Payment service providers in the Philippines could have their licenses revoked if they repeatedly fail to stop illegal online casinos from using their platforms, after authorities found gambling businesses posing as beauty salons, bakeries and other ordinary merchants.
The Bangko Sentral ng Pilipinas (BSP) uncovered the activity while reviewing payment patterns involving thousands of transactions worth as little as PHP50 ($0.80), Bloomberg reported, citing an interview with BSP Deputy Governor Mamerto Tangonan.
Many of the payments were made after midnight or during the early morning through merchants that appeared unremarkable on paper. Authorities later determined that the transactions were bets placed with online casinos.
Accounts associated with more than 8,000 merchants have since been closed for alleged illegal activities, according to the report. Small local retailers were also among the businesses whose identities were reportedly used to receive payments.
The BSP has released a draft measure placing greater responsibility on payment service providers to screen the merchants they accept. Providers would be required to collect more information, including ownership details and business licenses, and maintain databases of legitimate merchants.
The review also targets the use of merchant aggregators, which act as intermediaries between payment providers and large numbers of smaller businesses. While the model has helped expand digital payments, it can make it harder to identify the ultimate recipient of a transaction.
“If there are illegal activities and you’re not able to stop it, then you are accountable,” Tangonan told Bloomberg.
Philippine Amusement and Gaming Corporation (PAGCOR) Chairman Alejandro Tengco said the regulator was aware that some seemingly legitimate businesses were operating as unregistered online casinos and was working with the BSP.
Digital payments accounted for about two-thirds of Philippine retail transactions in 2025, up from 57 percent in 2024 and 10 percent in 2018.
