When the Bangko Sentral ng Pilipinas (BSP) directed e‑payment services to “delink” from online gambling platforms, in-app icons and access points were swiftly removed. Over the weekend, e-wallets like GCash and Maya complied with the order by the August 17 deadline. In the following days, PAGCOR—the Philippine Amusement and Gaming Corporation—observed a 50% decline in online gaming transactions on authorized platforms, signaling an immediate market shift. “From Sunday to yesterday, online gaming transactions fell by about 50 percent after the Bangko Sentral ordered these e-payment platforms to temporarily delink from online gambling integration,” said PAGCOR Chair Alejandro Tengco during a House of Representatives briefing on August 20.
Meanwhile, BSP Deputy Governor Mamerto Tangonan had emphasized that the directive was a protective measure, urging e‑wallet operators to remove gambling links within 48 hours to shield consumers and prevent misuse of financial infrastructure.
Regulated Platforms Obey, Illegal Sites Thrive
Although this regulatory step affected compliant platforms, illegal and offshore operators proved far more elusive. Tengco remarked, “It’s really hard to go after [illegal sites],” acknowledging that while regulated operators under PAGCOR followed the BSP directive, those outside jurisdiction continue proliferating.
He estimated that only 40% of online gambling platforms are licensed, leaving a troubling 60% operating illegally from abroad—based in jurisdictions like Russia, Dubai, Abu Dhabi, and Cambodia. According to PAGCOR’s latest data, 12,000 illegal gaming sites were flagged compared to just 77 licensed ones. As reported by The Philippine Star, to date, authorities have managed to shut down over 8,000 of these illicit platforms, but operators often evade capture by making minor changes to their web presence.
These unregulated sites are not just numerous—they also pose increased risk. Tengco noted that they incentivize deeper betting through extravagant bonuses; “if you deposit Php100,000 … they give four times, five times bonuses,” techniques that exacerbate gambling addiction and exploit users. He further highlighted that these platforms are a core driver in rising underage gambling, including by users under 21.
Survey Indicates Shift, Not Reduction, in Online Gambling
A study by The Fourth Wall adds nuance to the observed trends. It found that while licensed platforms lost up to70% of users after e-wallets cut their integration, illegal sites experienced a 40% rise in traffic. This suggests a shift in betting behavior rather than an overall decline in activity.
The poll—conducted among 1,250 active online gamblers across urban zones using panels and in-person surveys—had a ±2% margin of error at a 95% confidence level. It revealed that reliance on e-wallets created misleading perceptions of safety; gamblers trusted platforms merely because they accepted familiar payment channels, even when sites were unregulated.
For PAGCOR, the collapse in licensed activity comes at a fiscal cost. In the first half of 2025 alone, the regulator earned ₱114.83 billion from online gaming—over 53% of its total gaming revenue of ₱215 billion. These revenues fund universal healthcare and social programs. Some lawmakers, however, remain concerned that the social harms associated with gambling may outweigh those benefits.
Tengco pleaded with legislators to bolster PAGCOR’s capabilities rather than impose a blanket ban. He emphasized that illicit operators will always find workarounds, and warned against blaming payment apps, which are often abused via “mule merchant” accounts. These masquerade as legitimate purchases, disguising betting transactions and enabling illegal activities.
To counter these challenges, he urged Congress to provide stronger authority and tools to target illegal platforms while maintaining oversight over lawful operations.
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