The Philippines is caught amid a regulatory fever. The country is revisiting its gambling laws, with no clear goal in sight – is it to ensure better player protection, or deal with the activity altogether?
The Philippines passes new measures tied to e-wallet gambling transactions
As no clear action plan has been laid out just yet, at least President FerdinandMarcos Jr has said that he would not go forward with a proposal to ban eGames completely. However, there will be tightening of the regulatory screws all the same.
Now, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, has taken a step in that direction, ordering e-wallets to stop transacting money to online gambling platforms. This coincides with the industry’s response to strengthen protection.
The prohibition applies immediately as of Thursday, with a 48-hour grace period that platforms have to apply to sever all connections with such platforms.
The measure applies to any gambling transactions, including products, services, and features that "redirect an account holder to a gaming/gambling site." This comes only several days after the bank first confirmed that it is looking to introduce measures that are designed to strengthen consumer protections.
Casino Guru's Head of Casino Research, Matej Novota, welcomed the measures, but also remained cautious, highlighting the need for follow-up action in order to determinme the measures' effectiveness and efficiency: "I support any initiative that prioritizes player protection and strengthens industry safety. However, I caution that rushed decisions often miss the mark and risk driving players toward the black market. It’s essential to observe how these new measures will actually affect the market before drawing conclusions."
Originally, the central bank expected companies and financial services that are responsible for financial transactions to comply with much better rules. The original measures also envisaged introducing time limits on how much a player can spend on gambling, as well as maximum caps.
This week also saw several bills introduced in the Philippine Senate to pass regulatory changes to the existing framework that would either seek to completely ban online gambling or restrict the activity’s reach and influence.
More pragmatic lawmakers, such as Senator Erwin Tulfo, outlined the current state of legal affairs, saying that there were two plans put forward – a complete ban or a stricter and more effective regulation. He seems to favor the latter option, but at the same time, he has a clear message to send.
Lawmakers are split on what to do next
"The Philippines will not be a playground for gambling syndicates, […] legal or illegal," Senator Tulfo added. There has been mounting pressure to do away with online gambling completely, but it has mostly originated from within the government and other power centers – such as the Catholic Church.
Ordinary Filipinos are less likely to seek an outright ban on the activity, with around 20% backing it, while 51% or so siding with the view that a regulated market is necessary. A recent report focusing on e-sabong showed that despite the activity’s ban, it has continued to flourish all the same.
