freezes are applied, including oversight mechanisms and data privacy safeguards.
