(Manila, 21st, Comprehensive Report) The new measure by the Philippine Central Bank ordering digital wallets, payment apps, and related institutions to remove online gambling links has begun to show results. The Philippine Amusement and Gaming Corporation (PAGCOR) revealed that, within three days of the new rule taking effect, the volume of online gambling transactions dropped by half.
According to The Philippine Star, PAGCOR Chairman and CEO Alejandro Tengco pointed out during a congressional briefing on Wednesday (20th) that observations from August 17 to 19 showed that online gambling transactions were indeed impacted by the new measure, dropping by about 50%. However, he admitted the long-term effects remain to be seen.
Gambling Shifts to Illegal Platforms, Regulatory Dilemma
A market research report from “The Fourth Wall” shows that after betting links were removed from digital wallet platforms, the number of locals participating in gambling through legal websites plummeted by 70%, while the number of users turning to illegal or unregulated gambling platforms increased by 40%, indicating that gambling activity has not actually decreased but merely moved to different channels.
The Philippine central bank earlier required financial institutions to remove all icons directing to gambling websites by August 17th in a bid to curb online gambling issues. However, the central bank has not banned gambling platforms from providing top-up channels, so players can still fund their gambling accounts, just not directly through wallet applications.
60% of Gaming Operators Unlicensed, Authorities Face Challenges in Complete Crackdown
Tengco emphasized that the real issue lies with overseas illegal gambling operators. It is reported that currently 60% of online gambling operators in the Philippines are unlicensed, and regulatory agencies have no authority to supervise them and can only hand the cases over to law enforcement and the communications department.
So far, authorities have reported 11,800 illegal operators, more than 8,000 of which have been shut down, but most operators simply change names and resume business, and some even allow minors under 21 to place bets.
In addition, PAGCOR has suspended the issuance of new licenses since March last year. There are currently 70 licensed online gambling platforms in the country. This year, online gambling remains the corporation’s largest source of income, with net earnings projected at 60 to 62 billion pesos (about SGD 1.35 to 1.4 billion), accounting for roughly 60% of total revenue.
Tengco called on Congress to strengthen regulatory authority and step up efforts to crack down on illegal platforms, rather than enacting an outright ban on online gambling.