The Philippine central bank has ordered mobile wallets, payment apps, and other supervised institutions to remove links to online gambling platforms within 48 hours.

Deputy governor Mamerto Tangonan said the directive follows a decision by the Monetary Board, announced at a Senate hearing.

Senators are debating proposals to restrict or ban online gambling due to concerns over debt and addiction, while President Ferdinand Marcos Jr. has said a ban could lead to more illegal betting.

E-wallets such as GCash, owned by Mynt, have played a role in online gambling’s growth.

DigiPlus Interactive Corp, a major player in the Philippine online gaming sector, reported a 30% rise in Q2 profit to 4.2 billion peso (US$74 million), bringing its first-half net income to 8.4 billion pesos (US$148.3 million), up 61% year-on-year.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ E-wallets face regulatory paradox as both enablers and enforcement tools

The central bank’s 48-hour ultimatum highlights a complex regulatory dilemma where e-wallets have simultaneously fueled gambling growth while providing the very data needed to control it.

E-wallets have become the dominant payment method for online gambling, with approximately 65% of players who gamble both online and offline preferring digital betting platforms1.

However, these same platforms provide crucial “Know Your Client” data and transaction trails that help authorities track illegal gambling activities2.

This creates an unusual situation where regulators are essentially dismantling the infrastructure that makes oversight possible, as mobile wallets offer transaction transparency that cash-based gambling lacks.

The PlaySafe Alliance has argued that mobile wallets are “strategic allies” in curbing illegal gambling precisely because they create digital paper trails2.

The BSP’s directive forces a choice between accessibility and control, potentially pushing gamblers toward less regulated payment methods that are harder to monitor.

2️⃣ Philippines pivots from offshore gambling hub to domestic-focused regulation

The current restrictions represent a broader shift away from the Philippines’ previous strategy of serving as an offshore gambling center for international markets.