The Philippines’ central bank has issued a draft circular that would, if implemented, place daily limits on the amount of money players can transfer to online gambling sites via digital payment platforms. The bank also wants to implement a maximum six-hour daily window for such transactions and a 24-hour cooling off period in instances of heavy usage.
The draft circular from the Bangko Sentral Pilipinas (BSP) states that the transfer of funds to an online gaming platform “shall be subject to a daily limit which should not exceed twenty percent (20%) of the average daily balance of the eligible owner’s transaction account” and that “the account owner’s PSP (payment service provider) shall timely reject incoming fund transfers beyond the said limit.”
All payment service providers and operators of a payment system engaging or intending to engage in online gambling payment services will also be required to secure prior authority from BSP. To qualify, they will need to comply with certain requirements of the bank which include, among others, the presence of a strong anti-money laundering and counter-terrorism financing (AML/CTF) risk management system, it explained.
“The appropriate supervisory department of the Bangko Sentral shall assess the qualifications of applying PSPs and OPSs,” BSP said. “Further, the continuing possession of PSPs and OPSs of these requirements shall be assessed by the Bangko Sentral during the conduct of its offsite surveillance and onsite examination, as applicable. Non-compliance with any of the above requirements may result in the denial, suspension or revocation of said authority.
“PSPs that offer or facilitate online gambling payment services shall not be allowed to provide links to online gambling websites or otherwise provide any functionality that will redirect a user to an [online gaming] platform.”
A report by local media outlet the Inquirer said BSP was currently consulting with stakeholders on the draft circular, with comments welcome until 25 July.
“It is imperative to ensure that digital payment services of payment service providers are not misused for activities that are socially harmful and detrimental to financial health,” BSP said.
“These regulations establish standards and expectations for PSPs in the provision of online gambling payment services as well as set the enhanced know-your-customer measures to uphold applicable legal prohibitions on access to and participation in online gambling.”
The proposed regulations follow a move by some lawmakers to impose a variety of new restrictions on the nation’s growing eGames sector.
Those restrictions include, among others, stronger Know-Your-Customer rules, greater regulation of gambling advertising, the imposition of a minimum top-up threshold of Php10,000 (US$177) and a ban on payment platforms like GCash and Maya from working with online betting operators.
Online gaming operators and those who provide back-end platform support have expressed support for common sense restrictions but have rallied against calls by some lawmakers to ban online gaming altogether.
In a joint statement issued over the weekend, Manila integrated resorts Newport World Resorts (NWR), Okada Manila and Solaire Resort – which all operate licensed online gaming sites – said they already operate under strict guidelines outlined by regulator PAGCOR, adding that they all “prioritize ethical business practices and promote responsible gaming”.
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