The Philippine Amusement and Gaming Corporation (PAGCOR) has reported a 40 to 50 percent decrease in income attributed to the recent disconnection of major electronic wallet (e-wallet) providers from online gambling payment systems, supporting the development of stricter Philippine online gambling regulation.
This follows the enforcement of a regulatory directive issued by the Bangko Sentral ng Pilipinas (BSP), which mandated platforms such as GCash and PayMaya to cease processing payments related to online gambling within a specified period.
Key takeaways:
- PAGCOR reports 40-50% revenue decline following e-wallet disconnection
- Authorities developing AI tools to monitor illegal gambling websites
- Legislative debates intensify over Philippine online gambling regulation and social impact
According to PAGCOR Assistant Vice President Jessa Mariz Fernandez, internal data from the agency’s accounting and Electronic Gaming Licensing Department revealed an immediate decline in revenues subsequent to the delinking of these key financial intermediaries. Fernandez emphasized PAGCOR’s preference for strict Philippine online gambling regulation rather than an outright ban, a stance that aligns with the BSP’s approach.
Regulatory Measures and Technological Developments
In response to difficulties in monitoring unauthorized online gambling activities, PAGCOR is developing an artificial intelligence-based tool aimed at detecting and blocking unlicensed gambling websites in real time. This technology will be deployed in collaboration with the Cybercrime Investigation and Coordinating Center, the National Telecommunications Commission, and the Department of Information and Communications Technology. The cooperation among these agencies is expected to enhance enforcement against operators conducting illegal gambling services online.
Fernandez reiterated that the agency’s approach focuses on regulating the industry while coordinating with financial and technological regulators to curb illicit operations. The BSP has also committed to submitting a position paper to the Philippine Congress, detailing the merits and disadvantages of implementing a total ban versus strengthening regulatory frameworks for online gambling platforms.
Social Concerns and Legislative Initiatives
The regulatory shifts come amid rising social concerns over the expansion of online gambling in the Philippines. Recent data cited by Senator Win Gatchalian indicate that over 32 million Filipinos, approximately half of the adult population, engaged in online betting activities as of May 2025.
This trend has prompted various legislative proposals addressing the social impacts of gambling. Some lawmakers, including Senators Pia and Alan Cayetano, have filed bills proposing outright bans on online gambling.
Proposed Reforms on Philippine Online Gambling Regulation
Others, such as Senators Sherwin Gatchalian and Risa Hontiveros, advocate for harm-reduction measures like imposing gambling levies and restricting direct e-wallet links to gambling platforms. Senator Cayetano has further proposed allowing local government units to opt out or regulate online betting operations within their jurisdictions.
Senate Committee Chair Senator Erwin Tulfo highlighted the seriousness of these reforms, signaling potential repercussions for regulatory bodies such as the BSP should compliance deadlines not be satisfactorily met. The evolving legislative and regulatory discourse balances economic interests against social costs associated with the growing online gambling sector.
“Our position is for strict regulation of the industry,” stated Fernandez during a Senate Committee hearing, reflecting the agency’s viewpoint amid ongoing debates on whether to ban or regulate online gambling.
