The Central Bank of the Philippines (Bangko Sentral ng Pilipinas, BSP) recently issued a public consultation draft proposing stricter regulation of banks and electronic wallet services involved in online gambling payments. This move aims to enhance protection for minors, problem gamblers, and other vulnerable groups, and to improve industry compliance.
New Regulation Core Measures: Limits, Time Restrictions, and Biometric Verification
According to the draft, all banks, electronic wallets, and payment service providers (PSP) that offer payment services to online gambling platforms will be required to implement stricter technical and behavioral restrictions:
Daily spending limit
Usage time limit (up to 6 hours/day)
Mandatory biometric verification
The draft also proposes the establishment of a dedicated "Online Gambling Transaction Account (OGTA)," which must operate independently of the main account, requiring users to manually transfer funds into the OGTA for gambling expenditures.
Specific restrictions include:
The OGTA account balance must not exceed 20% of the user's average daily balance
Upon reaching the daily usage time limit, a 24-hour "cooling-off period" will be triggered
Prohibition of any form of lending features in the OGTA
Six-month transition period, penalties up to one million pesos
According to BSP plans, once the new regulations are officially enacted, they will take effect 15 days later. Existing PSPs will have a six-month transition period to adjust their system processes and technical configurations.
Non-compliance will face severe penalties:
Each violation could result in a fine of up to one million pesos (approximately $17,600)
In severe cases, the authority to process gambling payments may be suspended or revoked
Additionally, operators must fully disclose beneficial owner information when entering PSPs and meet strict standards for anti-money laundering (AML) and consumer protection.
Financial Technology Alliance supports regulatory reform, commits to enhancing risk awareness
The Philippine Financial Technology Alliance, representing major participants such as GCash, Maya, and CIMB International Bank, has publicly expressed support for the BSP's regulatory draft.
The organization commits to:
Strengthening merchant account compliance reviews
Deploying real-time detection tools to identify illegal gambling payment flows
Conducting public education to enhance user awareness of online gambling risks
Background Supplement: Gambling Regulation Upgrade, Focusing on Responsibility and Financial Safety
This reform comes at a critical stage of the Philippine government's gradual strengthening of the gambling industry's regulation. The rapid expansion of online gambling has raised numerous social concerns, including increased youth participation, excessive consumption behavior, and potential cross-border money laundering issues.
The BSP states that this move is not only about financial compliance but also reflects its policy direction of promoting "financial responsibility and social protection in parallel." More supportive measures may be introduced in the future, such as inclusion in credit reports, payment interface reviews, and raising technical access thresholds.
