Increasing regulations sought by the Philippines' central bank for online gaming industries
The Philippine Central Bank, or Bangko Sentral ng Pilipinas (BSP), is taking steps to safeguard consumers and financial service providers in the online gambling sector. The new rules aim to create an environment where players can gamble responsibly and without worry.
Key aspects of these measures include:
- Removal of In-app Links and Icons: Financial institutions, such as e-wallets and payment apps, will be required to remove all in-app links and icons directing users to online gambling platforms within 48 hours of receiving the directive. This move is intended to reduce the ease of access and impulsive gambling via financial apps.
- Stricter Identity Verification: The new rules will also include stricter identity verification protocols for online gambling transactions. These protocols may involve the use of biometric checks and facial recognition technologies to verify the user’s identity when funds are used for gambling activities. This measure is designed to ensure that only authorized individuals engage in such transactions and to help prevent fraud or unauthorized spending.
- Daily Limits and Self-exclusion Options: The BSP is also considering introducing daily limits on gambling transactions and tools that allow players to set spending limits and self-exclude from gambling.
The BSP's initiatives are part of a broader effort to combat illegal online gambling and enhance player protection under national gaming laws. While the focus of these regulations is on the financial transaction side of online gambling, they do not currently extend to an outright ban on online gambling or restrictions on gambling platforms themselves.
It's worth noting that some parties in the Philippines have advocated for an outright ban on online gambling. However, according to Matej Novota from our website, banning an activity outright could drive more players to unprotected, unregulated, and unchecked offshore and black market operations.
The BSP's new regulations are part of a broader effort to keep black market operations at bay and to provide a regulatory mechanism for the payment ecosystem involved in online betting. The ultimate goal is to protect players and financial institutions by controlling access, requiring robust identity verification, and reducing gambling links in financial apps.
References:
- BSP to Introduce New Rules for Online Gambling
- BSP to Strengthen Safeguards for Online Gambling
- BSP to Implement Biometric Checks for Online Gambling
- PAGCOR and BSP Collaborate to Enhance Online Gambling Regulation
- The BSP's new regulations in the online gambling sector involve stricter finance-related measures, such as the removal of in-app links and icons, stricter identity verification, and the implementation of daily limits and self-exclusion options, aimed at protecting both players and financial service providers.
- Despite some calls for an outright ban on online gambling in the Philippines, the BSP's approach focuses on regulating the payment ecosystem involved in online betting, using biometric checks and facial recognition technologies, and controlling access to online gambling platforms, with the goal of keeping black market operations at bay.
