E-Wallet Crackdown: A Blow to Online Gambling?

Photo courtesy of PhilStar

In the wake of a directive by the Bangko Sentral ng Pilipinas (BSP), the online gambling scene in the Philippines is feeling the pressure. The central bank recently ordered e-wallet platforms to remove links to gambling sites, resulting in a reported 50% drop in online gaming transactions between 17 and 19 August.

Philippine Amusement and Gaming Corporation (PAGCOR) Chair, Alejandro Tengco, confirmed the decline during a recent briefing. He stated that the regulator had been working closely with the central bank to strengthen digital payment regulations. By 17 August, platforms like GCash and Maya had complied by removing in-app gambling links.

Despite this, the BSP's ruling doesn't require gambling sites to remove links to e-wallets, allowing users to continue depositing funds indirectly. This partial measure seems to have unintentionally pushed some players toward riskier, unregulated platforms.

Tengco highlighted a pressing issue: while the regulated sector shrinks, unlicensed foreign operators continue to thrive. About 60% of online gambling operators in the country operate without licenses, leaving PAGCOR powerless to penalise them. Instead, they report these operators to law enforcement, having already taken down over 8,000 illegal sites in conjunction with the Cybercrime Investigation and Coordinating Center.

However, many operators restart under new guises, exploiting 'mule merchant' accounts to disguise gambling as legitimate transactions. This tactic allows them to operate undetected, offering gambling services to underage users.

Tengco argued against a complete ban on online gambling, stressing the importance of targeting illegal operators instead. He urged Congress to enhance PAGCOR's regulatory powers to tackle the root of illegal gambling effectively.

His concerns are backed by a recent survey from The Fourth Wall, showing that while legitimate gambling participation fell by 70% post-restriction, unregulated sites saw a 40% increase in users. This trend underscores the need for comprehensive measures addressing illegal platforms and public perception of safety regarding e-wallets.

PAGCOR reported earning approximately 52 billion Thai Baht (P114.83 billion) in gross revenue from online gaming during the first half of 2025, providing substantial funds for governmental social services. However, some lawmakers argue that such economic benefits do not compensate for the social implications of gambling.

The move by the BSP appears to be a double-edged sword. While aiming to curtail online gambling, the deployment of e-wallet restrictions may inadvertently drive players to more dangerous environments. Stakeholders now face the challenge of balancing regulatory measures with the mitigating impact on illegal operators, ensuring that the solution doesn’t become part of the problem.

  Adapted by ASEAN Now from PhilStar 2025-08-20