Most recently, the Philippine Amusement and Gaming Corporation reported a sharp decline in online gambling activity. This is primarily due to the Central Bank of the Philippines’ order for electronic wallets to sever direct connections with licensed online casinos.
PAGCOR Chairman Al Tengco, speaking at a recent budget briefing, shared the policy that immediately cut online betting transactions by half.“ The ban had an immediate and measurable impact,” Tengco said.
Thus, noting that regulators are tightening their hold over the fast-growing sector. He also credited the Bangko Sentral ng Pilipinas for “implementing stricter guidelines to curb potential misuse of e-wallet services.”
BSP Deputy Governor Mamerto Tangonan earlier informed Congress that wallet providers were given 48 hours to sever all links and remove icons connecting users to gambling platforms. Leading players such as GCash and Maya complied with the directive within the deadline. GCash, for its part, clarified that it “has no ties to illegal gambling operators.”
Senate Scrutiny and Social Risks
The ban coincided with heightened scrutiny in the Senate, where lawmakers raised concerns about the social risks of gambling. They were particularly concerned about the rise in gaming addiction across the country.
BSP officials, including Tangonan, faced questions on what systemic measures are being introduced to limit the accessibility of gambling platforms and how easily players can fund their accounts.
Regulation Hindered by Offshore Operators
Tengco acknowledged that while PAGCOR maintains oversight of licensed operators, “only 40% of online gambling platforms are legally authorised” and under its jurisdiction. The majority, he said, are based overseas and continue to operate illegally. He gave Russia, Dubai, Cambodia and Singapore as examples for key hubs for such offshore providers.
PAGCOR has accredited more than 70 licensed online operators to date. Tengco stressed that these firms “comply with national regulations, which helps protect Filipino consumers.” However, he admitted that enforcement against unregulated sites “remains difficult despite coordination with state agencies.”
Industry Growth Despite Restrictions
Still, PAGCOR data showed the local gaming industry recorded substantial gains in the first half of 2025. Gross gaming revenues reached PHP214.75 billion (€3.24bn), a 26% increase from the PHP171bn generated in the same period a year earlier. The increase came mainly from electronic gaming, including e-bingo and online casino products, which contributed PHP114.83bn. This is more than half of the total.
These figures reflect a strong affinity among local players for iGaming. However, Tengco warned that unchecked expansion carries risks. PAGCOR has therefore maintained a moratorium on new online gaming licences for over a year to prevent runaway growth while monitoring systems are improved.
Study Links E-Wallet Restrictions to Migration
A recent study by sociocultural research group The Fourth Wall suggested that the BSP’s e-wallet directive has inadvertently redirected players away from regulated platforms and toward unlicensed ones.
The researchers found that regulated sites lost 70% of their players immediately after wallet integration was removed, while unregulated operators recorded a 40% increase in traffic. The study surveyed more than 1,000 active online gamblers in Metro Manila, Metro Cebu, Metro Davao, and other key growth centres.
Additionally, participants in the study admitted that they hold high confidence in the safety of e-wallets, as they are 2.3 times more likely to switch to unlicensed websites than those with lower trust scores.
Age Verification is Another Factor
Age verification through e-wallets was another predictor of behaviour. Players who rate this safeguard are 2.4 times more likely to assume that illegal websites with wallet integration offered the same protections, and thus shift their activity towards them.
Reliance on digital payment systems has also made things worse. Gamblers who consider e-wallets as essential to their play are twice as likely to switch once licensed platforms lose their e-wallet access. Since unlicensed providers continue offering wallet integration, many players interpreted this as proof of legitimacy despite the lack of regulatory oversight.
Double-Edged Impact
According to the study, the widespread reliance on e-wallets represents a double-edged sword. On one hand, the BSP’s ban sharply reduced transaction volumes on licensed sites. On the other hand, it channelled a significant portion of the market toward unregulated operators beyond Philippine jurisdiction.
Experts warn that unless regulators reconcile payment restrictions with consumer habits, the policy risks worsening the very problems it aims to address.
“While the BSP move significantly reduced transaction volumes on licensed sites, it simultaneously pushed a substantial segment of the market into the hands of illegal operators,” the report concluded.
DILG Bans Government Employees from iGaming Sites
Other gambling-related topics from the Philippines include the Department of the Interior and Local Government's decision to ban government employees from accessing online gambling sites. After the ban, personnel, attached agencies, and local government officials are prohibited from playing on iGaming sites.
According to Interior Secretary Jonvic Remulla, the measure would protect public trust and ensure officials serve with integrity. The recent directive covers agencies such as the Philippine National Police, Bureau of Fire Protection, and National Youth Commission, among others, and takes effect immediately.
However, the Civil Service Commission explained that the prohibition is contained within DILG. For a nationwide ban, the country would require legislation from Congress explicitly outlawing online gambling for all government workers.
