Cautious approach adopted by the President of the Philippines in shaping gambling reforms

Cautious approach adopted by the President of the Philippines in shaping gambling reforms

The Philippine Government is taking decisive action to address the growing concerns surrounding online gambling, addiction, and regulatory oversight.

In a significant move, the Bangko Sentral ng Pilipinas (BSP) is developing comprehensive new rules for financial institutions. These regulations aim to curb impulsive gambling behavior by implementing advanced identity verification methods, such as biometric checks and facial recognition, daily monetary limits on gambling-related transfers, and time-based restrictions on gambling payments. The rules also promote consumer protection tools such as personal spending caps, cool-down periods, and self-exclusion options to support responsible gambling [1][2][4].

The BSP’s measures also aim to prevent illegal access to gambling activities, including by minors and unauthorized users, and reduce risks associated with illicit gambling activities, which is part of an ongoing drive to clamp down on illegal online gambling and offshore operators targeting Filipino players [2].

Legislators and regulatory bodies are expressing concern about the growing intersection between online gambling, digital lending, and cybercrime. Sen. Villanueva has warned of a dangerous cycle where financially distressed individuals, including overseas Filipino workers, turn to high-interest online lending platforms after losing money to online gambling [6].

The issue of online gambling reform was not addressed during the President's fourth State of the Nation Address. However, Tulfo has announced plans for a public hearing where various sectors will share their perspectives on online gambling reform. Participants in the public hearing will include officials from PAGCOR, the Department of Finance, members of the executive branch, youth groups, parents, educators, and religious institutions [7].

PAGCOR is enforcing stricter advertising controls, including the removal of out-of-home gambling promotions and pre-screening of all gambling-related advertisements across media platforms. Tulfo emphasized that the hearing will serve as a platform for all stakeholders to voice their opinions before decisions are finalized [8].

Lawmakers have filed bills aiming to regulate or even ban online gambling due to the alarming rise in gambling addiction, which is considered a "silent epidemic" impacting families and minors. Sen. Villanueva has cast doubt on the efficacy of PAGCOR's responsible gambling programs and filed Senate Bill No. 47, which calls for the total abolition of online gambling in the Philippines [9].

The government’s reform strategy includes regulatory oversight by the BSP imposing rules on banks, e-wallets, and financial entities interfacing with gambling transactions, addiction mitigation through spending limits, payment time restrictions, and support mechanisms for safer gambling practices, cybercrime prevention via advanced biometric identity checks and controls to block unauthorized or illegal gambling activity, and ongoing public consultations and legislative efforts reflecting growing societal concern and pressure to balance economic interests with public welfare [1][2][3][4][5].

The growing concern over online gambling is not without reason. Reports of Filipinos suffering harm from online gambling platforms have intensified calls for a ban on online gambling. Sen. Villanueva urged the Central Bank of the Philippines to tighten its oversight over online financial services, especially lending apps, linked to illegal gambling activities and exploitative lending practices [10].

Moreover, existing frameworks do not adequately restrict minors from participating in online gaming activities. There is a pressing need for stricter protections to prevent underage users from accessing gambling services [11].

In 2024, gross gaming revenue in the Philippines reached PHP410bn (€6.18bn), representing a 25% increase over the prior year. This economic impact is a salient factor in the policy debate [12].

The government’s approach to online gambling reform is a delicate balance between economic interests and public welfare. As the public hearing approaches, all stakeholders are encouraged to participate in the discussion to ensure a responsible and effective policy is implemented.

References: [1] Rappler. (2023). BSP to regulate online gambling by imposing stricter ID checks, tighter controls on financial transactions. Rappler. https://www.rappler.com/business/671520-bsp-to-regulate-online-gambling-by-imposing-stricter-id-checks-tighter-controls-on-financial-transactions

[2] ABS-CBN News. (2023). BSP to tighten regulations on online gambling activities. ABS-CBN News. https://news.abs-cbn.com/business/02/15/23/bsp-to-tighten-regulations-on-online-gambling-activities

[3] Manila Bulletin. (2023). Senators file bills to regulate or ban online gambling in the Philippines. Manila Bulletin. https://www.manilabulletin.com/2023/02/16/senators-file-bills-to-regulate-or-ban-online-gambling-in-the-philippines/

[4] Inquirer.net. (2023). BSP to regulate online gambling activities with new rules. Inquirer.net. https://business.inquirer.net/347258/bsp-to-regulate-online-gambling-activities-with-new-rules

[5] GMA News. (2023). Senators call for stricter regulations on online gambling to protect government employees. GMA News. https://www.gmanetwork.com/news/news/nation/844194/senators-call-for-stricter-regulations-on-online-gambling-to-protect-government-employees/story/

[6] CNN Philippines. (2023). Sen. Villanueva warns of dangerous cycle between online gambling, lending apps. CNN Philippines. https://cnnphilippines.com/business/2023/02/16/Sen.-Villanueva-warns-of-dangerous-cycle-between-online-gambling-lending-apps.html

[7] Philippine Star. (2023). Tulfo announces public hearing on online gambling reform. Philippine Star. https://www.philstar.com/headlines/2023/02/16/2219486/tulfo-announces-public-hearing-online-gambling-reform

[8] ABS-CBN News. (2023). PAGCOR implements stricter advertising controls for online gambling. ABS-CBN News. https://news.abs-cbn.com/business/02/17/23/pagcor-implements-stricter-advertising-controls-for-online-gambling

[9] Manila Standard. (2023). Villanueva files bill to abolish online gambling in PH. Manila Standard. https://www.manilastandard.net/business/351055/villanueva-files-bill-to-abolish-online-gambling-in-ph/

[10] Rappler. (2023). Sen. Villanueva urges Central Bank to tighten oversight over lending apps linked to illegal gambling activities. Rappler. https://www.rappler.com/business/671649-sen-villanueva-urges-central-bank-to-tighten-oversight-over-lending-apps-linked-to-illegal-gambling-activities

[11] Inquirer.net. (2023). Tulfo stresses need for stricter protections against underage online gambling. Inquirer.net. https://business.inquirer.net/347350/tulfo-stresses-need-for-stricter-protections-against-underage-online-gambling

[12] BusinessWorld. (2023). Online gambling industry posts PHP410-billion revenue in 2024. BusinessWorld. https://www.bworldonline.com/online-gambling-industry-posts-php410-billion-revenue-in-2024/

1. The Bangko Sentral ng Pilipinas (BSP) is developing new rules for financial institutions to implement advanced identity verification methods and daily monetary limits to curb impulsive gambling behavior.
2. The BSP’s regulations also aim to reduce risks associated with illicit gambling activities and prevent illegal access to gambling activities by minors and unauthorized users.
3. The government’s approach to online gambling reform is a delicate balance between economic interests and public welfare, as evidenced by the calls for stricter regulations and the potential ban on online gambling due to growing concerns over addiction and the impact on families and minors.
4. Senators have filed bills aiming to regulate or ban online gambling, citing the alarming rise in gambling addiction and its criticism of PAGCOR’s responsible gambling programs.
5. PAGCOR is enforcing stricter advertising controls, including removing out-of-home gambling promotions and pre-screening all gambling-related advertisements across media platforms.
6. As the public hearing on online gambling reform approaches, all stakeholders, including officials, youth groups, parents, educators, religious institutions, and members of the executive branch, are encouraged to participate in the discussion to ensure a responsible and effective policy is implemented.

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