Grab, Lazada toss out gambling ads in PH after regulatory order

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Regional super apps Grab and Lazada have dropped gambling ads on their platforms in the Philippines following a directive from the country’s central bank.

On August 14, the Bangko Sentral ng Pilipinas (BSP) issued a memorandum halting “in-app gambling access” from all supervised institutions’ apps and websites within 48 hours. Grab and Lazada are registered payment system operators via GrabPay and Lazada Wallet, respectively.

Tech in Asia checked the apps and could no longer see gambling ads on Grab and Lazada as of August 18.

In addition, Lazada has closed the digital storefronts of various gambling operators on its app, where it featured digital vouchers for gambling. The platform sold at least US$8.8 million worth of coupons as of end-July, based on a rough estimate by Tech in Asia.

The ecommerce platform confirmed to Tech in Asia that it had also removed the vouchers on August 18 following clarifications with BSP.

“We conducted a comprehensive review of our systems to ensure that no direct or indirect access to gambling-related content remains available across our platforms,” the company said in a statement.

Previously, users were allowed to link their Lazada Wallet accounts to gambling platforms for cash-ins. As of August 18, however, the e-wallet is no longer listed as a cash-in option on Casino Plus, Bingo Plus and Game Zone. These platforms are run by by DigiPlus, the Philippines’ largest online gambling operator.

Tech in Asia sought comment from Grab but got no response.

Consumer apps have gotten flak for hosting gambling ads on their platforms, with critics calling the rising popularity of online gambling in the country as an “epidemic.”

Fintech players including digital bank Maya and GCash, the Philippines’ largest e-wallet operator, have drawn fire for facilitating gambling even as they tout themselves as platforms for “financial inclusion.”

Both have complied with the BSP directive as of August 16. While ads and links to gambling platforms can no longer be seen on their apps, Maya and GCash remain as cash-in options for some gambling platforms under DigiPlus.

The suspension of in-app gambling access on platforms under BSP’s regulatory body will remain in effect “pending the issuance and implementation of policy that provides standards and expectations,” the central bank said.

The announcement came following a Senate inquiry on the proliferation of online gambling platforms in the country. Senators grilled BSP officials for failing to regulate gambling ads on e-wallets and digital banks.