Philippine Senator and Chairman of the Economic Affairs Committee, Juan Miguel "Migz" Zubiri, recently made a strong call for the government to immediately implement stricter regulations on Online Lending Apps (OLAs) to cut off the funding chain behind online gambling. He pointed out that usury not only plunges thousands of Filipinos into a debt quagmire but also directly becomes a "hotbed" for online gambling, leading to escalating social problems.
Zubiri emphasized that although the Central Bank of the Philippines (BSP) has banned payment platforms from embedding gambling links, in reality, many gamblers turn to OLAs to borrow money to continue betting after losing money. Once unable to repay, they not only face exorbitant interest rates but also often suffer from cyber violence, personal humiliation, and even physical threats. He warned: "Such situations can easily lead to the collapse of debtors, some choose to commit suicide, and others take risks to repay debts, evolving into a public security issue."
Currently, some OLAs have interest rates as high as 20% per month, similar to the infamous "5-6 lending". Unlike traditional lending institutions that require years of approval and strict scrutiny, OLAs only need to register and have a capital of 1 million pesos to operate online, with almost no substantial regulation. This "low threshold, high interest rate" model becomes a breeding ground for gambling and debt crises.
Zubiri criticized this unfair situation, which puts legitimate small loan institutions and cooperative banks at a disadvantage. He called for OLAs to be fully incorporated into the BSP regulatory system and to unify regulatory and registration standards. He bluntly stated: "Online gambling and online lending are inseparable, and if the financial source is not curbed, any efforts to combat gambling will be minimally effective."
He finally warned that if the government continues to let the situation go unchecked, Philippine society may face a "dual crisis of debt and crime" intertwined with high-interest loans and online gambling.
