Today, the Philippine Senate held a highly-attended hearing on the issue of online gambling, focusing on the connection between e-wallet platforms and online gambling, as well as the social and regulatory challenges it poses. The Central Bank of the Philippines (BSP) announced an emergency directive at the hearing, requiring all e-wallet platforms nationwide to remove all icons and links that guide users to online gambling platforms within 48 hours.
BSP Deputy Governor Mamerto Tangonan explicitly stated at the meeting that this measure aims to cut off the main funding channels for online gambling and prevent its further spread in society. He emphasized that digital financial platforms must cooperate swiftly, or they will face severe penalties.
This decision comes against the backdrop of the rapid growth and controversy of the online gambling industry in the Philippines. According to data provided by the Philippine Amusement and Gaming Corporation (PAGCOR) at the hearing, online gambling has become one of the significant sources of revenue for the gambling industry in recent years. Since the acceleration of online gambling operations during the pandemic in 2020, its annual revenue has soared from approximately 12.9 billion pesos in 2020 to 154 billion pesos in 2024, an astonishing increase.
PAGCOR emphasized that this revenue has brought substantial contributions to the national treasury and provided job opportunities for some sectors. However, senators generally questioned whether such economic benefits are worth the cost of social stability and public interest.
At the hearing, several senators expressed strong concerns about the negative impacts of online gambling. Committee Chairman Erwin Tulfo bluntly stated that online gambling is undermining the social structure of the Philippines, leading to broken family relationships, soaring debts, and rising crime rates. He criticized some e-wallet companies for not voluntarily blocking related features and even attracting users to participate in gambling activities with convenient payments.
Tulfo warned that if platforms do not thoroughly remove related links within the specified deadline, they will be summoned to the Senate and may face charges of "contempt of Congress." He also called for considering a complete ban on online gambling, stating, "Online gambling is destroying our lives and must be terminated immediately."
Senator Pia Cayetano, from the perspective of youth protection, pointed out that online gambling platforms are easily accessible to minors and are highly addictive, severely affecting their academics and mental health. She also mentioned that gambling-related debts often lead to domestic violence and public security issues, while the underlying money laundering and cross-border capital flows further fuel the cybercrime ecosystem. She warned that if swift action is not taken, this issue could evolve into a larger-scale social crisis in the coming years.
At the legislative level, the Senate currently has several proposals related to online gambling under consideration, including three aimed at completely banning online gambling and two aimed at strengthening regulation and enforcement of existing gambling operations. This hearing not only provided public opinion and data support for legislation but also highlighted the urgency of the Senate in pushing for policy changes.
The BSP's 48-hour rectification order is seen as a signal that financial regulators will no longer rely solely on industry self-regulation but will directly intervene in the key financial circulation links of online gambling to curb its development from the root.
The impact of this action could be profound. If e-wallet platforms sever connections with online gambling on time, the flow of funds for online gambling will be significantly restricted, and the operating costs of illegal platforms will also rise significantly. This may prompt some operators to exit the market or turn to more covert channels. However, at the same time, this may also lead to the growth of the underground gambling market, posing new challenges for law enforcement.
Therefore, how to restrict illegal gambling, protect public interests, and ensure that legitimate economic activities and financial innovations are not overly suppressed will become a core issue that the Philippine government and legislative bodies must weigh. This hearing and the BSP's measures mark a significant tightening in the regulation of online gambling in the Philippines, and the coming months may see more legislative and enforcement actions in this field.
