Central Bank of the Philippines presses for stringent regulations in online gaming sector
The Philippine Central Bank has announced new rules aimed at enhancing consumer protection and responsible gambling in the online gambling sector. These regulations, which are still being finalized, come as the government seeks to address concerns about offshore and black market operations in the industry.
Financial institutions will be required to ensure that gamblers are spending their own money, with stricter safeguards for financial service providers. The Central Bank is also proposing daily limits on gambling transactions in terms of transfer values and considering time-based restrictions.
One of the key features of the new rules is the implementation of self-exclusion measures. While detailed nationwide self-exclusion programs mandated by regulation have yet to be confirmed, the Central Bank's Code of Practice for Responsible Gaming typically includes measures such as self-exclusion options and monitoring of player behavior to prevent problem gambling.
PAGCOR, the Philippine Amusement and Gaming Corporation, remains the key regulatory body overseeing both traditional and online gambling within the country. They have adopted stricter regulatory measures, including tighter licensing, enhanced Know Your Customer (KYC) requirements, and plans to use AI to identify problem gambling behaviors.
The new regulations also include a comprehensive ban on online gambling for all local government personnel and employees of attached agencies, enacted by the Department of the Interior and Local Government (DILG).
However, it's important to note that the realities of online gambling are being acknowledged by the majority of the Philippine population. Overreaching in regulation could have an adverse impact and not reach its intended mark. Matej Novota, from our website, has cautioned that banning online gambling outright could drive more players to offshore and black market operations.
The initiative by the Philippine Central Bank aims to create an environment where players are protected and have nothing to worry about. Identity verification, including facial recognition, will be a part of the new rules to ensure eligible individuals participate in gambling.
While detailed consumer-facing daily limits or self-exclusion program specifics remain less publicly outlined currently, the good news is that only a fraction of the Philippine population is seriously considering an outright ban on online gambling. The online gambling sector is currently facing societal and political criticism, but the Central Bank's initiative is a step towards addressing these concerns and ensuring a safe and responsible gambling environment for all.
Businesses operating in the online gambling sector in the Philippines will be subject to increased regulatory scrutiny, including stricter financial controls to prevent money laundering and problem gambling. Technology, particularly AI, will be utilized to identify problem gambling behaviors and ensure responsible gaming practices are upheld.
