Philippine Central Bank Moves to Restrict Online Gambling
The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has released draft guidelines for digital marketplace operations that explicitly prohibit banks and electronic money issuers (EMIs) from offering gambling-related products.
LISTEN TO THIS ARTICLE:The proposed regulations include live online casinos and various betting services and were detailed in a circular posted on the BSP’s website, but they are still under review. Under the draft rules, banks and EMIs would be permitted to run digital marketplaces, which allow them to sell both their own products and those of third-party providers through a single online platform. However, while they can offer financial and non-financial products, any gambling-related services are strictly forbidden.
The BSP states that activities linked to online casinos, electronic gaming, online betting, or any other form of gambling are prohibited. Additionally, the restrictions extend to any activity that could potentially harm the reputation of marketplace participants or the broader financial system.
PAGCOR Expresses Concern over Potential Industry Impact
The Philippine Amusement and Gaming Corporation (PAGCOR) has responded to the draft rules with concern and warned that the new guidelines could significantly affect the country’s growing electronic gaming sector.
According to local press reports, PAGCOR Chairman and CEO Alejandro H. Tengco was surprised by the proposal and noted that BSP did not consult PAGCOR or seek its opinion before releasing the draft guidelines.
In January, PAGCOR reported that eGames and eBingo generated 50.03% of total gaming revenue, amounting to PHP48.79 billion ($850 million). While some digital marketplaces do not directly host gambling platforms, they provide links to external gaming sites, which could also be affected by the restrictions.
Tengco said that he would direct PAGCOR’s legal team to review the guidelines and prepare a response, despite the absence of any official communication from the BSP.
More Regulation News
Strict Requirements for Digital Marketplace Providers
The draft guidelines also outline strict requirements for banks and EMIs that wish to operate as digital marketplace providers. Institutions must obtain BSP approval and meet prudential standards, which include maintaining a minimum net worth or capital of PHP1 billion ($17 million).
Additionally, applicants must implement strong risk management measures across several critical areas, including cybersecurity, anti-money laundering, data privacy, consumer protection, and counter-terrorism financing.
The BSP argues that these regulations are designed to enhance governance and risk management among financial institutions operating digital marketplaces. It also said that the platforms should drive innovation, financial inclusion, and improved customer experience through strategic partnerships between financial institutions and service providers.
RELATED TOPICS: Regulation
Latest News
Most Read
Must Read
Interviews
Sweepstakes Casinos: Thriving in an Ever-Changing Industry – Interview with Attorney Stephen C. Piepgrass
Feb 17, 2025
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Philippine Central Bank Moves to Restrict Online Gambling