Philippine Central Bank Intervenes in Online Gambling Payment Systems: Draft Proposes "Transfer Limits + Facial Recognition + Cooling-off Period" as New Regulations

To curb the financial risks brought by online gambling and to strengthen the protection of user rights, the Central Bank of the Philippines (BSP) issued a regulatory draft on July 14, 2025, proposing to establish a compliance management framework applicable to electronic gambling payment behaviors. The draft will apply to all payment service providers (PSPs) and payment system operators (OPSs) engaged in online gambling fund transactions, requiring them to obtain BSP approval before operation.

Key regulatory measures include:

1. Implementation of payment restriction mechanisms:

- The maximum amount that users can transfer into their gambling accounts per day shall not exceed 20% of their average daily balance;

- The maximum continuous betting time is limited to 6 hours;

- High-frequency betting users will be forced into a 24-hour "cooling-off period."

2. Strict user access:

- Only adults aged 21 and over are allowed to use gambling-related payment services;

- Public servants, military and police personnel, students, and beneficiaries of the government's poverty alleviation program "4Ps" are explicitly prohibited from participating.

3. Enhanced qualifications for payment platforms:

- Gambling payment platforms must have a registered capital of at least 300 million pesos;

- Establish a board-level compliance committee and set up an anti-money laundering internal control system;

- Mandatory implementation of user facial recognition verification mechanisms, and provide risk warnings, account self-restriction functions, and a "one-click account closure" option.

4. Elimination of lead generation and internal gambling:

- All payment institutions are strictly prohibited from recommending or redirecting to gambling platforms;

- PSP and OPS personnel are strictly forbidden from participating in any form of online gambling;

- BSP will conduct periodic compliance inspections and special audits on payment institutions.

5. Strict penalty mechanisms to be implemented simultaneously:

- Each violation transaction can be fined up to 1 million pesos;

- Serious violators will be suspended or even have their business licenses revoked;

- Platforms already in operation must complete rectifications within six months, otherwise, they will be ordered to shut down services.

The Central Bank of the Philippines stated that the draft aims to address the widespread concerns about insufficient regulation of online gambling and to build a "more orderly and responsible digital financial environment" in the Philippines.