On August 7, the Central Bank of the Philippines (BSP) announced that it will initiate a series of new regulatory measures targeting online gambling transactions, aimed at strengthening financial institutions' control over the flow of gambling funds. These new regulations require banks, electronic wallets, and other financial service providers to implement stricter scrutiny mechanisms to curb gambling addiction, fraud, and systemic risks brought by offshore gambling (POGO).
The core regulatory schemes proposed by BSP include:
Introducing biometric technologies such as facial recognition to ensure that only real users carry out gambling-related transactions;
Setting daily transaction limits to restrict users from transferring large amounts to gambling platforms, reducing financial loss risks;
Limiting transaction hours to control late-night or impulsive gambling behaviors;
Implementing a "responsible gambling" mechanism, including features that allow users to set spending limits, temporarily block accounts, and self-exclusion options.
The central bank stated that these measures aim to create a safer, more prudent digital financial environment while responding to public concerns about the spread of online gambling issues. Although the new regulations have not yet been officially implemented, BSP revealed that the formulation process extensively solicited social opinions, particularly focusing on the security and social issues triggered by the POGO industry.
Meanwhile, the Philippine Department of Health has classified online gambling as a public health crisis, and President Marcos has publicly stated that he will "seriously consider" a complete ban on the industry. Several legislators have called for enhanced regulation, pointing out that the proliferation of online gambling advertisements and e-commerce wallets facilitating addiction have caused public dissatisfaction. However, there are concerns that a blanket ban might drive online gambling underground, potentially exacerbating black market risks.
It is worth mentioning that BSP had previously proposed that banks set up separate accounts for gambling transactions and conduct high-standard reviews. Although it is not clear whether this suggestion will be retained, as policies tighten, the funding channels for POGO and gambling platforms will face more severe challenges, quietly unfolding a game of "control and survival."
