The Bangko Sentral ng Pilipinas (BSP) is moving to crack down on digital payment services tied to online gambling, proposing a sweeping set of reforms designed to address consumer safety, financial risk, and tech misuse. A draft circular—open for public comment until July 25—lays out tough new conditions for payment service providers (PSPs) and operators of payment systems (OPSs) that work with gambling platforms.
Tighter Licensing and Compliance Standards
Under the proposed framework, all PSPs and OPSs must secure BSP authorization before handling online gambling transactions. They’ll need a minimum capitalization of PHP300 million and must score at least a “3” on the BSP’s Supervisory Assessment Framework.
These entities will also be required to implement strict anti-money laundering measures, fraud monitoring systems, and board-level committees focused on gambling operations.
Daily Betting Caps and Time Limits
The BSP plans to introduce Online Gambling Transaction Accounts (OGTAs), which users must open voluntarily. These accounts will only accept funds from the same financial institution and come with firm limits—daily deposits into an OGTA can’t exceed 20% of a user’s average daily balance. Any attempts beyond that will be blocked.
Online gambling will also be restricted to six-hour windows per day. Users flagged for “heavy usage” will face a 24-hour cooling-off period, temporarily locking them out from further transactions.
Security, Oversight, and Lending Restrictions
PSPs will need to implement biometric verification, such as facial recognition, for setting up and maintaining OGTAs. To guard against overspending, lending options for OGTA users must be disabled entirely.
Links or redirects to gambling sites will be banned from PSP platforms, and providers must maintain real-time risk-monitoring systems. Only operators in full regulatory compliance will be permitted as partners, and PSPs must continually assess the risk level of each gambling merchant they service.
Promoting Safer Gambling Habits
A major requirement of the draft rules is the introduction of a Responsible Online Gambling Policy by each PSP. This includes behavioral alerts, clear limits, and access to support resources. Employees of PSPs will also be banned from participating in online gambling.
Violations will be penalized through fines of up to PHP1 million per breach or PHP100,000 per day for continuing offenses. In serious cases, PSPs may have their licenses suspended or revoked. Any entity flagged for non-compliance must halt all gambling-related services until cleared by the BSP.
Wider Government Efforts: Tighter Rules and New Taxes on the Table
The BSP’s move dovetails with broader government efforts to regulate the fast-growing online gambling sector. Finance Secretary Ralph Recto recently confirmed the administration is reviewing measures such as raising taxes on gaming operators and tightening access.
Currently, electronic gambling operators face a combined tax rate of 38%—30% from PAGCOR and 5% from the Bureau of Internal Revenue. Recto said an additional 10% could raise PHP20 billion annually for the government.
Among other proposals: banning online gambling for government officials, mandating risk warnings similar to cigarette labels, and using the national ID system to block underage users.
“Maybe we can use the national ID… If you’re below 21, you shouldn’t be allowed to play online games,” Recto said.
He also floated the idea of forcing online gambling companies to list their ownership for better transparency. “It becomes more transparent. That’s a possibility,” he added.
Industry Response and Next Steps
Gaming giants such as Newport World Resorts, Okada Manila, and Solaire Resort have voiced support for regulation over prohibition, aligning themselves with responsible gambling standards set by PAGCOR.
While the BSP’s circular remains in draft form, it signals a clear shift toward a more controlled and accountable digital gambling landscape. The final version is expected to incorporate feedback submitted before the July 25 deadline.
