Central Bank of the Philippines Suggests Restrictions on Payment Methods and Daily Player Interaction in Online Gaming Sector
In a bid to enhance consumer protection, financial health, and responsible use of technology in gambling transactions, the Bangko Sentral ng Pilipinas (BSP) has proposed several new rules and restrictions for online gambling.
## Key Proposals by the Bangko Sentral ng Pilipinas
1. **Daily Transaction Limits**: The BSP proposes setting daily limits on the amount of money players can transfer to online gambling sites via digital payment platforms. The limit is suggested to be no more than 20% of the average daily balance of the account owner's transaction account.
2. **Time Limits for Transactions**: A maximum six-hour daily window is proposed for transactions involving online gambling.
3. **Cooling-Off Period**: A 24-hour cooling-off period is suggested for instances of heavy usage to help prevent excessive gambling.
4. **Authorization and Compliance Requirements**: Payment Service Providers (PSPs) and Operators of Payment Systems (OPSs) must secure prior authorization from the BSP to facilitate online gambling payments. They must meet strict compliance requirements, including strong anti-money laundering and counter-terrorism financing programs and robust fraud detection systems.
5. **Minimum Capitalization and Rating**: PSPs and OPSs must have a minimum capitalization of PHP300 million and achieve a Supervisory Assessment Framework rating of at least three.
## Additional Measures from the Department of Finance
While not directly part of the BSP's proposals, the Department of Finance (DOF) is also considering broader measures to regulate online gambling. These include increasing taxes on online gaming revenue, prohibiting government officials from participating in online gambling, using the national ID to ensure that only individuals aged 21 and above can access online gaming platforms, mandating online gaming operators to list their operators for greater transparency, and requiring operators to submit regular reports outlining their gambling-related transactions and business partners.
President Marcos has reportedly been considering a sin tax on the online gambling sector. The proposed rules aim to tackle financial harm and social fallout caused by easy access to iGaming platforms.
The debate on iGaming regulation has become more active since President Marcos banned offshore gambling operations in July last year. Reports describe the boom in online gambling as a double-edged sword, with fast growth creating real problems for vulnerable users. The BSP plans to restrict gambling access for certain users, including students and government workers.
[1] Bangko Sentral ng Pilipinas (BSP), "Consultation Paper on Proposed Guidelines on Online Casino Operations (OCO) of Payment System Operators (PSOs) and Payment Service Providers (PSPs)," March 2023.
[2] Department of Finance (DOF), "Proposed Measures for Online Gambling Regulation," March 2023.
[3] Bangko Sentral ng Pilipinas (BSP), "Circular No. 1143," March 2023.
[4] Department of Finance (DOF), "Circular No. 2023-007," March 2023.
In line with the proposed guidelines by the Bangko Sentral ng Pilipinas (BSP), the strategic use of technology will be essential for implementing features such as daily transaction limits, time limits for transactions, cool-off periods, and robust fraud detection systems in online gambling. Furthermore, as part of the broader measures being considered by the Department of Finance (DOF), technology may also be instrumental in implementing age verification checks using the national ID system and increasing transparency by mandating online gaming operators to list their details publicly.
