BSP moves to rein in online gambling payments

In a firm move to prevent the misuse of digital financial platforms, the Bangko Sentral ng Pilipinas (BSP) is set to implement tighter regulations on payment services related to online gambling.

The move comes amid growing public concern over the social and financial consequences of widespread access to gambling platforms.

The BSP recently posted a draft circular outlining proposed guidelines that aim to promote responsible use of digital financial services, protect consumers, and reduce the risks linked to the country’s expanding online gaming industry.

“It is imperative to ensure that digital payment services are not misused for activities that are socially harmful and detrimental to financial health,” the BSP said in its official statement.

Under the draft rules, Payment Service Providers (PSPs) and Operators of Payment Systems (OPSs) engaged in online gambling payments would be required to secure prior authorization from the central bank.

They must also comply with strict operational standards, including maintaining a minimum capitalization of P300 million and achieving a composite rating of at least “3” under the BSP Supervisory Assessment Framework.

Additionally, these entities must operate strong anti-money laundering and fraud prevention systems and form a board-level committee for compliance with anti-money laundering and counter-terrorism financing measures.

The BSP also emphasized that PSPs facilitating online gambling transactions would be prohibited from linking or redirecting users to gambling websites or providing any functionality that leads users to an operator’s platform.

The move follows mounting calls from lawmakers, religious leaders, and civil society groups for stricter control—or even a total ban—on online gambling.

Critics have raised alarm over the rising incidence of addiction and mounting financial issues affecting Filipino families due to easy access to digital gambling channels.

Earlier, the Department of Finance (DOF) proposed the imposition of a tax on online gaming and suggested measures to limit the public’s access to digital gambling, such as setting caps on cash-in amounts and playtime.

While online gambling continues to generate considerable revenue, government regulators are increasingly being urged to address the trade-off between economic gains and the growing social costs.

The BSP assured that it will continue engaging stakeholders as it finalizes the proposed regulatory framework before full implementation. TRACY CABRERA