Clampdown on eWallets spurs shift to unregulated gambling platforms in PH

Online gambling activity in the Philippines has entered a new phase following a directive by the Bangko Sentral ng Pilipinas (BSP) requiring eWallet platforms to remove in-app links to gambling sites. While the move was intended to protect consumers and curb gambling addiction, a surge in unregulated platform activity suggests a complex behavioural response.

The BSP ordered all BSP-supervised institutions, including digital wallets, to remove links providing in-app gambling access. Deputy governor Mamerto Tangonan announced the directive on the same day that the Senate Committee on Games and Amusement held its first hearing on online gambling.

Two major eWallet providers, GCash and Maya, confirmed their compliance. GCash said it would “fully comply with the BSP’s proactive directive to remove links and icons that connect payment apps to online gambling platforms.” Maya similarly assured the public, stating, “We remain focused on serving our customers while fully complying with regulatory requirements.”

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Senator Erwin Tulfo, who chairs the Senate panel, noted that while eWallet companies had adhered to the BSP’s 48-hour deadline, operators were migrating to encrypted messaging and eCommerce platforms. “The fight against the accessibility of gambling to the public is far from over and we will do our best to work with the private sector and other stakeholders to come up with a holistic approach in addressing this problem,” Tulfo said, as quoted by The Philippine Star.

He cited BingoPlus, which announced that its games would remain accessible via Viber and its website, with deposits and withdrawals still enabled through eWallets. Tulfo added that some operators are also selling vouchers via platforms such as Lazada, which can be converted into gaming credits.

According to the Philippine Amusement and Gaming Corporation (PAGCOR), illegal online gambling sites constitute more than 60% of those accessed in the country. PAGCOR also estimates a 50% decline in online gambling transactions since the BSP eWallet delinking order took effect.

However, a study by The Fourth Wall shows a migration rather than a reduction of online gambling. After the 16 August ban, regulated platforms saw a 70% drop in users, while unregulated sites experienced a 40% increase. The report highlighted that players with high trust in eWallets were 2.3 times more likely to migrate to unregulated platforms, viewing the presence of familiar payment methods as a signal of safety.

“This dynamic highlights how payment channels themselves can influence perceptions of legitimacy,” The Fourth Wall research director John Brylle Bae said. He added that age verification further contributes to perceptions of security, even on unregulated sites.

GCash has reaffirmed its “zero tolerance” stance against illegal online gambling. “Illegal online gambling undermines financial integrity and public welfare. GCash has no links to illegal gambling operators - anyone connecting our brand to these sites is either misrepresenting us or illegally using our platform,” said Oscar Enrico Reyes Jr., president and CEO of G-Xchange Inc.

As lawmakers debate stricter regulation versus outright bans, the BSP and PAGCOR appear focused on balancing financial consumer protection with the practical challenges posed by technology-enabled migration. While eWallet delinking is a visible first step, research suggests that controlling player behaviour will require a nuanced understanding of digital payment ecosystems and the incentives they create.

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