The Department of Social Welfare and Development (DSWD) of the Philippines has issued a departmental memorandum explicitly prohibiting the use of government cash assistance for any form of gambling. Minister Rex Gatchalian emphasized in a public statement that the core goal of cash assistance is to help impoverished families through tough times, not to serve as gambling chips.
He noted that if a beneficiary is found using funds for gambling, their eligibility will be immediately revoked, and the related family may also be permanently removed from the assistance program list. Local project implementers are required to establish post-event monitoring and complaint handling mechanisms to ensure that the assistance funds are truly used for basic living needs such as medical care, education, food, and housing.
Currently, DSWD manages various assistance projects, including the AICS Individual Assistance Program for emergency situations, a one-time maximum subsidy of 10,000 pesos for low-income groups, and the 4P covering farmers, fishermen, pregnant women, and minors. In addition, special subsidies are provided for the elderly, disabled, single-parent families, and the unemployed. Gatchalian reiterated, "Any misuse of funds will undermine the fairness and effectiveness of social assistance."
Central Bank's "Cut Wallet" Measures: Legal Gambling Halved, Black Market Surges
Almost simultaneously with the issuance of the DSWD's anti-gambling order, the Central Bank of the Philippines (BSP) also took tough measures, requiring mainstream electronic wallet platforms such as GCash and Maya to sever payment connections with gambling websites, aiming to curb public addiction. However, the outcome of the policy was unexpected.
Alejandro Tengco, chairman of PAGCOR, revealed that since the implementation of this measure, the transaction volume of legal gambling websites has been halved, dropping by more than 50%. At the same time, black market gambling platforms took the opportunity to expand, attracting players with gimmicks such as "minimum bets of one cent" and "higher odds and bonuses."
Currently, there are about 12,000 active illegal gambling websites in the Philippines, far exceeding the mere 77 legal licensed operators. Despite the government's joint efforts with the ICT department, CICC, and the police to shut down 8,000 illegal sites, the black market platforms quickly regenerate, making them almost impossible to completely eliminate.
What is more worrying is that most of these black market platforms are located in foreign jurisdictions such as Russia, Dubai, Cambodia, and Singapore, completely beyond the reach of Philippine regulation. Once players become addicted or suffer financial losses, there are almost no channels for appeal. The situation of minors addicted to illegal gambling is also worsening due to the regulatory vacuum. Tengco stated, "Today, the share of the legal online gambling market has fallen to less than 40%, while illegal platforms have captured more than 60% of the market."
Industry Contradiction: Legal Pressured, Illegal Benefits
On one hand, the government hopes to cut off the gambling funding chain through anti-gambling orders and payment restrictions, protecting impoverished families and social stability; on the other hand, the rapid adaptation of the black market diminishes the effectiveness of these policies. The legal industry is pressured, while the illegal industry rises opportunistically, ultimately trapping regulation in a dilemma.
Whether the Philippines will opt for a stronger comprehensive ban in the future or try to introduce technological and financial innovations to balance industry development and social protection will determine whether the country's gambling industry can escape the "regulatory paradox."
