BSP developing online gambling rules for banks and e-wallets

THE BANGKO SENTRAL ng Pilipinas (BSP) is developing rules that require financial institutions to impose stricter safety protocols in an effort to mitigate risks from online gambling.

- By Luisa Maria Jacinta C. Jocson Senior Reporter

In a statement on Thursday, the central bank said it is "taking action to protect financial consumers from the risks associated with online gambling."

The booming gaming industry in the Philippines has led to calls to regulate or even ban the sector amid concerns over rising addiction and financial problems among Filipinos.

Philippine President Ferdinand R. Marcos, Jr. has warned that digitalization has made online gambling more accessible and destructive to Filipino families.

Mr. Marcos earlier expressed openness to supporting both taxation and regulation in the sector but did not bring this up during his State of the Nation Address last month.

The Department of Finance has proposed a tax on online gaming, as well as other possible measures to crimp the public's access to digital gambling platforms such as imposing limits on playing time or cash-in.

The BSP said it is "finalizing new rules, developed following public consultation, that will require banks, e-wallets, and other financial service providers to adopt stronger safeguards against gambling-related harm."

These rules will include stricter identity verification measures such as biometric checks and facial recognition when utilizing funds for online gambling.

The central bank also seeks to impose "daily limits on gambling-related transfers to reduce excessive financial losses and time-based restrictions on gambling payments to help curb impulsive behavior."

Other measures include user tools to implement personal spending caps, voluntary breaks, or options to self-exclude from gambling transactions.