The Bangko Sentral ng Pilipinas (BSP) (Central Bank of the Philippines) has proposed sweeping new regulations on online gambling payments in a bid to address growing concerns over financial risks and social harm associated with digital gaming.
The BSP draft circular introduces stringent restrictions that would directly impact both players and payment service providers, signaling a tougher stance on online gambling, which has the rapidly growing esports betting sector under its umbrella.
BSP proposes strict measures: Caps, time limits, and biometrics
Under the proposed rules, daily fund transfers from a user’s e-wallet to online gambling platforms would be limited to no more than 20% of the individual’s average daily balance. In addition, each user would only be allowed to conduct gambling-related transactions for up to six hours per day.
If users exceed certain activity thresholds classified as “heavy usage,” they will be automatically subjected to a 24-hour cooling-off period, during which no further transactions can be made.
To enhance identity verification and prevent fraud, the BSP is also requiring biometric authentication, such as facial recognition, to access accounts. Furthermore, the use of lending or credit options would be disabled when a user links their e-wallet to any gambling platform. These new requirements aim to limit excessive spending, reduce the risk of addiction, and strengthen the financial system’s defenses against money laundering and illicit activity.
Payment service providers and gambling operators will be required to obtain BSP authorization, maintain a minimum capital of ₱300 million, uphold strict anti-money laundering (AML) and counter-terrorism financing (CTF) standards, and submit regular compliance reports. Once finalized, the regulations will take effect 15 days after publication, and existing providers will have six months to fully comply with the new measures.
Esports betting caught in PH regulatory crossfire
While the new rules are aimed at the broader online gambling industry, they could have effects on the esports betting sector, which has flourished in the Philippines due to the country’s vibrant gaming and community and widespread use of digital payment platforms.
In 2024, the local esports market was valued at over $26 million and is expected to double by 2033. With more than 43 million active gamers and popular esports titles like Mobile Legends: Bang Bang, Call of Duty: Mobile, and Dota 2, the country hosts major tournaments and attracts sponsorships, including those from esports betting operators.
The proposed daily fund caps and enforced downtime could potentially hinder wagering activity during major esports events. High-stakes matches that keep viewers engaged for extended periods may hit the six-hour transaction limit, triggering a cooling-off period at critical moments. Nevertheless, betting operators and payment service providers, including widely used platforms like GCash and Maya, have expressed support for the regulations as part of efforts to encourage responsible gambling.
BSP’s proposed regulations are set to take effect 15 days after their official publication, giving existing service providers a six-month transition period to achieve full compliance.
This latest round of regulations reflects the challenge of promoting a rising digital entertainment industry, especially esports and betting, while protecting consumers from addiction, fraud, and excessive financial exposure. The outcome will rest on how well the government, payment platforms, and betting operators can collaborate to ensure growth is matched with accountability.
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