The Bangko Sentral ng Pilipinas (BSP), the central banking authority of the Philippines, has announced a set of comprehensive new regulations concerning online gambling transactions in response to rising concerns about financial risks and societal impacts linked to digital gaming.
The draft circular from the BSP lays out strict limitations that would affect both users and payment service providers, indicating a firmer approach to online gambling, which includes the rapidly expanding esports betting industry.
BSP introduces stringent measures: Limits, time restrictions, and biometric checks
The proposed guidelines stipulate that users can transfer funds from their e-wallets to online gambling sites, capped at 20% of their average daily balance. In addition, each individual would be restricted to gambling transactions for a maximum of six hours per day.
Should users surpass designated thresholds categorized as «heavy usage,» they will be subject to an automatic 24-hour cooling-off period during which they cannot make further transactions.
To bolster identity verification and curb fraudulent activities, the BSP mandates biometric authentication methods, such as facial recognition, for account access. Additionally, options for lending or credit will be disabled when users link their e-wallets to any gambling site. These measures aim to curb excessive spending, mitigate addiction risks, and enhance the financial sector’s resilience against money laundering and illegal activities.
Payment service providers and gambling operators must acquire BSP approval, maintain a minimum capitalization of ₱300 million, adhere to strict anti-money laundering (AML) and counter-terrorism financing (CTF) controls, and submit routine compliance updates. Once finalized, these regulations will come into force 15 days after publication, giving existing providers six months to comply fully with the new standards.
Esports betting caught in regulatory scrutiny in the Philippines
Although these new rules target the wider online gambling sector, they could significantly affect the esports betting market, which has thrived in the Philippines due to its dynamic gaming community and extensive use of digital payment systems.
In 2024, the local esports sector was appraised at over $26 million and is projected to double by 2033. With over 43 million active gamers and popular titles such as Mobile Legends: Bang Bang, Call of Duty: Mobile, and Dota 2, the Philippines hosts major tournaments and attracts sponsorships, including from esports betting companies.
The imposing daily fund limits and mandated downtime could obstruct betting during major esports competitions. High-stakes events that captivate audiences for prolonged periods might hit the six-hour transaction cap, triggering cooling-off phases at pivotal times. Nonetheless, betting operators and payment services, such as GCash and Maya, have shown support for these regulations as part of initiatives to promote responsible gambling.
The BSP’s proposed rules are slated to take effect 15 days following their official release, allowing a six-month alignment period for existing service providers to comply fully with the new framework.
This latest set of regulations exemplifies the challenge of fostering a burgeoning digital entertainment sector, particularly in esports and betting, while safeguarding consumers against addiction, fraudulent behavior, and excessive financial risk. The success of these measures will depend on how effectively the government, payment platforms, and betting operators collaborate to ensure growth aligns with accountability.
