BSP to tighten rules on online gambling

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) will impose strict controls on online gambling-related payments processed through digital platforms amid growing public concern over minors and vulnerable people accessing these services.

In a draft circular released for public comment, the BSP outlined new rules requiring banks, e-wallets and other payment service providers (PSPs) to implement enhanced safeguards before facilitating online gambling payments.

These include setting daily spending caps, time limits and biometric verification to ensure that only eligible users such as adults not barred by law or regulation can access such services.

“The following regulations on online gambling payment services aim to promote responsible use of digital financial services, strengthen financial consumer protection, uphold financial health and mitigate the social and financial risks associated with online gambling,” the central bank said.

Under the draft guidelines, PSPs must create a separate “online gambling transaction account” or OGTA for each eligible user. Transfers to this account will be limited to 20 percent of the user’s average daily balance.

Use of the OGTA will be restricted to a maximum of six hours per day. If a user exceeds heavy usage thresholds, a 24-hour “cooling-off” period must be enforced.

To further prevent abuse, all lending options within the same app must be disabled once a user activates the OGTA.

PSPs are also required to implement facial biometric verification and offer tools for users to set their own time and fund transfer limits.

The BSP is also banning financial institutions and their employees from participating in online gambling activities themselves, citing the need to maintain public trust in the banking system.

Operators of gambling platforms, meanwhile, must pass stringent onboarding requirements, including full licensing, beneficial ownership disclosure and anti-money laundering compliance, before being allowed to partner with financial institutions.

Failure to comply with the new rules may result in suspension or revocation of a provider’s authority to offer online gambling payment services, and monetary penalties of up to P1 million per violation.

Once finalized, the new rules will take effect 15 days after publication.

PSPs currently offering gambling payment services will be given six months to comply or face immediate suspension of operations related to online gambling.