The Philippine Amusement and Gaming Corporation (PAGCOR) has reported a sharp decline in income after major e-wallet providers disconnected payment links to online gambling platforms.
E-Wallet Disconnection Triggers Immediate Impact
Assistant Vice President Jessa Mariz Fernandez revealed during a Senate Committee on Games and Amusement hearing on September 16 that PAGCOR’s income fell by 40% to 50% within just two weeks of the delinking.
“This is based on the data from our Accounting and Electronic Gaming Licensing Department,” Fernandez noted, stressing how quickly the directive affected revenues.
Earlier, the Bangko Sentral ng Pilipinas (BSP) instructed GCash and Maya, the country’s two largest e-wallets, to cut connections to gambling platforms. Deputy Governor Mamerto Tangonan ordered the removal of all in-app payment links within 48 hours, with full disconnection finalized by August 17.
Transactions Drop as Regulation Tightens
PAGCOR previously disclosed that online gambling transactions fell by up to 50% following the e-wallets’ compliance with the central bank order. However, it remains unclear whether PAGCOR’s income drop continued beyond the first two weeks or how overall industry-wide transaction volumes have been affected.
The Cybercrime Investigation and Coordinating Center (CICC) welcomed the move, calling it a critical measure against gambling addiction. Lawmakers also questioned whether high-value e-wallet transactions — reportedly reaching PHP500,000 per user — increased financial and social risks.
Tangonan clarified that while gambling-related icons were removed, licensed operators remain recognized as merchants. This allows users to cash in and cash out through regulated channels. Both GCash and Maya executives assured senators they would comply with any additional directives, such as transaction caps and stricter monitoring of lending features.
Lawmakers Debate Future of Online Gambling
The Senate hearing also reignited debate on whether the Philippines should ban or strictly regulate online gambling.
- Pro-ban legislators: Pia Cayetano, Alan Cayetano, Joel Villanueva, Juan Miguel Zubiri, Loren Legarda, Christopher Go, and Raffy Tulfo filed bills seeking a total prohibition.
- Pro-regulation advocates: Sherwin Gatchalian and Risa Hontiveros suggested harm-reduction measures and special levies. Senator JV Ejercito urged tighter oversight instead of prohibition.
Fernandez reiterated PAGCOR’s stance: “Our position is for strict regulation of the industry.” The BSP stated it would defer to Congress, though Tangonan confirmed that the central bank will submit a position paper outlining pros and cons of both approaches.
Committee chair Senator Erwin Tulfo concluded that the panel will continue assessing the social and economic implications before advancing pending bills.
PAGCOR Launches AI Monitoring Tool
In response to the shifting landscape, PAGCOR announced plans to roll out an AI-powered monitoring system to detect illegal gambling sites in real time.
The tool will operate in coordination with the CICC, the National Telecommunications Commission (NTC), and the Department of Information and Communications Technology (DICT) to accelerate the blocking of unlicensed operators.
Currently, PAGCOR relies mostly on manual monitoring through licensees, complaints, and internal reports. The new AI system will strengthen enforcement against nearly 12,000 illegal gambling sites identified in earlier hearings, including online casinos and e-sabong (online cockfighting) platforms.
